CGX Energy Inc V.OYL

Bounce

[Toucan1234]

With news that all new agreements/leases will be subject to more stringent terms and significantly less profits. CGX looks like a much better deal now. Especially with eminent drilling soon to occur in a very good prospect.
Not sure how many shares will be available for this 
opportunity.

[simonx72]

I don't necessarily agree. If they discover oil and move to production, the new terms apply to CGX in a new production license. Even if they sell the company before production, the new buyer will take the new terms into consideration. So actually reduces the attractiveness unfortunately 

[SheDrills]

Even though the new terms reduced my model project from 25% to 22% IRR, the terms are decent and the acreage is world class...still a top exploration play irregardless of what sized company farms in.

[Toucan1234]

There are a few other points, institutional knowledge, local goodwill, located juxtaposition to two known finds, test well already drilled, presumably good seismic data and location in clearly non-disputed territory. Oh and getting ready to drill soon (rig booked).

[BoykJurko11]

Yes and the only downside risk is geological risk. My reference point. No local political risk like Chavez in Venezuela. no geopoltical risk like some foreign entity is gonna affect capacity to deliver hydrocarbons, no financial risk because the cost if the well is in exchange for future working interest. So most risks have already been mitigated. For me? Just hit 100 million barrels baby! That

[SheDrills]

They already found more than 100 MMboe...likely need more than 200 MMboe for a stand-alone and I think they found that too based on pay height & closure area for Kawa. The issue we have is that they haven't published it...they stated they would update reserves assessment after Wei.  Next week I'm going to try to convince them to update here considering Wei might not be finished

[AnMar]

I don't recall seeing 100 million barrels discovered? Are you speculating, or did you read that somewhere?

[SheDrills]

I calculated it using the published information. It's something one learns in reservoir engineering.

[AnMar]

Oh really? Does one also learn to invest when studying reservoir engineering or is there a special class for that?  I was merely pointing out that you were speculating, maybe you missed that part.

[BoykJurko11]

Yeah I've mentioned linear algebra a few times hoping that I could draw some reservoir experts onto this board. No luck. In linear algebra you learn that if you have more unknowns than equations then you can have an infinite amount of non-trivial solutions as opposed to the trivial solution.Applying that to this play you can have a particular result caused by an unfinite amount of inputs or

[westcanpride]

Hi SheDrills, They most likely did find greater than 100MMboe... however, doing a in-house (or even third party) technical calculation will be bloody difficult for many reasons... below are some of my thoughts.  a) 228 ft of log pay. This is great, but unfortunately many of the sands are very thin in nature (ie., not blocky and greater than 10ft in continous thickness) and occur over