CGX Energy Inc V.OYL

License Thoughts

[westcanpride]

Having looked at online MD&A, in addition to previous new releases, its pretty clear CGX let a wonderful opportunity in Demerara (and lesser degree Berbice) get flushed down the toilet. Like seriously, this is the best the glorious 'dealmaker of the year' could do? Pathetic and embarassing does not even begin to describe what has happened today. 

To me, De Alba is acting reckless and is showing very clearly he has absolutely no idea what in the hell he is doing. His hardball antics may work in other industries, but its painfully clear he is way out of his league in O&G... he has been a massive failure at Frontera and he is now screwing up a glorious opportunity in Guyana. 

End of day, anyone with O&G experience will tell you all companies need readily avaiable cash to survive... especially when drilling costly offshore exploration wells. What did De Alba do... he literally went for broke instead and drilled Kawa-1 massively overbudget. Instead of leveraging that opportunity (i.e., farming down and getting much needed cash for additional exploration/appraisal wells), he got greedy. Unfortunate for him (and more importantly us hapless shareholders), Kawa-1 encountered way more condensate instead of light oil and wasn't able to gather key information due to borehole conditions. As such, no one in the world knows how Wei-1 will be drilled from a financial perspective (including the government as we can now see)... and as we saw today, large swaths of offshore acreage were flushed down the toilet to satisy government demands since neither CGX or Frontera have the funds to drill exploration wells on this acreage. 

Mr. Jagdeo has literally done everything in his power, among other government officials, to keep CGX alive... and these jokers still fu*ked it up. 

Let's hope like hell Mr. Jagdeo can negotiate a JV deal with a major National Oil Company and bail out CGX for one last time... because lets be real, the current Frontera and CGX management are more useless than ti*s on a bull and Mr. Jadgeo probably knows this better than anyone.

[Schreibzey]

How do you sell an entire business when you have two outstanding drill commits within the short-term? What major signs up for that risk profile? None, why do you think there hasn't been a drill yet. Come on WCP, how can you be so sure De Alba wants to be in this long term? Where has he ever stayed long term? Farming down implies he wants to be around for a while, what capital market guy from

[westcanpride]

Schreibzey, I respectfully disagree with some of your assessments. But that is what makes this board worthwhile, constructive discussions. My thoughts to some of your points below.  A) How do you sell an entire business when you have two outstanding drill commits within the short-term? What major signs up for that risk profile? - I would ask then, what was De Alba and Suresh, among

[Duderrr]

You guys both have valid points. Although I value WCPs well thought out and often critical point of views, I'm going to have to side with Schreibzey on this one. I've been a long term OYL holder btw.  Yes, mismanagement got them to the point where they were  going to lose these leases next year, but we've know that for ages. For that reason this shouldn't be considered

[waitingstill]

Good points guys. I noticed this specific quote from the NR. . The joint venture is moving ahead rapidly to advance our program and unlock the potential of the Corentyne block, for the benefit of all stakeholders. To do so required a collaborative effort to resolve outstanding commitments for the Demerara and Berbice blocks and we are appreciative of this agreement. We are also engaged with the

[Ermosp]

This all seems pretty straightforward. Cgx had to drill 1 holes in Demerara in a year to keep it. They have no money to do so and no JV on the horizon to get that money, given Kawa wasn't proven commercial. The gov't saw writing on the wall, and asked for licenses back early, cause they can.CGX had no choice but to fold. everything else is just spin