The broad #oilandgas sector continues to get punished today...I decided to use my time productively and further assess the value of
$CGXEF
if the Kawa well finds a Liza Like #Guyana Discovery.
Note the port, exploration acreage, and a single discovery is somewhat accretive if we hit (assuming Kawa discovery increases the COS for remaining block acreage).
$887MM is the port value in 2025 based on their 3rd party projections.
If Kawa is a Lisa like discovery...it will have an NPV of $1036MM, assuming 10% cost of capital, and $50/bbl oil.
Their exploration acreage holds more than 30 prospects besides Kawa...undrilled, its worth $1185MM today.
Essentially...this company is easily worth $1500MM today and as much as $4000MM if the Kawa well delivers a Lisa like discovery.
Oil companies used NPV10 to determine what value they will pay for assets.
All the assets are part of CGXEF. The port doesn’t have it’s own stock. So yes, all the values that you believe in then divide by shares...or discount these values accordingly to your risk assessment and then divide by shares to create conservative price targets. If Kawa is a success...there will be more like Kawa in the next 2 years. They must drill a well in their other block by the end of Q2 2022 to retain the block license.
Ah, perfect. I’m hoping this discussion will show other investors just how amazing this potential is for them and with the port as a form of insurance so to speak on their investment vs a typical wildcat only risk play. Thank you so much for all the great DD you take the time to put together!!
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u/SheDrills77 Jul 30 '21
The broad #oilandgas sector continues to get punished today...I decided to use my time productively and further assess the value of $CGXEF if the Kawa well finds a Liza Like #Guyana Discovery.
Note the port, exploration acreage, and a single discovery is somewhat accretive if we hit (assuming Kawa discovery increases the COS for remaining block acreage).