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CGX ENERGY(V-OYL)$0.90 -0.01

For anyone who thought they knew what a high risk/ high reward play was, you ain’t seen nothing until you’ve experienced what CGX Energy has gone through in the last decade. Some people probably wished a long time ago, they’d just hit their head against something hard and beat this whole CGX saga out of their memory.

After everything from a border dispute and gun ships forcing oil exploration rigs to move off their hoped-for site, to years spent working out the border between Guyana and Suriname, you just think that there’s a movie yet to be made somewhere out there. If only you could figure the romantic angle...but I’m sure it can be found if you are a Hollywood Playwright.

We are now on the verge after 12 years, yes folks, 12 years of one problem after another—CGX is finally about to spud their play...provided nothing else comes out of left field in March.

We would have hoped by now there would have been some heft added to the board of directors of CGX and it is disappointing to see that there’s now 200 million shares outstanding.

But Fred Kozak of Canaccord gives CGX Energy a $2.00 target and writes, “The first well of the Atwood program spud early November on Murphy Oil’s Block 37 (offshore Suriname). The well will test a Turonian target (120-1,030 million barrel potential) analogous to the Turonian targets to be tested by CGX’s Jaguar and Eagle wells.

He continues, “We believe results from any of the first four wells could be a positive catalyst for CGX’s share price, owing to the lack of drilling in the region and the high-impact potential of the prospects.”

David Beddis of Cormark Securities has also written up CGX and gives it a $1.75 target price. But in the report that looks at CGX he writes, “A 100% success case on a 300 MMB (net to CGX) discovery on Georgetown, with no risk factors assigned to the economics of developing this dis- covery (i.e. the unfinanced net present value of a commer- cial development in the current commodity price environ- ment) equates to over C$20.00 per share based on CGX’s current fully diluted share count.