CGX Energy Inc V.OYL

Wcp

[taal]

Where do you see the cgx share of first well in Corentyne will be app $16million.They have 66%of the licenses...Fronterra has agreed to pay for 8.33% of cgx cost on the first two wells ....That leaves cgx having to pay 57.67% of the cost of both wells...and Corentyne estimated cost without a Jv is $90 Million...Am I missing something??

[westcanpride]

I see your point taal.  With that, to me at least, Frontera owns ~74% of CGX. So yes, CGX owns 66% W.I., but Frontera pretty much owns CGX and needs to pony up the cash to help pay for this project (whether directly or indirectly) otherwise nothing will happen. CGX needs cash and their largest shareholder needs to provide it for them. My guess is Frontera will pay for the majority costs

[waitingstill]

That is an interesting thought WCP. Perhaps that is what FEC plans with this latest loan. If no JV comes, FEC takes another 25 percent for a full carry for two wells. If they hit and have potential but are not great, the CGX can't pay back the loan and they take over completely by June 2022. If CGX gets a JV, loan gets repaid but they get their pound of flesh up to 83 percent but everyone