Share price is a yo-yo! What a joke. Maniupulated for well over a year to remain at certain levels (.50 or $1 for examples). Now it spikes for a week and plumets back down just as fast... talk about an old fashioned pump and dump. Better question amid all of this... why was it allowed to spike in the first place? Why did the MM's take the reins off and allow it to jump and then allow it plummet back down again? Many theories could abound. Either way, guess we have an idea what would happen in the event Kawa-1 is a dud... the share price would plummet quick.
Also, I wish to remind everyone that Frontera management are not "saviors" as everyone is mentioning on this board the past couple days. We just have such low expectations of CGX (AGM proved this again) that anything in comparison looks good.... be like working offshore for 30-days and coming back to land... any woman would look good! Hell, other than putting together some basic PPT's, shooting seismic and doing some press releases, its not like they have done anything that special. Just shows how pathetic CGX was at their job. If Apache and Exxon hadn't found oil near Corentyne, I highly doubt these guys would be drilling Kawa-1 either (previous Utakwaaka-1 well shows this clearly). To me, their greatest accomplishment has been getting ~75% of CGX shares for next to nothing!
But my goodness, everyone on here talks of De Alba and Frontera management as saints who have impecabble records with running a oil business. Look at Frontera and their actual production and share price since they re-structured from Pacific Rubiales and thus had De Alba take the reins. In 2017 1Q, they were averaging ~76,000 boed. In 2021 1Q, they were averaging ~40,600 boed... close to 45% reduction. In 2017, their share price was close to $28, and currently its around $7.50... close to 70% drop. And yes, covid did happen as well. But I would implore folks to look at Dec 2019 as well (before covid). Share price was still falling hard and production was still declining. Covid just made things worse and they have not rebounded like other good companies in 2021. These guys are not exactly that great at their job. I am pretty convinced they are going for broke with Guyana at the moment because they know their current job with their Columbian and Peru projects have been failures from the larger metrics and they need a massive catalyst (no pun there) to get Frontera going again.
Why I stick around... cause it probably will go up again leading into drilling. But once that happens, I will sell majority of my shares. Banking gains is always a good thing and nothing is ever guaranteed with offshore expoloration. Even in Guyana-Suriname.