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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 westcanprideon Jul 22, 2024 12:25pm
172 Views
Post# 36142826

RE:RE:Fairly simple next steps…

RE:RE:Fairly simple next steps…

You missed my point. Of course I know FEC has their own money on the line with those shares and would be "losing" $82 million. 

But what is the alternative? Take CGX out at .40 cents like you propose? How in the world does this help FEC? FEC still needs a hell of a lot of cash going forward to pay for new wells in Corentyne. What's the goal instead? Keep drilling one well per year and hope to get lucky on the open markets? Not too mention, it would be an admission to the entire market that FEC thinks the license is worth very little and thus make their life very tough going forward to get a new partner. So yeah, sterilize their shares in CGX so they can come out the "winner"? 

On other hand, why not play the game and push CGX higher and get their investment back? Not too mention, FEC share price would probably go up again and their could issue new shares and even have more cash on hand to do stuff in Corentyne. 

 

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