With Brent oil prices approaching $90USD and natural gas approaching $3USD, most O&G companies are making fantastic free cash flow for their investors. Even Frontera, they are making great cash flow at these prices. Biggest difference is that other companies actually return their cash to investors via programs like dividends.... Frontera has used most of their free cash flow these last couple years to fund Guyana offshore operations.... and hence why their share price sits at less than $11CAD/share. Even the share buybacks have slowed down considerably since most of their free cash has been gobbled up by these overcost wells in Wei and Kawa.
It's great to gamble/take chances... but Frontera has put a hell of a lot of money into Guyana (relative to their market cap) and have not delivered anything in return to their shareholders from a market value perspective. For guys like De Alba to continue saying they have added value for the shareholder is a big joke at this point.
As much as Frontera management might love to continue spending in Guyana, my guess is that their biggest shareholders (like Catalyst) want to exit ASAP. Like mentioned before, I really hope they don't turn down a fair buyout/JV deal because they have some stupid arbitrary value in their heads that no one will realistically deliver. Guess we wait and see what they release Thursday night.
My sincere guess is that when it's all said and done, its going to be the government the brokers a deal. They want competition with Exxon and they want to expand their oil business further (which is nice to see also). They realize at this point how utterly useless Frontera/CGX truly are and probably want them gone sonner than later. Let's just hope egos and stupidity doesent get in the way of a deal here.