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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 4:15pm
304 Views
Post# 34439534

RE:RE:RE:RE:RE:RE:CGX and FEC

RE:RE:RE:RE:RE:RE:CGX and FECYeah its tough Chulo. Who knows. 

Like you said, CGX owes Frontera a lot of money to pay for Kawa-1. Frontera would love to get this money back either through new shares or additonal working interest.

End of day, Frontera could easily force CGX's hand and get their money back for pretty cheap (as they have done numerous times in the past couple years). A new rights offering at $2.50 CAD would not shock me. The irony, however, is how is Frontera then supposed to go and argue that they should be able to get a much higher premium for a JV buy-in when they do not have any money to develop squat in Guyana? Its almost like Frontera wants the best of both worlds (shares/WI from CGX for very little / massive buy-in from external party). I guarantee executives at other companies won't be played for puppets like De Alba has done with CGX. If they see Frontera getting additional CGX shares/WI for additional pennies on the dollar, no way in hell will they kiss his butt and give him a massive premium in return. 

Who knows, maybe the government will step up and help CGX pay for costs going forward. Would actually love to see that... CGX become flush with cash via government help and thus can push back at Frontera and tell them to shove it. 
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