CGX Energy Inc V.OYL

Houston, We Have A Problem

[SportyJ]

From Frontera PR today...Guyana: On the Corentyne block, offshore Guyana, Frontera anticipates spending approximately $120-$140 million on the Wei-1 well, which will be funded from existing resources. The total cost of the Wei-1 well (including 2022 pre-drill costs and costs related to drilling delays) are forecast to be approximately $160-$170 million.

From Frontera PR dated July 22, 2022...As apart of the Agreement, CGX will transfer 29.73% of its participating interest in the Corentyne block to Frontera in exchange for Frontera funding the Joint Venture's costs associated with the Wei-1 exploration well for up to US$130 million...

Imo cgx has a free ride for its share UP TO $130m US. You read that different?  Today we learn Wei is forecasted to be $160m-$170m. You read that different?  Let the spin begin. Lol

[Schreibzey]

"As part of the Agreement, CGX will transfer 29.73% of its participating interest in the Corentyne block to Frontera in exchange for Frontera funding the Joint Venture's costs associated with the Wei-1 exploration well for up to US$130 million and up to an additional US$29 million of certain Kawa-1 exploration well, Wei-1 pre-drill, and other costs. " I read it as Wei pre-drill is

[SportyJ]

Schreibzey. Thanks for the cordial reply and I wouldn't expect anything less from you. I've slept since last summer but I seem to remember cgx having a pretty good outstanding Kawa accounts payable at the time. At 6/22/22 I can't think of Wei pre drill exps being that significant. Either way today, FEC just said Wei has a $160-$170m AFE. Oil field inflation I guess but it is possible

[Schreibzey]

You may be right. Latest fins don't capture Q4, but they did say," "Prepaid expenses as of September 30, 2022, includes $5.5 million paid in advance mainly to Schlumberger Guyana Inc. as part of the services required for the Wei-1 well."  if that's CGX contribution at 32%, total would be ~$17m on top of $130 total.  we will have to wait to see what Q4