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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 Nov 13, 2023 8:40am
144 Views
Post# 35731552

RE:RE:RE:RE:RE:RE:RE:You're not helping your stock price

RE:RE:RE:RE:RE:RE:RE:You're not helping your stock priceYes Sporty, I have a bunch of questions pending that I have asked my little network of specialists. So far, I understand that a permanent abandonment is a series of bridge plugs with cement plugs on top with well head cut off. A temporary abandonment is the above but with the well head not cut off with a "dry hole plug" installed in the well head. This allows for re-entry. Remove the dry hole plug, drill out cement plugs to desired depth, run a production packer with 9 5/8 inch casing, cement the annular space between the 9 5/8 and the existing casing which is probably 13 3/8 inch. The large diameter 9 5/8 allows them to run big perforating guns which can blast holes through the 2 casing strings and deep into the formation opening the formation up to flow to surface.

The questions are if both Wei and Kawa have been temporarily abandoned. If yes, then they both can be re-entered and flow tested. We don't know the pore pressures of the target formations. But proper test string design, surface equipment can handle the pressures involved. And because the formations are relatively shallow I doubt they'd see HTHP conditions but I'm not sure about that.

So technically I see no major headwinds. It was the talk of class action suits on this board that bothered me. One friend said that nobody would go near a farm down deal if they thought that the cloud of class action suits overhung the play.

So me not being a lawyer, much less a lawyer specialist in corporate, finance law I contacted a friend who specializes in family law in Canada to get her non-expert opinion because she doesn't specialize in corporate finance law either. But she knows lawyers and she said that rest assured that Bay Street is loaded with some very sharp, experienced lawyers who would jump at the chance to launch law suits, probably for free to the plaintiffs in exchange for a big percentage of the award, if there existed a good case of malfeasance. 

So I highly doubt that these companies would want to risk their own investment by pulling any shenanigans. So for me the potential upside is now much greater than the risk.
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