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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 Aug 04, 2022 1:45pm
215 Views
Post# 34871632

RE:RE:RE:RE:RE:RE:RE:Formal Evaluation

RE:RE:RE:RE:RE:RE:RE:Formal EvaluationHow do you figure Miftee that the valuation would have been lower pre-Kawa 1? 

As per Feb 2021 resource report, the upside potential for CGX looked pretty damm good. 
https://www.newsfilecorp.com/release/74529/CGX-Energy-Inc.-Announces-Guyana-Resource-Evaluation-Report

Additionally, CGX was trading at a far higher market cap for much of the past year relative to where we are today. Seems like the market had a pretty high valuation of the opportunity at hand. 

If anything, management f*cked up royally and did not secure the needed cash to drill at least 2-3 wells prior to spudding Kawa-1 (and thus avoiding having everything ride on one well result). The momentum was there and they let it slip away. Heck, back in February post Kawa-1 initital news release, the shares were over $3.... they could have easily done some open marke deal at a far more favorable deal than what was done recently. 

Anyway, regardless of what we think, its clear both the market and external entities view Corentyne in a very conservative light and hence the current CGX market cap. Let's see what happens next week once that stupid Frontera Dutch Auction ends. Near impossible for CGX to actually go up in market cap relative to Frontera when their market cap is purposefully being held down by the market makers. 


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