New Sharing Agreement Negative ImpactOn the governments initial try at a sharing agreement, XOM took them to the cleaners with a 2% ORRI and a 50% BIAPO. On paper sounds good but with XOM,,,,,nothing ever pays out.
We shareholders have to acknowledge the unknown....which is....what type sharing agreement will the government force on CGX to makes amends for their past failure with XOM? Have wonder why they have not re-negotiated the XOM agreement as that is the norm once oil is discovered.
This"unknown" factor hangs-over the share price as it will impact the value of the reseves at KAWA #1.
Plus, CGX is in a weak position to negotiate seeing as they have no money and no well tests.....
Gotta re-shuffle the deck in favor of CGX and the sharleholders.