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Strategies & Market Trends : Dino's Bar & Grill -- Ignore unavailable to you. Want to Upgrade?

To: Goose94 who wrote (130726)	11/29/2022 5:06:42 AM
From: Goose94	Read Replies (1) \| Respond to of 202721

Frontera Energy (FEC-T) JV Partner CGX Energy (OYL-V) are facing yet another drilling delay at their exploration-stage Corentyne block off the coast of Guyana. This time they pinned the blame on the yet-to-arrive drill rig, which is still busy in Trinidad. Rather than drilling their well by the end of September (as originally planned) or by the end of November (as required under their licence), they have received government approval to move the spud date to the end of January. Investors have had to get used to long waits for anything involving CGX. The junior has been operating in Guyana since the late 1990s, but has yet to bring a single well on production. (It did, of course, have to halt work for about seven years during the 2000s because of a border dispute between Guyana and Suriname. This delay -- and the fact that CGX shouldered millions of dollars of Guyana's legal costs during the dispute -- goes a long way in explaining the government's patience in repeatedly extending CGX's drilling deadlines.) Investors were optimistic when Frontera, an experienced producer in Colombia and a long-time shareholder of CGX, got more deeply involved as CGX's official joint venturer in 2018. Yet the delays persisted. The two have drilled just one well so far, in late 2021 (also far behind schedule), and now their second well is getting pushed into 2023. Management of both companies kept up a bright smile in today's update. Thanking the government for its good "stewardship" in extending the deadline, they reiterated their "continued commitment" to "unlock[ing] the potentially transformational opportunity before us." They also made sure to remind investors that their first well made a successful discovery of light oil and gas condensate. (The extent of success has proved hard to measure, as the companies were unable to collect high-quality samples -- let alone run tests -- but they kept that reminder to themselves.) Business Reporter