CGX Energy Inc V.OYL

News Release Thoughts

[westcanpride]

Firstly, many thanks to everyone who bombarded CGX/Frontera head offices with emails... it clearly worked.

1) Excellent news that "oil shows" are present in these overlying sandstone packages. How thick these sandstones are is anyones guess. More importantly though, at least we know oil exists in this area of Corentyne. Hopefully a ecomomic discovery occurs in Horizon 23. That seismic reflector definitely looks more exciting now! Hopefully the gas monitors light up like a xmas tree on the rig when they drill through this package in the coming days/weeks. 

2) Its painfully clear this stock was manipulated downwards over the past month for the benefit of insiders. Again, how these asshol*es are not charged with securities fraud I will never know. Everyone is super excited this morning over a 40% share price increase... yeah, we are now back to the share price we were at in early December (a price that was super depressed back then, let alone .88 CAD yesterday). 

3) We must remember Frontera loaned cash to CGX at $1.63 CAD/share for $53.6 MM USD. No way in hell should CGX accept anything less if they need to draw on additional funds to complete Kawa-1. In fact, if Suresh had any self-respect, he should tell De Alba to shove it if he plays hard ball in any additional loan agreements. Bloody oil exists in this well and the major prize is still to come. In many ways, its still crinimal we are only at $1.24 CAD. 

4) Its clear this was not the way either Frontera or CGX wanted to release news from the rig regarding a oil discovery. In fact, both companies should be embarassed that they need to admit that additional funding will be required to complete Kawa-1. Like I said earlier, I do not fault management for taking time with the well to be drilled, especially in a exploration setting. But the fact that they did not plan for having extra cash on hand is truly pathetic (and we know it based on news releases from 1Q-2Q saying how much they figured this well would cost to drill). 
** On this point as well, that FOMO from shareholders who did not want to sell at $2 back in September did not materalize. Yes, we are up nicely right this morning, but one could have easily bought back in this morning in the .90 CAD range. Definitely easier looking back in hindsight, but it sucks management blew the opportunity at really spiking the share price with big news. 

5) End of day, we will see how much of a dealmaker De Alba truly is in the coming weeks/month. He has oil in Kawa-1 and his best drilling horizon is still upcoming. He has sitting as close to a royal flush as one could hope for when discussing a JV deal... let's hope he doesen't flush it down the toilet. I truly do hope he proves me wrong and actually comes through with a good deal for us shareholders.

[jtdd]

I think it's very important now to realize that with a period of renewed silence approaching, we don't fall victim to the inevitable contrarian thinking that accompanies the silence. Investor’s have very short memories and their confidence easily wains due to stretches of silence from the company. The company basically said to not bother them now til they're done. We have to listen. It

[stark15]

harel1976, your posts are laughable....... jtdd....u r asking for the moon from some posters on here.....sadly they will ALWAYS be the glass is half/always empty crowd......just the way it is.

[RHertig]

My glass is empty. I am grateful I am now hydrated and don't have to drink anymore. 

[docsdrillers1]

Definitely feeling a bit better with the News release..not sure what we can safely glean from it but at least we know they have several weeksa left to drill..i agree that if it was a duster they would have moved on by now. Seems now that FEC knows CGX has to raise more monies they once again are in a conflict of interest situation..Someone is still holding the price down which is better for FEC

[Rapsani]

99.638% Assuming you got in around Jan 1999 like some of us.. and assume in about 30 days we finally know for sure, that toal period would have been 8280 days.    Which means we 99.638% through :)  .

[Mat1791]

Lot of good points WCP... I for one, don't want to be invested in a company who would spend their time using hyperbole to support a share price. Let them do their job, and do it right, if positive results and facts our in our future, the share price will take care of itself. If you have faith in the play, pre-results, the share price means nothing.   If anything, the downdraft