Frontera Energy Corp T.FEC

Is there a disconnect between FEC and OYL

[liquorwolf]

FEC owns approximately 80% of OYL, or $672mm, reflecting 67% of their market cap. If you crunch the numbers $840mm value of OYL or 20% equates to $4,2 billion.  FEC has a market cap of $1billion. So just subtracting the $672mm from $1 billion you get $328mm for a company with a cash flow of $300mm producing 40,000 bpoe a day. FEC is loaded with cash as reflected in their two bolt on acquisions.. Total debt of only $400mm.  

Please give your take on this analysis which will be gladly accepted. Not trying to diss anyone here nor advise anyone to buy or sell.

[kcac1]

I agree with you, wouldn't you also count that with FEC owning 80% of FEC in theory or actuality,  that includes owning 80% of CGX's 66% of the Guyana concessions? So, 80% of CGX's 66% is about 53% and when added to FEC's 33% of the concenssions, it leaves FEC owning 86% of the concessions only leaving 14% of the concessions owned by CGX???? In addition, the loan made last

[kcac1]

I appears to me the disconnent is widening. using C$ to line up with the info above and comparing current market caps. It still appears that you buy FEC and you get 80% of CGX and 33% of the concession for free. The current netbacks on FEC have to be close to $50US or greater, they were $38US in 3Q and they are producing about 40,000 barrels a day. That  thus $2Mil U$ a day and they should

[kcac1]

Liqour W.-What are your and others thoughts on the disconnect today?  I don't think some CGX stakeholders realize that FEC is calling all of the shots, owns almost 80% of CGX and also a thrid of the offshore concessions.  And this is before they get paid back for the huge cost overrun of the Kawa well. FEC constantly refers to CGX as a subsidiary and even has it in their