Gediminas Jasionis
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CGX Energy, Inc. (CVE:OYL) (PINK:CGXEF) Share Price Tries To Recover

by Gediminas Jasionis May 9, 2012
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4oyl_chart.pngCGX Energy, Inc. (CVE:OYL) (PINK:CGXEF) stock price attempts to stay afloat after disappointing drilling data drove it down this Monday.

OYL regained 14% over the first couple hours of trading, but the price action looks unstable and a large redistribution of shares is taking place. Trading continues to be more active than usual. 2.2 million shares changed hands over the first few hours of trading, which is already above the average of 1.4 million, promising an action-full day ahead.

On May 7 CGX announced results of drilling of Eegle-1 well on Corentyne Petroleum Propecting Licence in Guyana. After reaching 4.3 thousand meters the company only found water bearing sandstone reservoirs. That's a big disappointment at this stage because the well is estimated to cost $71 million and the company still needs to raise additional $20 million to have the capital required.

2cgx_logo.jpgTraders are puzzled whether the recent findings would have impact on the deeper Turonian play. Currently there's still Jaguar-1 well, drilled on the Georgetown PPL which CGX has a 25% interest in, to count on for testing the Turonian geological zone.

The company recently underwent a change in management, which further threw traders off track. The Chief Executive Officer Stephen Hermeston has left off effective May 4, and Kerry Sully was appointed in his place until a permanent replacement is found.

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