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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 Nov 05, 2021 12:18pm
168 Views
Post# 34092526

RE:Wcp

RE:WcpThose are good questions Taal.

I think that they certainly did engage in JV discussions. As we know, offshore development will cost well in excess of $5B when using offset examples. Frontera does not have this money. Neither does CGX. Its very possible low ball bids have come into play and other JV partners are going to make Frontera/CGX take all the risk in finding the oil before any deal is made since they know cash is not exactly that easy for either company to access.  Who knows though what has truly happened behind the scenes.

Either way, when Frontera talks for over a year about 'strategic alternatives' and 'looking to optimize shareholder value', a JV is strongly implied. If there goal was to just drill the Kawa-1 well on their own, they should have been up front and showed convinction and not hide behind flowery statements. Instead they killed time, left many in the dark with how the well would be funded until their recent rights offering, and in essence did not show full confidence until they absolutely had too. 

Let's be real everyone... $1.20 share price with the reservoir zones about to be drilled in the coming days/weeks is a real joke. I mean, its beyond pathetic. In essence, us shareholders are getting no 'bump up value' for the opportunity and instead are hoping the well is successful to make big profits. 
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