RE:RE:RE:RE:RE:CGX and Fronteras emailJtdd,
If they are still drilling (which I agree) and have to extend it till the end of Dec/early January, CGX will require additional funding to pay the bills. Historically, Frontera has never offered any extra cash in any deal with CGX other than what was critically necessary at the time. This well is no different and now I think the share price is now reflecting this reality (among others). The market is probably reflecting the probable dilution of an additional 10-20 million shares at ~.80-.90 cents. Unreal really when you think about it.
Its funny, Frontera does have lot of cash riding on the success of CGX stock. Yet, their actions (especially De Alba) with this golden opportunity over the past couple years suggest a complete lack of understanding towards risk management. Suppose we should not be suprised. They have been horrible operators in their other assets and are proving that they have not learnt anything with regards to their Guyana assets. If they truly wanted to make a potential JV parnter pony up cash in a deal, Frontera should have guaranteed CGX money for three exploration wells (two in Corentyne and one in Demerra), money for the Port and extra cash as a contingency (for events like right now with Kawa). This way the entire future of CGX is not riding on the success/failure of one well and thus CGX could negotiate from a some position of power. Instead, they have penny pinched CGX to death.
I personally think Catalyst should remove De Alba from his responsibilities on both Frontera and CGX. He has overseen massive shareholder reduction in Frontera over the past five years and his actions with CGX have been incredibly poor/suspect over the past two years. I think of him like a great athlete who struggles in their post-career role as either coach/GM. He might have recieved great recognition for his work in other industries, but he is completely out of his element in the oil and gas world. If Catalyst chooses not to do this, then I hope Mr. Jadgeo demands he be removed from CGX in 2022. If Guyana is truly serious about seeing any oil producton from their licenses held by CGX/Frontera, De Alba will not deliver it for them. Sorry folks, this is the sad truth. Any individual can gamble and hope for a successful well. Takes actual brains and forward thinking to take advantage of a limited window opportunity. He has clearly blown this and CGX share price is now reflecting this.