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CGX Energy Inc V.OYL

Alternate Symbol(s):  CGXEF

CGX Energy Inc. is a Canada-based oil and gas exploration company. It is focused on the exploration of oil in the Guyana-Suriname Basin and the development of a deep-water port in Berbice, Guyana. The Company, through one of its subsidiaries, holds an interest in a Petroleum Prospecting Licence (PPL) and related Petroleum Agreement (PA) on the Corentyne block in the Guyana Basin, offshore Guyana. The Company, through its subsidiary Grand Canal Industrial Estates, is constructing the Berbice Deep Water Port. This facility, located on the eastern bank of the Berbice River, adjacent to and north of Crab Island in Region 6, Guyana, is being constructed on 30 acres with 400 m of river frontage. Its subsidiaries include CGX Resources Inc., GCIE Holdings Limited and CGX Energy Management Corp. It is the operator of the Corentyne block and holds a 27.48% working interest. Its Wei-1 exploration well is located west of the Kawa-1 discovery in the northern region of the Corentyne block.


TSXV:OYL - Post by User

Comment by OIL_RUNon Jun 29, 2021 10:05am
403 Views
Post# 33465548

RE:RE:RE:JUNE-28-2021: CANJE LICENSE VALUATION

RE:RE:RE:JUNE-28-2021: CANJE LICENSE VALUATIONOn CGX's Demerara license - the reprocessing of the 3D seismic and reinterpretation of new prospects is expected to be completed in May 2021. CGX has contracted WesternGeco to perform this work.


Reprocessing and high grading prospects over the Northern Corentyne area was prioritized first given a tight drilling deadline.


Hence, I believe the resource report over Demerara is dated. You can clearly see the emerging view from CGX and their company presentation regarding their first drill prospect Makarapan "seismic amplitude of prospect is over 30,000 acres in size, it is larger than any single discovery made to date in the Guyana Suriname basin".


Well, we know Liza is larger than 1.25B in recoverable resource.  So, Makarapan should be at least equivalent in size.


However, the resource report CGX has for Demerara only shows 415M boe median resource for all prospects on the license. So, these two data points (resource report and company presentation for Demerara) are clearly miles apart. The rationale behind the difference (in my opinion) is the pending reprocessing of 3D seismic over the Demerara license.

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