CGX Energy Inc V.OYL

How much more will Frontera take more of CGX?

[westcanpride]

Finally got an operational update this morning. Finally a realistic cost of how much this Kawa-1 well will cost the JV ($80-85 MM USD/$100-106MM CAD). Given CGX owns 66.667% of Corentyne, they are on the hook for more than $50MM USD.... presently CGX only has a $19MM USD loan at the moment and thus one can only guess how they will come up with another $30-35MM USD to pay for their share of Kawa-1. Still rubs me the wrong way we are literal weeks away from spudding and CGX still needs to come up with serious amounts of money. Pretty unreal. 

What will probably happen.... As per the two press releases earlier this year, Frontera can convert the $19MM USD loan into CGX shares following July 15, 2021 and thus increase their holdings in CGX from 73.85 to 76.07%. I imagine they will probably do something similar here and acquire even more shares/control of the company for another $30-35MM USD loan. That or they will acquire another 10-15% of the Corentyne block for literal peanuts (at least to what everyone on this board thinks Corentyne is worth on the open market).  This folks is the genius of De Alba... he has taken literally everything from CGX for next to nothing in the past couple years and will continue to do so in the coming months. If Kawa-1 is going to the next 'big one', CGX sure as hell has not monetized this opportunity worth a damm in the past couple years, that is for sure. 

Port: Scheduled to begin in Sept 2021 and is due to cost $70 MM USD ($87 MM CAD). Given that CGX's wholly-owned Grand Canal industrial Estates maintains 100% of the port, CGX therefore has to come up with a hell of a lot of money for something to actually occur here and instead of just moving dirt around. That or Frontera will acquire a big chunk of the port themselves for next to nothing to help fund the next phase.

In short, with the port and Kawa-1 still needing close to $100MM USD in actual funding, CGX is still in a sticky spot. Money does not grow on trees. See what the coming weeks bring for funding announcements.

[stark15]

I would disagree WCP when u say, "De Alba... he has taken literally everything from CGX for next to nothing in the past couple years and will continue to do so in the coming months"......1st, I don't know how u can predict the future? 2nd, if he were to do as u say, I think he would be in some legal trouble because he, as of Jan 2020 was appointed Co-Chair at CGX so if he were doing

[westcanpride]

Ok Stark, couple points: A) From the initial JV in Dec 2018 to the fall of 2019, Frontera was able to get ~73% CGX shares (or ~212 million of them) for less than $50 MM USD. These are facts and occured before De Alba became Co-Chair of CGX in Jan 2020. Not sure why you are upset at this when I point it out. De Alba was put as CGX Co-Chair in 2020 to make sure Frontera's investment in CGX

[stark15]

Ok WCP, a few points of my own......upset? I am the opposite of upset, I know where we are headed......where might cgx get money for a port? Maybe a JV signing after Kawa-1 hits? Just a thought!! Folks like me? You mean people who have a high expectation of good things to come? Yes, I have high expectations because DeAlba is in charge, because the area has been significantly de-risked, cgx

[Rapsani]

Money for a port - easy - loans ! So many articles on U.S. and others that want to invest in infrasturcture. Lot easier to get loans on a tangible asset (and put a lien on).  Thought I had seen a list of investors a few months ago for a port.   We've put over 10M if our money into the port as I understand.   I beleive we won't be selling shares to fund the port.

[jtdd]

I think if fec wants to continue to "take advantage of" CGX, they will provide another loan of, say, $30M and have the option of taking 20M more shares of CGX. That would put us at about 325M shares. Who the f cares if it's 275M or or 300 M or 325M shares, kind of irrelevant if they hit, no? We all need to remember that fec is going to look out for their best interests first, but

[westcanpride]

I would disagree with your assessment of my posts and overall knowledge I bring to this board stark. Way it goes!  Like you said, end of day, it comes down to monitizing our investments. 

[edmed]

There is a reason we sit stuck at $1.50 you just pointed it out quite clearly edmed

[soulfire]

You have a point edmed. Financing may come with shares at $1.50 Well if that's the case just get over with it already so we can move on. They keep dragging this out FFS.