RE:Q2-2021: FRONTERA & CGX ENERGY EARNINGS RELEASE Listened to the Frontera earnings call - very positive. The Q&A was perhaps the most insightful as a question was asked about the timing of bringing in a third party partner.
In response, Frontera outlined their high confidence in the prospect and are thrilled to be drilling it. The primary target is a Santonian interval. There are two secondary targets - one is campanian and the other is a deeper Santonian interval.
On seismic, these three intervals appear to be stacked on top of each other. Both primary and secondary zones have thick and coarse sand intervals visually apparent on seismic. The primary objective is expected to contain high quality oil.
Also, they have formed an experienced team to get this well drilled. Made the point to mention that several of these individuals have been involved in drilling comparable wells in the Guyana-Suriname basin.
In response to when a strategic venture might be announced - Frontera mentioned they are in discussions with several parties - however, "nothing concrete" has been established to warrant a market (public) update. In addition, there are no parameters established as to when a deal might get announced. It could happen at any time. It sounds like timing of an announcement is based upon getting the right deal, at the right price, at the right terms.
Frontera also made the point that a future deal may or may not involve the deepwater port. Also, may or may not involve both licenses.
Frontera also made the point that they have the ability to drill Kawa on their own and get results without the need to rely on a third party. They are preserving their option for the optional well, Makarapan (located on the Demarara license).
My read through here (and perhaps a bit different from what Suresh mentioned several months ago) - is that we may be getting closer to a deal. One that perhaps is of similar terms to what Apache negotiated with Total would be my assumption.
Things are moving pretty quickly now. GLTA