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This is bonkers cheap.

Given the immense difficulty in buying shares, the tiny market cap and great asset in a hot sector, I honestly believe they can and should do the IPO at a significant premium to the current SP. If they raised £2.5M at 25p the market cap would only be £8M, or they could raise £3.5M at 30p for a £10M market cap. Neither seems unreasonable given the sector and assets.

Given the immense difficulty in buying shares, the tiny market cap and great asset in a hot sector, I honestly believe they can and should do the IPO at a significant premium to the current SP. If they raised £2.5M at 25p the market cap would only be £8M, or they could raise £3.5M at 30p for a £10M market cap. Neither seems unreasonable given the sector and assets.

No double click again. Pretty sure it's just a glitch in the London SE programming. Let's hope it portends an ECO Cretaceous double strike in 2022. :D

I thought the cost for Kawa-1 and the well on the Demerara block was $80M combined, but apparently it's $80-85M just for Kawa-1. That's hugely onerous for CGX with its 66.7% stake considering it's basically a wildcat explorer with nothing under its belt yet. Yikes.

https://oilnow.gy/featured/maersk-discoverer-in-guyana-for-kawa-1-well-campaign/

And yet again CGX releases zero info on resource figures or COS for Kawa-1. Shocking really when you consider Guyana exploration is their only focus and they are the operator. That said I would have piled into CGX moons ago as the location looks top notch, but sadly my broker does not offer overseas stocks. All the best if you're in.

I agree and it does make sense as Canje is adjacent to the portion of the Stabroek block which contains 21 out of 22 of the discoveries on block, whilst Kaieteur is only near the Ranger discovery and therefore likely more speculative and less understood. That said, it does sound like there is significant potential on Kaieteur. If it was not so hot I would have expected an outside party desperate for any Guyana acreage to have farmed in rather current partner Hess increase its position. They obviously like what they see.

Looks like Tanager-1 has revealed a whole host of potential on Kaieteur in various plays worthy of comprehensive analysis, which is great news. It is particularly excellent to hear that it confirms 'the extension of the Cretaceous petroleum system and the Liza play fairway outboard from the prolific discoveries on the neighbouring ExxonMobil operated Stabroek Block'.

Combined with the positive indications in the Santonian and Turonian, the 16m of oil pay in the Maastrichtian suggests that Kaiteur contains targets in multiple play types, which should make for a very interesting CPR update. It's not surprising Stabroek partner Hess has opted to increase their exposure.

So far WTE's interest in the Joe, Jethro and Tanager discoveries amounts to 0.81 MMBOE. I feel it's only a matter of time before we get the first major discovery on one of our block and this figure jumps dramatically.

Looks like Tanager-1 has revealed a whole host of potential on Kaieteur in various plays worthy of comprehensive analysis, which is great news. It is particularly excellent to hear that it confirms 'the extension of the Cretaceous petroleum system and the Liza play fairway outboard from the prolific discoveries on the neighbouring ExxonMobil operated Stabroek Block'.

Combined with the positive indications in the Santonian and Turonian, the 16m of oil pay in the Maastrichtian suggests that Kaiteur contains targets in multiple play types, which should make for a very interesting CPR update. It's not surprising Stabroek partner Hess has opted to increase their exposure.

So far WTE's interest in the Joe, Jethro and Tanager discoveries amounts to 0.81 MMBOE. I feel it's only a matter of time before we get the first major discovery on one of our block and this figure jumps dramatically.

Thanks Spudz. The Canje deal took me by surprise and I'd not been keeping up with developments on the block so my initital evaluation was incorrect. Having caught up with the research and crunched the numbers it was clearly a great deal for ECO. With a further 12 well Canje drilling program now waiting in the wings it's looking like an awesome move by Gil.

CGX reached C$2.01 today, so a little off the C$2.70 it hit 8 weeks ago. Total shares outstanding is 287.6M giving a current market cap of £333M and £447M at the $2.70 peak. I love the location of the Corentyne drill and have looked repeatedly into the stock on numerous occasions over the past year, but have found it to be a bit of an enigma and very hard to find any specifics about their drills in particular.

