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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 Jul 22, 2024 10:01am
377 Views
Post# 36142519

Fairly simple next steps…

Fairly simple next steps…

It's pretty simple at this point. If no JV/farmout is available via HL efforts, then FEC has to buyout CGX from Corentyne and the port. 

Let's be real... FEC has ~257 million shares in CGX. They buyout CGX at $1 cad, they only have to pay $82 million cad for the remaining shares and in essence walk away with $175 million cad in "new" cash ($257-82). I say new only because this investment has been horrible for them and this cash would in essence open many new doors again. 

That money would go a tremendous way to paying for new wells in Corentyne (provided FEC wants to keep the license and not be the next causality of government anger). 

Would FEC allow $175 million in "free" cash become evaporated because they were too stubborn to play fair with CGX and rather allow them to become eliminated by the government? I guess weirder stuff has happened but I cannot see it. 

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