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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 Feb 17, 2022 12:26pm
299 Views
Post# 34438467

RE:CGX and FEC

RE:CGX and FECChulo,
I doubt the government will ever allow CGX to be bought out completely. There is a deep intimate relationship between CGX and the Guyana government that will likely always exist. The conference  the last couple days is a good example... Suresh down there giving talks, interacting with everyone he can.... and De Alba is no where to be seen. Suresh has his shortcomings, but at least he knows the value of relationships and trust. 

So yeah, as much as Frontera would love to take CGX out completely (and the $2.82 CAD share price right now is a complete joke really, making it easy to pay the premimum needed to acquire all remaining shares), it probably will never happen. In fact, given the deep personal connections, any other JV partner would probably love to have CGX stick around (even at 10% WI) just for regulatory and peace of mind purposes. 

In saying this, who in the hell would actually want to partner with Frontera in Guyana? What do they bring to the table? They have no offshore expertise, no big pockets, nothing. If anything, having a small time company like Frontera calling the shots right now is probably the reason no JV deal has been done. 
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