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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

Post by docsdrillers1on Jan 09, 2023 10:02am
380 Views
Post# 35210873

I'd like to direct this to Shedrills...

I'd like to direct this to Shedrills...
I enjoy your posts and follow you on Stockwits and recently listened to your last Podcast.

I've been around since pre Boat incident and still believe in this stock.

I want to simplify the argument of valuation by just focussing on the potential value of the Port and what the share price would be if we only owned the Port..to me that is the absolute downside even if we get a duster which i don't anticipate...it's the Port that lets me sleep at night..so correct me if i'm wrong..

You mentioned down the road revenues if i recall at close to 350 Million..not sure how many years down the road that was.But what caught my attention is that Port revenues are usually calculated at a 20-30 multiple.

So shouldn't you be able to come up with an approxiamte share price in a chart form  based on revenues at different points down the road..it should be a simple calculation of total revenues times the trading multiple for that sector divided by the current Share Float.

i think this is worth doing and it may put investors at ease knowing that even in a 100% worse case scenario on the OIL exploration side CGX still has some reasonable built in value that i venture is still higher than the current share price.
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