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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

Post by westcanprideon May 28, 2024 12:06pm
227 Views
Post# 36060493

Basic math has to prevail… eventually I hope!

Basic math has to prevail… eventually I hope!

Assuming we take the difference of 514 and 628 mmboe prospective resources, we get 571 mmboe. 

Numerous examples of companies paying well above $1/mmmboe for prospective resources when buying a block of land. For simplicity, let's go with $2 usd/mmboe for Maastrichian. 

$2 mmboe x 571 mmboe = $1.142 B usd total 

$1.142 B usd x 1.35 cad/usd conv rate = $1.54 B cad

$1.54 B cad x 27.48% WI = $423.6 M cad

$423.6 M cad / 338 M outstanding shares = $1.25 cad/share. 

End of day, if these losers cannot even get at least $1 cad/share for CGX something is seriously wrong. None of the math above even assumes any value to the port, past tax credits, deeper horizon oil value, etc.

Even for FEC, 72.52% of $1.54B = $1.11B or $12.97 cad/share. 

I have personally seen companies with no money sell their oil resources for great money and make shareholders happy. Northern Corentyne is situated right next to ExxonMobil JV for bloody sake and you have a government also desperate for hydrocarbon production. 

If De Alba can't make this opportunity work, he should be prohibited from ever being allowed to sterlize any other company again in the future. A group of university students could monintize this opportunity better I have no doubt. 

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