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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 Schreibzeyon Mar 30, 2024 12:52pm
164 Views
Post# 35961105

RE:RE:RE:I get pis...d

RE:RE:RE:I get pis...d I think the answer lies within the reserves provable that are valued in the total assets portion of the balance sheet. In my estimation, Corentyne reserves are not proven, thus wouldn't be reflected until they meet a certain reporting threshold. It's complicated, but FEC listed their 1P, 2P, 3P reserves in their YE 2023 press release. So I think you're making the point that if they drilled more appraisal wells, the Corentyne reserves would be more accurately reflected in the assets section of the balance sheet. 
The follow on to that last statement, is that if they drilled more appraisal wells and classified those barrels as reserved, it's a moot point, becuase both OYL share price and reserves value would increase by a factor of X. I don't believe the relationship of OYL shares to proven reserves is 1 to 1. 

I found this article helpful: https://mercercapital.com/energyvaluationinsights/valuation-issues/oil-and-gas-reserve-values/

Seems to me that the financial statement valuation of provable, proven, possible, probable all have varying defintiions/measurements based on CAPEX and the price of Brent long-term. But at this stage, there just isn't enough information - or that's the fine line they're walking. IMO
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