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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 westcanprideon Jul 05, 2021 11:13am
252 Views
Post# 33492686

RE:not sure .....

RE:not sure .....Your post makes no sense Frank. 

By your logic then, if Kawa-1 comes in unsuccessful, should Frontera's share price then plummet a couple dollars back down to $4-5/share given that CGX will fall in share price as well? Of course not... unlike CGX, Frontera does not have everything riding on Kawa-1. They still have current operations. 

As for Frontera share price today vs 2017 and why its so low... $30 in 2017 was when they had ~55M shares outstanding. Today they have ~100M shares outstanding. In 2017, they had close to double the production they have today. Most of the shut-in oil today is of heavy quality, and will probably never be brought back online again (reservoir engineering reality, not to mention economic). Frontera also has more long-term debt today, lower 2P reserves vs 2017, etc. Frontera might be undervalued a little bit, but not too much. They aren't that great of a company when the numbers are looked at more closely. 
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