They are about to drill Kawa-1 on the Corentyne block and then Marakarapan-1 on the Demerara block, though I'm not sure on timing for the second one. The best information I could find about the prospects was in the following news release, but there are sadly no details for individual prospects. I have searched the Annual Information Document, Annual Report, presentations and other news releases all to no avail. Perhaps Fronterra Energy, CGX's 73.85% shareholder likes it that way.

https://money.tmx.com/en/quote/oyl/news/8874564713687773/CGX_Energy_Inc_Announces_Guyana_Resource_Evaluation_Report

This release states that the Corentyne block contains 27 prospects with total P50 net to CGX of (2,682 + 821) = 3,503 MMBOE unrisked, which gives an average of 130 MMBOE per prospect. Dividing the P mean risked by the P mean unrisked we get an average COS of ((605 + 180) / (3209 + 1209) x 100) or only 17.8%. Doing the same for the Demerara block we get an average prospect size of 85 MMBOE P50 net to CGX and a P mean COS of 19%. So one average well on both blocks totals P50 net to CGX of 215 MMBOE with COS of 18.3%.

At CGX's peak market cap in June of £447M or U$608M this equated to $2.83/BOE unrisked or $15.50 risked. The prospects chosen are likely to be bigger and have a higher COS than the average. Assuming the prospects are twice the average size and COS is around 30%, the figures drop to $1.42/BOE unrisked or $4.79 risked at June's peak market cap.

Note also that the cost net to CGX is $60M.

Using the $4.79/BOE risked figure for Sapote I get a value net to ECO of £28M (14p/per share) risked pre drill and £80M (40p/per share) in the success case assuming 35% COS. Adding this to ECO's £40M JHI farm in market cap and ignoring the (huge) residual value of the farm in I get a SP for ECO of 34p pre drill and 60p in the success case for Sapote.

Please check the maths.

Repsol has confirmed there will be drilling on the Kanuku block in 2022, which is directly adjacent to Orinduik and Stabroek and 37.5% owned by Tullow. It will be interesting to see if Tullow follows through and announces Orinduik drilling pland soon as we are getting the nod for drilling on Kanaku, Kaieteur, Canje and Stabroek for 2022 and Corentyne drilling is getting underway. Ignoring the Roraima, Demerara and Berbice blocks which seem largely dormant, we are only waiting for the nod on Orinduik. Come on Tullow. Let's make it two or three cretaceous targets on Orinduik for 2022. We've waited long enough.

https://oilnow.gy/featured/repsol-planning-to-drill-another-well-offshore-guyana-in-2022-head-of-exploration/

It's just illiquid so it whipsaws on nadda. Market cap is low.

And of course, any strike at Pensacola or Selene and it will be very easy for DELT to raise funds at a very good price and the wells have very good COS figures.

Golden, I believe that's old news as we've been hearing the same thing for years. Also, it only appears to apply to future contracts.

Golden, I believe that's old news as we've been hearing the same thing for years. Also, it only appears to apply to future contracts.

My only though is are we about to raise to farm into Kanuku? As Harel mentioned, Exxon is announcing Kanuku drill plans next week for which Ratio needs funds, so might ECO be about to farm in to the block directly or take part in a Ratio placing to get indirect exposure as it did with JHI on Canje. Africa Oil is ECO's major shareholder and they funded the very recent investment in Canje at 24p, so that's the level IMO. Reckon we will hear imminently.

My only though is are we about to raise to farm into Kanuku? As Harel mentioned, Exxon is announcing Kanuku drill plans next week for which Ratio needs funds, so might ECO be about to farm in to the block directly or take part in a Ratio placing to get indirect exposure as it did with JHI on Canje. Africa Oil is ECO's major shareholder and they funded the very recent investment in Canje at 24p, so that's the level IMO. Reckon we will hear imminently.

?

Great input Harel. Much appreciated. I can't wait to hear the details next week. It will certainly be interesting to see if there is any further investment by WTE and ECO into Cataleya or Ratio. My guess is that either WTE and/or ECO buy shares in Ratio and/or Cataleya to fund drilling or Catalya reverses into WTE.

I can't quite believe how many mostly Exxon operated Guyana drills WTE and ECO have exposure to. WTE could be looking at 20+ wells and ECO 15+ or even 20+ if it also farms into Kaieteur. While CGX soars to almost £500M ahead of its first Guyana well the market seems asleep at the wheel as far as WTE and ECO are concerned. Glad I've build a decent stake in both before it wakes up. This should be a very exciting year ahead for both. GLALTH