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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 BoDidley5656on Jul 28, 2022 12:12pm
296 Views
Post# 34857264

RE:AGM questions

RE:AGM questionsHere's a crack at some answers (embedded into the text below) that I bet will not be answered at the AGM:

1. Why didn’t Suresh exercise his options before they expired May 2022? It would have given confidence to existing shareholders.  - Because he was given a sweetheart deal not to excercise as DeAlba went crazy when then the previous CFO excercised some shares!

2. When will the port open its first phase?  Never!  Frontera has no intention of completing the port.  Frontera or CGX has no contracts.  The Guyanese Government are really unhappy and have signed a deal with a middle East outfit to build another port.   FEC/Frontera has wasted more shareholder money!

3. In light of De Albas past with fiduciary lawsuits at Catalyst Capital, how can minority shareholders be assured he has our best interest? He’s walking a fine line with his hands in many pots.  He doesnt care about the minority shareholders.  He just wants incremental value ready for when he sells FEC.  So, he will bully the FEC/CGX boards into agreeing with whatever he wants to do.

4. What exemption within the 61-101 did FEC exercise that states no formal evaluation is necessary? To that point, how can Corentyne interest be sold when nobody really knows what Kawa held or whether it was commercial? Kawa is not commercial.   Thats why they are drilling Wei.   If Kawa was commercial FEC would want to drill an appraisal well.   FEC/CGX needs Wei to be successful to prove up some commerical volumes but as I have repeatedly indicated they will be very lucky if sufficiently thick reservoir sands are penetrated in the Wei-1 well. 

5. What is CGX’s plan if Wei-1 goes over budget similar to Kawa? More dilution?   FEC will step up again and dilution will result. No companies are interested in farming in.  This has been proven at least twice. 

6. At what point is the corporate veil pierced where the parent company exercises significant control over a subsidiary? Prior case law suggests 75%, thoughts?  This is a good question.  Internally FEC will take action swiftly to buy out CGX if Wei is successful or at least squeeze them.  The puppet master will cut the strings and the dear Prof will be left dangling.  I think that Wei is too high risk and FEC will bail before we even know the final results.  They will string us along like last time. 

7. What kind of deals were on the table to farm down in the Corentyne block? Why was Frontera’s selected?  CGX had no choice.  Chariman of both boards wanted it and no companies wanted to farmin.  The answer to this question is obvious.  
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