CGX Energy Inc V.OYL

Gulf of Mexico permeability

[westcanpride]

I spoke with a good contact of mine who works Gulf of Mexico plays. Operators today are now targeting thinner bedded silstone/very fine grain sandstone successions with permeabilities well below 100mD at depths of over 20,000 ft (Wei for comparison was 20,450 ft TVD). The era of only targeting massive bedded sandstones with permeabilities between 500mD-1000 mD are over in basins such as Gulf of Mexico. Companies have out of necessity become more agile and creative with being able to produce lower permeable/thinner bedded oil reservoirs! 

Exxon JV obviously will target these massive bedded sandstones first in their Guyana plays... who wouldn't? But for northern Coreyne, these Santonian successions that are being "written off" by Frontera/CGX due to "lower permeability" is just nonsense. Someone will gladly buy these assets are bargain sale prices and make a killing one day... perhaps more than anything this crushes me to see. We should be getting full value for these oil successions in the Santonian and we aren't. Crinimal really... and if this is purely a ploy (still very possible) to manipulate share prices lower for accumulation purposes, then someone needs to be investigated and charged. Either way, this whole situation is just pure nonsense right now. 

If offshore mature basins like GoM and North Sea can produce from lower permeable successions, sure as hell Guyana can as well. Please, if anyone on CGX/Frontera is reading this and has a functioning brain stem, please reconsider the tremendous folly currently unfolding.

[SheDrills]

A big reason it's being written off is lack of proof...they didn't get MDT data. They are focusing on what they can prove.  IMO this means they are focused on achieving a deal now more than ever.  They are willing to truncate the Santonian to achieve that.  It sucks for everyone because they could have saved half the money spent, if not more, had they focused on the Maas

[westcanpride]

They never got the MDT data either on Kawa, yet they have net pay in all four zones there. So are they also going to write off the entire Kawa pay zones also and hope they get lucky on advocating a 13ft pay zone in the Maastrichtian (and the supposed thickening away from the wellbore)? If so, this entire block is in huge trouble. 

[SheDrills]

Lack of data from Kawa is likely why no farmdown occurred after Kawa. Trust me, no company wants to reduce a reported pay zone from 210 to 40 ft....but they did....and no amount of chatter on these boards will get them to change it a second time.   Im just reading the tea leaves and adjusting my expectations accordingly.

[westcanpride]

That's totally fair... and I get it the tool failed over the Santonian and they decided not to wait and spend the extra millions so they could try again. Saying that, that decision to not get the MDT data in the Santonian in Wei is proving to be a multi billion dollar screw up. 

[SheDrills]

If the hole sat open another 10-14 days a new tool would likeky just get stuck. If they had any stroke whatsoever they would have contacted Exxon and asked to borrow their backup tool in exchange to first look at the data. Unfortunately we didn't see any creative solutions.

[a2bman]

"Trust me, no company wants to reduce a reported pay zone from 210 to 40 ft" BS SD, if they didnt want to report a reduce pay zone they never should have published the first one! They're going to have a legal problem over this

[SheDrills]

They destroyed a lot of confidence..amateur hour to be sure...and they haven't said anything technically to make the market believe the Maas and Camp are exciting. A  Wei Technical update might fix that.  Let's pray Houlihan does a better job selling these assets for upside. Someone chose to not include the word "gross" in front of pay in the June PR and I agree it was

[Schreibzey]

I just can't figure out how I/we get on the privileged list to be able to get the data they share to Hannam for their shareholders report? If it's public knowledge, then where is that data stored...it's not in SEDAR. How is it within any rules to discriminate against data distribution?

[soulfire]

Keep emailing on a daily basis demanding the resource report. Eventually they will have to release it if enough of us do our part. I sent a message to the Minister of Natural Resources. He did acknowledge he recieved my message. Don't let these buffoons get away with this BS. It doesn't end like this IMO

[Strawboss1]

Could you please send me the email address    Thank you

[GoodLife60]

CC the Minister of Natural Resources.on the emails you send. May help that they see you contacted the minister.

[ohcanada17]

Can you please provide this email address

[SheDrills]

CGX Energy pays Hannam for their coverage.  You won't get on the privaleged list.

[Schreibzey]

I'm sure there are plenty knowledgeable enough who can run numbers and provide coverage for free if fundamentals are there.

[SportyJ]

SD...so now you, the biggest Santonian propantant of all time, are going to Monday morning quarterback and say we could have saved half the money if not more had they not drilled deeper? Lol  While it may be a fair question, you should educate yourself on offshore Deepwater exploration.  Who else in the Guyana basin has drilled the Coniacian?  I dare say one. Cgx Those that know

[Kelvin]

Yeah Sporty, I remember in the May 2022 webinar, Kevin Lacey said that they had mud problems drilling the Coniacian. Mud turned into toothpaste. That happens when you load it up with barite weighting material to give you the hydrostatic pressure you need in order to handle extreme formation pressures. Repsol Jaguar-1 was going after the Turonian. Didn't make it. Had to stop drilling cause ECD

[SheDrills]

Hey A hole...I have only seen the data they present and now they present a lower number.  I'm not going to sit here blindly and pretend that doesn't change the value proposition.  When information changes, you best update expectations.  I'm focused on the shallow from this point forward.