Post by
kcac1 on Aug 13, 2021 9:20am
New Presentation
https://www.fronteraenergy.ca/content/uploads/2016/10/August-2021-Corporate-Presentation-110821.pdf
This sure a strange one, FEC owns about 75% of CGX, and that includes owning 75% of CGX's 66% of the offshore concessions. Add to that, FEC owns 100% of their 33% of the offshore concessions. Add to that they have options to buy more and with that $19mm loan they have a lien on all CGX assets. FEC is calling the shots at CGX and now refers to them as a subsidiary.
My guess is that FEC gets more of the concession for paying for the Kawa drill. I think they would have to announce how CGX is paying for their 66% of the well before it is spudded. It is very material.
CGX is totally broke with about $12mm in borrowed cash and they currently owe about $20mm in current bills.
To see the market cap of CGX be more than FEC seems to me that no value is being given to FEC for their large marjority ownership of CGX. Like you buy FEC and you are getting most of CGX for free.
However, by FEC owning most of CDX's shares, there are not many shares left to trade and if Kawa hits, the shortage of CGX shares should make it fly.
Like Many, I own both companies and traded back and forth a little but now close to 50/50 $$wise and I think I will just hang tight at least until we find out if more of the concession is given up by CGX.
Comment by
Jbadboy28 on Aug 19, 2021 4:24pm
Thanks for your research...I myself own both companies