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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 Rdjfarmson Dec 04, 2022 6:15pm
211 Views
Post# 35149794

RE:RE:RE:RE:RE:Starkly……

RE:RE:RE:RE:RE:Starkly……I am new to both....but looking at both FEC owns most of CGX plus the hold debt that is convertable into CGX shares that has the potential to dilute other shareholders of CGX.

They are both really interesting oil plays but what has me really interested is the infrastructure the FEC owns, and the Guyanan port that the two companies are building.

All things created equal I would probably buy CGX over FEC but the that FEC  convertable bridge loan that FEC lent to CGX is secured by all of CGX's assets. Huge overhang and I think makes it a better option to buy FEC over CGX.

There is risk in both of these plays but the biggest risk I see is shareholders of CGX getting dillueted ownership as a result of FEC's ownership and loans to the company
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