CGX Energy Inc V.OYL

Finally good news

[oldcompanyman]

Gents,
 
Today’s news are finally very good and helps us turn this page of financial uncertainty regarding Wei cost, which has been the only real matter here for months when once removes the noise.
 
The company is now debt-free and with sufficient dry powder to drill Wei, including any contingencies (especially now that they are accountable for a lesser share of the costs of the well).
 
Much speculation may/will go on what happened behind closed doors in the last months, which is beside the point mentioned above. For those who necessarily want to concentrate on what may have happened, a little hint : we all know the kind of financial power required to develop a deepwater block and hence people have legitimately considered the entry of a major operator (Total, Exxon etc) on this block (but not necessarily the timing).
 
But fact is, the second well of this block was also going to be drilled by CGX, regardless of who would put the money, because the license is on their name, the contracts are on their name, the well design is theirs. In the world before April 2010, major operators didn’t see a big problem in being a non-operated partner for a well drilled by a smallcap exploration company such as our CGX but today the policies of the major companies do very rarely -if ever- allow them to be a non-operated partner for a high-stake exploration well such as this one that has not been designed and operated by their peers (see for instance Namibia, AfricaOil is a partner but it is Total drilling the wells, etc, you can look all around the world to see the same pattern).
 
To conclude, Kawa had already removed the geological uncertainty from the block and today’s deal removes the financial uncertainty; as a long-term shareholder, I’m not asking more after having seen Wei’s targets and size, after Wei someone will come and take over the operational responsibility and this will be the payday for the community here.
 
GLTA,

[Devanand1]

Glad that there is some degree of certainty about the financing

[Miftee9]

Very happy with this news release and relieved we live once more and get a shot at a very high probability target which is massive. Our upside may no longer be $20+ but I believe $5-$10 is achievable. Downside $1 upside $10. I'll take that bet all day long. GLTA. 

[SportyJ]

Best news for me was OCM posting. Best poster this board has ever had, imo. As for the deal being good or bad; the mkt is always a pretty good judge. Glta

[waitingstill]

Agreed OCM. Timelines too tight and pre+allocated budgets likely meant no major coming in on such short notice. But they will come after we hit this monster at Wei.