Frontera Energy Corp T.FEC

HOW HIGH CAN CGX GO

[liquorwolf]

For academic purposes, say they hit 2 billion barrels, CGX will ratio wise be entitled to 280mm. Say $5 per in the ground or, $1.4 billion, 300 mm shs, say $4.66/shs. Then FEC will be entitled to 1.720,000 bbls at $5 or $8.6 billion 100mm shs or $86/sh. So a onservation estimate of 25% would put CGX$1.15 and FEC at $23. Comments welcome.

[bullishdude]

Hi Liquorwolf, My math is slightly different (a lot). CGX has 66.7% of the block. FEC has 33%. So if the prospect identifies 2Bn barrles @$5US/bbl then the CGX marketcap = 0.667* 2Bn x 5 x 1.25(exchange rate) = 8.3B C$. Total shares CGX ~350M (including warrants). So NAVPS = $24. But we all know that the market only gices 40-50% of NAVPS. So should expect a price of C$10-12. FEC: 33.3% of the

[Lovedale]

Dont forget that Frontera own around 80%of CGX. This will have a big impact on Fronteras value.