RE:RE:RE:RE:RE:FEC and CGX have only two courses of action...Devanand1,
Although your right that many Guyanese have shares in CGX, the sad reality is that the Guyana government has not set up CGX for actual long-term success. Yes, they have kept them alive (mainly due to non-business/merit related reasons), but that is very different from giving CGX the tools needed to thrive. Additionally, not demanding CGX have a 20-30yr O&G professional as the CEO is a big mistake also. Suresh, nor De Alba, do not have the technical skillset nor O&G business experiences needed to explore and produce oil offshore. To me, this is the equivalent of the Canadian government putting a journalist in charge of the Finance portfolio... you are setting yourself up for failure/challenges right from the beginning.
As I said countless times, only having money for one exploration well was absolutely moronic. Look where we are now... inconclusive Kawa-1 results/poor data recovery (a risk many were not willing to accept due to the 'dream team' drilling the well), massive debt to Frontera, and big committments upcoming that CGX has no cash to provide at the moment. Like many said this morning, Frontera has CGX by the literal balls right now. Its pretty unfortunate that the government never forced CGX to actually have more financial options and allowed them to become desperate to Frontera for required financing. Plus, let's be real, Frontera themselves have no business drilling these offshore wells either and they do not have the financial means to do anything either long term.
Why in the living hell would government officials (many who likely have shares in CGX) allow such a poor business strategy unfold... especially after 20yrs? I think quite simply they know very little about oil and gas... I mean, when you hire folks like Alison Redford (former Alberta premier) to do technical reviews of Exxon projects, it shows how little they truly know about the business.
At this point, as sad as it is, $3-4 CAD/share in a buyout would be more than fair. At least 2 more appraisal wells are required on Kawa field. At least one exploration and 1-2 appraisal wells are needed on the Wei-1 field, 2 wells in Demerera, and additional ones onshore. Port also needs to be completed. These does not include costs required once a FID is made either. End of day, over $1B USD is still needed before any big decisions are required.