This is a great deal, lets say Eagle is spudded and 500 mil BBL's of oil are found, insitu value @ 10.00 a bbl is 5 billion $'s, CGX now has all funds to spud Eagle and retain 100 % of 5 bil.

In a JV if CGX had to give up 75 % of the well they would also be giving up 75 % of 5 bill or 3.7 bil so in this scenario giving up 80 mil worth of shares saved CGX 3.7 bil.

This means shorthly CGX will announce they have hired a rig, they just hired Murphys offshore rig manager to run the drilling and CGX will be spudding 2 wells at the same time, now you know why this was a Bought Deal, big boys and big money just moved into this play.