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Bullboard - Stock Discussion Forum 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... see more

TSXV:OYL - Post Discussion

CGX Energy Inc > Re Wcp
View:
Post by taal on May 08, 2021 7:47am

Re Wcp

Sorry but don't agree with your scenario as far as any major not paying a premium as Oil Run had suggested.. Companies JV on most large drilling ventures to lower thier risk and do quite a bit of wildcat drilling in new Frontiers. Are you trying to say that if a major was to neg . A jv say with Fronterra on a wild cat well in a new frontier ...lets just say for argument sake they would want 60% or more of the play for financing the well.. That they could negotiate the Same terms in Guyana with massive oil discoveries just a stones throw to the West and to the East of them.... Is Fronterra that foolish? And if the do hit oil on thier own are you suggesting that most majors would Not be interested in partnering with Cgx at a Premium.. Thats right a Premium to what they could have negotiated prior to drill results...Yes of course there is a risk there for Fronterra to go it alone ....In case of a miss... But I a very confident they are willing to take that risk ...if thier deal is not in thier best interest.
Comment by westcanpride on May 08, 2021 1:26pm
I see your point taal... guess my reply is this... what financial leverage does Frontera have in the event it does discover oil in Kawa-1? Let's say a new JV partner joined along and wanted to fast track a FID on Kawa-1 discovery without any other exploration wells being drilled elsewhere (which would never happen, but let's play along). We are easily looking at $4-5 Billion (using Exxon ...more  
Comment by OIL_RUN on May 08, 2021 3:17pm
Westcanpride - If a commercial discovery is made and validated through appraisal, Frontera/CGX should be able to establish an RBL (reserve based lending) facility to cover future development costs. This is the same path Tullow and Kosmos took when they developed the Jubilee field offshore Ghana in 2005. Proven reserves will eventually be added to the CGX/Frontera balance sheet and can be ...more  
Comment by ljmorin on May 08, 2021 4:43pm
Let's just hit some good commercial light oil and we'll worry about all those other terrrible things they'll have to deal with later. After almost 23 years this will be coming to a close for me in the next 6 months one way or another. GLTA, 
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