CGX Energy Inc V.OYL

Alternate Symbol(s): CGXEF

Energy Oil & Gas E&P

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.

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CGX Energy Inc > Q2-2021: FRONTERA & CGX ENERGY EARNINGS RELEASE

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Comment by Windyhillon Aug 12, 2021 2:58pm

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Post# 33695253

RE:RE:Q2-2021: FRONTERA & CGX ENERGY EARNINGS RELEASE

OIL_RUN wrote:
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