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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 Aug 27, 2024 11:58am
233 Views
Post# 36197800

RE:Fec

RE:FecThis is not market manipulation or FEC trying to screw you out of your shares. If FEC or CGX buy back shares, they have to let the markets know.

The reality is that there is a massive amount of uncertainty about CGX right now, and the markets do not like uncertainty. Even in a best case scenario, CGX will not have nearly the value they did just a couple of years ago. If (big IF) the Notice is accepted which imo would be due to CGX having found a partner to continue drilling, they will be left with probably 10% of the Corentyne and carried. If (another big IF) they prove the entire 600 mmbl of oil that would leave CGX with net 60 mmbl at $5 in the ground is $300,000,000 in value, or less than $1 per share.

If you argue they would retain more than 10%.. well they need a full carry but even if they manage to hold on to 15% that is still only about $1.35 per share... after they prove 600mmbl. 

The risk reward is just not what it used to be. Show the markets some certainty though with a solid plan and there should be a nice jump from here.
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