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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 Jan 13, 2022 10:59am
223 Views
Post# 34312699

RE:RE:RE:RE:RE:RE:RE:Interesting couple weeks upcoming

RE:RE:RE:RE:RE:RE:RE:Interesting couple weeks upcomingOh I see waitingstill... because Frontera took a risk in Dec 2018 as part of the original JV deal, they are now entitled to a lifetime of incredibly favorable loans from CGX?

I guess CGX should just gift Frontera an additional 33% Working Interest in Corentyne in the event Kawa-1 is successful to help pay for the rest of the well cost, because you know Frontera took all the initial risk and deserves to be rewarded for it! 

Anyway, I respectfully disagree with this premise. Yes, Frontera is a partner. But man, CGX is also its own company and should have been demanding a premium where it can, especially in light of how things unfolded in 2019/early 2020 with discoveries in Pluma, Haimara and Maka, not to mention the port opportunity and favorable government terms. Surely, CGX shoud have been able to make way more favorable deals in light of these new events. Instead, they let Frontera too take full advantage and now they pretty much run the entire show financially and they dictate all the terms now. So end of day, it really don't matter. I just find it very sad that we are literal days away from news release and CGX as a company is not even worth $1B market cap and has literally everything riding on the success/failure of this well. All shareholders should be pretty upset at this, or least that is how I think on the matters. 
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