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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 Jan 15, 2025 10:30am
212 Views
Post# 36404905

Technicality?

Technicality?

The JV has stated the have prospective resources (PR) in the Maastritchian zone. 

PR Definition: quantities of petroleum which are estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. 

How can we have "undiscovered accumulations". The JV after all did drill two wells and disclosed discoveries. By definition, PR can be classified when "potential accumulations lack evidence of potentially recoverable hydrocarbons"... examples of this include inconclusive well logs, no tests (DST) or no samples. 

hmmm... I seem to recall that management was adamant they didn't want to spend the extra money on getting new tools to gather fluid samples in Kawa. Instead they used gas chromatography. 

At any rate, it's clear the two external labs who estimated the oil in place for northern corentyne didn't have enough hard data to ultimately classify it as contingent resources (ie, discovered). As a result, we are left with prospective... too many unknowns. 

https://oilnow.gy/featured/authorities-say-cgx-has-been-treated-fairly-insist-no-dispute-exist-with-company/

Seems like the government, in the article above, is using Repsol as a case study. Repsol didn't discover anything! We did... unfortunately, because management was too stupid/cheap, we didn't get the proper data from the reservoir horizons. As such, we are left with a undesirable PR classification. 

End of day, would not shock me if the government is using this terminology as a way of fuc*king over CGX and FEC. After all, they never actually "discovered" anything as per there classifications. 

 

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