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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 Kelvinon Aug 12, 2023 11:51am
186 Views
Post# 35585321

RE:Re Conference call

RE:Re Conference callTaal, here's an analogy: There are two partners "A" and "B" in a 50/50 split arrangement. They produce 1000 units of something that costs &1 per unit to produce but that they can sell for $5 per unit. So "A" owns 500 units and "B" owns 500 units 

"A" cannot come up with the entirety of his share of the production cost. "A" is $100 short.  "B" agrees to give "A" the $100 in exchange for the ownership of 100 more units of what they produce so that now "B" owns 600 units which is 100 units more than the 500 in the original agreement.

"A" protests saying that the units produced are worth $5 each and that "A" should only give "B" 20 units in exchange for the $100. "B" replies "why would I pay you $5 per unit when I can produce them myself for $1 per unit."

Why should fec pay any premium to cgx at all? Regarding Corentyne I understand it to be much larger than the eastern and western channels of Kawa and Wei. I read one estimate that Corentyne could hold up to 4.2 billion barrels. 


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