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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 Duderrron Jun 17, 2022 12:51am
212 Views
Post# 34763484

RE:RE:RE:License Thoughts

RE:RE:RE:License Thoughts

You guys both have valid points. Although I value WCPs well thought out and often critical point of views, I'm going to have to side with Schreibzey on this one. I've been a long term OYL holder btw. 

Yes, mismanagement got them to the point where they were  going to lose these leases next year, but we've know that for ages. For that reason this shouldn't be considered a new negative event. I truly don't believe these other licenses added value from a buyout valuation (not this close to the end of the licenses). You could say this move signals confidence in what they see in Corentyne, but mostly its a sign of good faith towards the government. Essentially turning contingent liabilities (upcoming penalties) into a "gift" to the Guyanese government - strengthing/repairing relations which may benefit the deep water port, lead to smoother/quicker gov approvals should a JV deal materialize and possibly (less likely though) better terms on the future Production Sharing Agreement if they get to that point. 

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