CGX Energy Inc V.OYL

Re Fronterra shares

[taal]

How is Fronterra going to value Cgx shares in a share swap with Fronterra at $1.00 when they purchased $73million worth of shares at $1.63 this being Prior to the Kawa discovery and have agreed to convert the latest $35 million loan at $3.11...I would say that that absolute floor would have to be $1.63.... I could see Fronterra buying up the remaining share of Cgx but certainly not at this price....If the port gets spun off to a different company then I could see this happening..

[chulo123]

When we completed the drilling of Kawa, CGX’s stock was trading at USD2 and FEC’s at about  USD8, i.e. 1/4 ratio. Today this relationship is 1/10 One of FEC’s biggest problems is that its Colombian assets are at risk because the new president wants to stop oil and gas exploration projects. This generates a distortion of the price today. Although this 1/10 ratio may be fair today, six months

[Harel1976]

i guess you are talking before wei-1 because if wei-1 hit no need for a merge and it fails cgx is worth less then 0, so before wei-1 i hope for you guys there will not be a merge because you will not like the ratio..

[Harel1976]

btw, the mc is still a bublle, about 3 times the rational value, so still time to take advantage of the drop of fecs sp and move for a safe investment with great upside. or take a 50:50 chance of loosing all your money, you are all big boys....

[SportyJ]

Taal, good points. But don't get hung up on the $35m loan and conversion at $3.11. The loan terms can change with the agreement of both parties at any time! You know they are both "independent" companies LOL. Now if Fec/De Alba decided to convert right now at $3.11; well that would be a huge positive. But you and I and everybody knows that's not gonna happen. All imo