FEC’s Guyana prospect
I actually like FEC’s Guyana prospect a lot. FEC has 81.3% Economic Interest two blocks in Guyana: Corentyne and Demerara! FEC has 72.41% interest in CGX Energy and 33% stake in each block. I believe Guyana is still a hot spot for offshore drilling.
Corentyne block
Given that Carapa-1 hit oil, I believe there is a high likelihood that Corentyne will also hit oil; though it will depend on FEC’s execution.
Corentyne’s cretaceous layer may be just like Carapa-1 and contain high quality light oil.
Demerara block
Given that Joe-1 and Jethro-1 from EOG had oil discoveries in the tertiary layers; I’d expect Demerara to have similar results. I’m not particularly interested in high sulphur heavy oil as heavy oil will be more expensive to process than light oil.
source: http://www.fronteraenergy.ca/content/uploads/2020/08/August-2020-Corporate-Presentation.pdf
EOG‘s Joe and Jethro prospect.
FEC currently valued at ~293M CAD and CGX Energy is valued at ~160M CAD today 8/12/20. This means FEC’s equity stake is worth 112M CAD and everything else FEC owns is worth 181M CAD today.
This gets me thinking – is everything else FEC owns worth only 181M CAD?