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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 Jun 16, 2022 11:49pm
233 Views
Post# 34763432

RE:RE:License Thoughts

RE:RE:License ThoughtsSchreibzey,
I respectfully disagree with some of your assessments. But that is what makes this board worthwhile, constructive discussions. My thoughts to some of your points below. 

A) How do you sell an entire business when you have two outstanding drill commits within the short-term? What major signs up for that risk profile?
- I would ask then, what was De Alba and Suresh, among others, doing the past couple yrs then? They managed to get Demerera extended in February 2021. Are you implying then they had no aspirations of selling the past couple years and only now have the desire to make a sale? If so, talk about horrendous asset management, especially when they have spent money on seismic re-processing.
- To me, in all truth, it looks like their finally got their bluff called by the government and were no longer able to kill time by making promises they could not deliver. 

B) H
ow can you be so sure De Alba wants to be in this long term? Where has he ever stayed long term?
- He has been with Frontera since late 2016. If this does not count as long term, I am not sure what does. 
- Like I said, his performance at Frontera has been very poor. Go look at the TSX or NYSE of any 10 decent O&G companies since Jan 2017 and then compare to Frontera.... its not even close. 
- I am sure he would love to sell and do something else... but then again, that would require proper asset managment. Today's news release is a clear example of very poor asset management IMO. 

C) the government could have held CGX accountable for two drills, where would the money come from that?
- Hell, we still do not have money for this upcoming Wei-1 well and have no idea how it will be financed by CGX. Which is the entire irony... they went for broke with Kawa-1 and now have nothing to show for it. Still broke as a joke and having to relinquish licenses because they do not have the money to finance drilling operations. Any O&G professional could tell you that offshore basins require multiple wells, not just one. Management got greedy and arrogant with their strategy around Kawa-1 and this is a outcome of such moves.
- And worse, even if they were looking to sellout after Kawa-1, having extra $ on hand would have at least given management some form of leverage in a JV or Buyout Discussion. Would show they are serious about drilling multiple future wells. Clearly that did not happen. 


End of day, it seems like many people are either OK with the licenses being dropped or are quite upset (and I am talking long term holders of CGX based on posters on stockhouse, not just penny flippers on stocktwits). I obviously fall into the upset catergory. 

Like I said before, only way a deal ever gets done is because Mr. Jagdeo makes something happen. 

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