RE:lots of cashflow doesn't help us if 100's of million moreI don't see why a Vulture Capitialist who owns over 40% of FEC shares and and completely controls everything FEC/CGX would want to invest $100's of mm's more in another JV over several years in the offshore oil business? Based on recent history, Catalyst appears to badly need a big winner bringing in cash now.
When their business model is to buy distressed companies, such as PRE (now FEC) in 2015, for pennies on the $. They then try to rebuild and/or restructure these companies and completely cash out normally within 8 years. They restructured FEC about a year ago. Making Frontera Guyana a standalone debt free subsidiary. The main reason to go to the expense of doing so, would seem to be able to sell FEC in pieces.
Based on the location of the Northern Corentyne block adjoining Starbroek's SE Quadrant where the large majority of Exxon's successful wells have been drilled, some just a few klicks away from CGX's deep wells. With all of the Global interest in Guyana oil, surely there is a lot of interest in Frontera Guyana Since it is the ONLY way to literally get right next to Exxon's hugely $ucessful project. It is almost a turnkey project, saving companies huge amounts of $, time and risk over buying into one on the new offshore leases