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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

Post by OIL_RUNon Dec 16, 2021 1:20pm
760 Views
Post# 34237564

GOOD UPDATE

GOOD UPDATE

For those who have been following the Guyana-Suriname basin and the news release issued by CGX / Frontera this morning - there is a striking similarity to how this is playing out relative to Apache's Maka Central Discovery. Very similar indeed!
 

When Apache drilled Maka - they issued an operational update in early December letting investors know they had reached TD and were evaluating both campanian and Santonian targets. See link: https://www.globenewswire.com/news-release/2019/12/02/1954635/0/en/Apache-Corporation-Issues-Operational-Update-on-the-Maka-Central-1-Well-Offshore-Suriname.html


In the press release they also mentioned they were extending the well to penetrate two deeper cretaceous objectives (which we later found out was a deeper Santonian objective and turonian fan ). The well results were delayed by a month. After this general market update in December - Apache sold off with the market thinking the well was uncommercial - see link: https://seekingalpha.com/amp/news/3523079-apache-crashes-to-18-year-lows-after-incredibly-thin-suriname-well-update


Well in January, Apache revealed they had indeed made a major discovery with Maka and (in the same press release) - announced a joint venture with Total. See link: https://seekingalpha.com/amp/article/4316079-apache-this-discovery-is-huge-company-is-takeover-target


So, some ask why the didn't Apache just come out in the December press release and announce the campanian and upper Santonian results? Well first, they were still evaluating the campanian and upper Santonian targets. Second, they were letting investors know the well was to be an additional month to reach TD (well was being deepened). Finally, they were also negotiating (behind the scenes) a JV with Total (which was revealed in Jan).


Does history repeat itself???  I would think it's very possible next time we see a PR from CGX Kawa results will be revealed and a JV partner will be announced.


Get your chair!



 

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