RE:RE:Q2-2021: FRONTERA & CGX ENERGY EARNINGS RELEASEI truly hope Frontera is moving closer to a JV deal.
Its clear their own production and earnings from Columbia are not doing very well. Another $25MM USD net loss for 2Q (this is not good and reflects poorly on their entire management team, especially given brent oil was well above $70USD for much of 2Q). Frontera, outside of Guyana, is doing very poorly and this trend has continued for years now. I think their entire management team knows Guyana is certainly their one chance to recover and become stronger as a company. Are they bold enough to drill Kawa-1 to TD alone and risk everything on a single well result? Guess we will see in a couple months.
My take: I think any JV deal is probably completed at this point (if one does exist)... the potential JV partner though is doing the smart thing. Wait to see the well result before buying in... leaves a lot of risk on Frontera though! Plus, its not like Frontera or CGX have billions of dollars kicking around to develop any field discovery on their own and can thus make massive demands if oil is found.... they need a JV partner for cash and everyone in the industry knows this.
Least we are going back up again! Hopefully it continues and CGX surpases the market cap of Frontera shortly (which in itself is pretty funny/sad at the same time).