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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 ThosAquinason Feb 04, 2022 7:25pm
621 Views
Post# 34399994

Company valuations

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.
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