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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 Schreibzeyon Apr 11, 2022 10:42am
191 Views
Post# 34593551

RE:RE:RE:RE:RE:Re re loan terms

RE:RE:RE:RE:RE:Re re loan termsRight, my point is that the threshold for money not being spent on that loan is $19M, so the way I understand it, OYL needs to spend $16M before that 2% fee kicks in. Not a huge deal, but there is a reason they put it in there.

They would know what they need for Wei-1, or other immediate expenses. If only $16M at 33% share, that means total expense is $48M. We know Wei-1 itself is more than that. Then, the loan extends to September 2023 now. The inference is that the money has got to come from another source, not just a FEC loan - especially with all upcoming. 

Initially speaking, assume they draw the entire $35M, which is possible after Kawa. At 33% share, the total cost would be ~$106M. 

All being said, the lab results are still coming in. I don't think they know whether they're going Wei-1 alone. I could be wrong, be glad to know what others think. 
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