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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 Dec 09, 2023 8:58pm
171 Views
Post# 35776595

RE:Exhaustion!

RE:Exhaustion!Oh geez Phantomblogger, now we're getting into legal stuff which I know very little about. Here's my understanding: The well results are legal documents, logs, specimens etc. For example whoever logged the well produced logs that could be used as evidence in a court proceeding. They would be crazy to produce bogus evidence. Same with cuttings/core/fluid samples, drilling operational parameters etc. All of that evidence will be 100% reliable. I don't think any company like a Schlumberger or Geoservices will "salt" the evidence like they did in the famous Bre-X scandal. Their reputation would be destroyed. Their sp would plummet.

Ok, so we have 100% reliable data points. The trick is how to interpret the data to develop a reliable geological model and resource estimate. Now don't jump all over me here people but I more or less remember that they said that at least 2 more appraisal wells will be necessary which, to me, must include flow testing the wells. Some on this board got on me saying that flow tests are not necessary for a JV/ farm down to happen. I say that they are. I'll just leave it at that.

So the question for a potential partner is whether there's enough evidence to justify to their shareholders of a high likelyhood of a commercial discovery to enter into an arrangement with the fec/cgx JV. Two appraisal wells w/ flow testing of the Maas and Camp would cost how much? $200 million maybe? So is there enough evidence there to risk spending, say, $200 million? If that gets clarified in a positive way during the presentation then this play will be appealing to investors. I sure do hope that fec's ecploration manager Regan Palsgrove handles the presentation. She was excellent in their May 2022 webinar. I don't even know if she's still there or not. 
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