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Bullboard - Stock Discussion Forum CGX Energy Inc V.OYL

Alternate Symbol(s):  CGXEF

CGX Energy Inc. is a Canada-based oil and gas exploration company. It is focused on the exploration of oil in the Guyana-Suriname Basin and the development of a deep-water port in Berbice, Guyana. The Company, through one of its subsidiaries, holds an interest in a Petroleum Prospecting Licence (PPL) and related Petroleum Agreement (PA) on the Corentyne block in the Guyana Basin, offshore... see more

TSXV:OYL - Post Discussion

CGX Energy Inc > CGX paid lawyers to protect Guyana!
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Post by westcanpride on Dec 14, 2024 11:27am

CGX paid lawyers to protect Guyana!

Maybe Jagdeo needs to be reminded of some Guyana history and the significance of CGX Energy. 

Nice PDF overview article below. If Suriname had been successful, the border would have extended much further into current day Guyana. As everyone can see, a significant majority of oil fields currently discovered (and producing by Exxon JV) would instead be within Suriname possession. 

https://www.guyananews.org/guysur/THE_GUYANA-SURINAME_MARITIME_BOUNDARY_DISPUTE.pdf

The dispute originally happened in June 2020, when gunboats removed personnel from a CGX oil rig. For the next 7 years, CGX paid lawyers and lobbyists ~$10 million USD to fight in international courts. As seen in the article below, Jagdeo himself recognizes how significant CGX was to helping Guyana protect its borders within court. 

https://www.stabroeknews.com/2017/12/19/news/guyana/cgx-payment-of-lawyers-lobbyists-different-from-exxon-bonus-jagdeo/

$10 million USD might not seem like "much"... but from 2007 to today, assuming that money was invested in the Sp500 (with dividends), it would be worth ~$54 million USD in current value. Perhaps more pertinently for Guyana, a large majority of the money it's currently receiving from Exxon JV royalties/taxes comes from the offshore acreage CGX helped defend in courts. 

CGX also provided the basin with very valuable offshore data from wells that weren't successful. 

https://www.newswire.ca/news-releases/jaguar-1-well-encounters-light-oil-but-ended-early-and-plugged-for-safety-reasons-510479041.html

It's easy to mock CGX and say Jaguar was a "bust". But good lord, it still encountered "oil shows" and provided very valuable information regarding pore pressure. You think this data was not used by Exxon JV when they designed their well location, oil rig specifications, and mud weights when drilling their Liza-1 well. Imagine if Jaguar didn't exist... always a scenario where Exxon JV could have under-designed their well and come up short and ultimately never hit the big pay day. Countless examples of massive oil companies who abandoned wells offshore due to pressure and temperature challenges. CGX played a big role here, even if that's forgotten by many. 

End of day, Suresh and De Alba need to approach this 60 day negotiation period with intensity. They need to go through CGX history and remind Jagdeo about the overwhelming significance of CGX in Guyana's oil history. Furthermore, despite Kawa and Wei not being perfect discoveries from a data point perspective, they still add tremendous value to the basin and ultimately country. CGX and FEC combined have pumped over $700 million USD into offshore Guyana. That's not a joke (and with inflation, etc, this easily exceeds $1B USD in current accounting measures). 

Hopefully Jagdeo can reflect over Christmas here and put aside his bluster. I am obviously biased as a shareholder, but even if I was not, it is clear CGX still has played a pivotal role in the countries history.

Comment by Frank007 on Dec 14, 2024 1:28pm
Very well stated ...and as someone who knows this story keep buying more shares in both cgx and Frontera ....I,m pretty sure a deal has already been done with Exxon ....they are building three new fpso,s one happens to be name Jaguar 1 ......coincidence maybe ..but I think not ....
Comment by Kelvin on Dec 14, 2024 3:29pm
Yes Frank and shortly after Repsol/YPF/Tullow and CGX had to abandon Jaguar-1 because formation pressures hit 18.6 ppg equivalent somebody paid $6 million for access to CGX's data room. CGX had 25% wi in that well. The well cost over $230 million USD. Anyway somebody got a great deal on very valuable info. I remember that. Two years later XOM hit on Lisa-1. I remember that as well. People were ...more  
Comment by Kingmosabe on Dec 14, 2024 2:06pm
When Covid hit Frontera / Cgx stepped up with a 10 million dollar donation to Guyana..
Comment by Frank007 on Dec 14, 2024 4:02pm
Both you and Kevin seem to know the story well ....and it was Frontera that made the Covid donation ..7 milion $US ..well said ..
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