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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 IceDog13on Jul 22, 2024 2:33pm
152 Views
Post# 36143055

RE:RE:RE:Fairly simple next steps…

RE: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."
$82 Million is a LOT of money for any company. What makes you think FEC would just give this to CGX investors?

"But what is the alternative? Take CGX out at .40 cents like you propose?"
You are proposing taking them out at $1 a share, which is a massive overpay. How does that help FEC investors?

IMO, from all the rhetoric coming from the government these days, the only way I can see OYL continuing with any stake in the Corentyne block is if they have mangaged to find a partner with offshore production experience. The government has made it clear they want a solid production plan with a clear understanding of how it will be financed. As OYL has no cash, they will have to give up a share of their remaining stake, lowering it to what I would guess to be in the 10% range for a carry. If this partner is not already found with them currently just going over the fine details of the farmout with an announcment within the next few months (could be days, these can be very complex deals)... they will lose the Corentyne block.

That will leave CGX with an unfinished Port. I am sure there are lots of financing options to get this over the finish line if they have a solid business model for this project, so CGX will survive, but is anyone here for a company that owns a port?



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