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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 Dirksidetrackon Dec 17, 2021 7:43am
169 Views
Post# 34239735

RE:Strategic vs Tactical

RE:Strategic vs Tactical Oh and Dfly I forgot to mention. Fec made a $19 million dollar convertible loan to oyl in June 2021 for the exercise price on share conversion at 69 cents. Oyl has a bit over 27 million shares in their treasury to cover this loan. The terms of the loan are spelled out on page 14 of the "quarterly highlights" in the November 3, 2021 financial report.

Why couldn't fec convert the loan into shares as payment and use the spread between 69 cents and sp as collateral for a loan to lend oyl in another convertible loan arrangement? Oh and oyl paid back the $20 million bridge loan associated with the RO. So, essentially oyl can keep liabilities low, get funding without having to dilute.

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