CHANGE IN TIDE What is the government of Guyana trying to message to the CGX / Frontera JV partnership?
Pre-Liza discovery - companies like CGX were the apple of Guyana's eye. The company could do no wrong after financially backing Guyana to cover their maritime border dispute.
Furthermore, the government of Guyana 'over the moon' that a small junior E&P would pursue wildcat exploration in a frontier basin - Horseshoe, Jaguar, Eagle.
The fact here is - the tide has changed. No surprises here as we watch a frontier offshore basin transition to one of the most exciting / prolific in the world.
Firms like CGX/Frontera (small junior E&Ps) don't really have a place in this basin anymore. They simply do not have the resources or capacity to advance their program forward. Again, are we listening?
Times have changed. The Guyana Government has clearly communicated their desire to partner with companies capable of developing offshore resources in a safe, low-cost, and timely manner.
CGX / Frontera - are you listening? Perhaps, try and formulate a plan that results is win-win for all parties involved.
The end game is clear. Consolidation is inevitable. It's time to ring the register and collect a few billion from a more capable party. Win-Win.
GLTA