FEC CASH FLOWFEC is raking it in right now, at $80 a barrel they are on course to bring in on an annual basis over $600mm sans hedges. Hard to calculate but it appears that after all conversions FEC owns upwards of 85% of CGX. Because of the time delay on bringing home the BIG ONE (CGX's only hope on paying back FEC) FEC will most likely exchange their share (CGX) of the well costs for more CGX stock bringing FEC's ownership to over 90%.
I am not versed in the oil space but it seems likely that a major discovery is in play here. Certainly, FEC has not counted on spending $150mm. However, they were in too deep (no pun intenden ) to not move forward whatever the cost. So I expect an announcement within days explaining the delay and announcing what they have found.
All comments welcome. Civility appreciated