Company valuationsI'm just an old guy sitting in a chair so don't read anything into my musings here.
The simplest and cheapest buyout that I come up with is a takeout of Frontera while leaving CGX agreements and relationships intact. FEC has a market cap of $1.25B CAD & rising cash flow under todays oil price regime. For a $1B expenditure the new majority owner would control CGX ($1.0B CAD). Further investment toward oil field production would reap a handsome reward, based only on Kawa-1. $2B CAD buys FEC outright today. That seems inexpensive to me even though FEC has a bit of net debt (<$250M USD).
It's intriguing to think of the backroom conversations that must be going on.