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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 28, 2022 4:48pm
305 Views
Post# 34788675

RE:RE:RE:WELL

RE:RE:RE:WELL

Haha fair enough. You've been here WAYYY longer than me.

A merger would still require a formal third party valuation (factoring in Kawa derisking Wei) plus majority of minority shareholder approval would also be required to avoid litigation. Your comment seems to be based on the current price/decline, but the selloff has been on very low volume (50K-200K daily vol. vs 70M public float). Think $3/share now or $5 after Wei-1 if it's successful... not 10c.


I could be wrong, but I'm betting on another loan or a direct/partial sale of the license to Frontera. Both should be great for the share price assuming they are somewhat fairly valued. Who knows, maybe even a sovereign wealth fund like Qatar or UAE wants a slice of the license for $70M (cheaper now than after Wei-1/major JV interest). They've been sniffing around for a while now.

Private placement likely out of the question since it dilutes Frontera.

Frontera backed rights offering at the current share price, after they have let the share price decline so much (partly due to mismanagement)... defs not out of the question, but less likely since they opted for a loan last time rather than screwing over shareholders after a big selloff.


Regardless of the route they take, this selloff on financing concerns is officially overblown. I bought more shares at 92c today and will continue adding to my large position under $2. 

 

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