"Completion of the transaction further strengthens Eco's balance sheet and enables us to focus and continue progressing our wider work programmes and farm out processes in Eco's asset portfolio in Guyana and Namibia, with no shareholder dilution." |
Fabulous news. Farm down completed.
-They will have about $10m in bank
-Partnered with a super major in SA, fully carried
-Read through value is nuts. There will be only 315m shares in issue after the Africa oil completes. The MC is covered by the read through value on 3B/4B
-100% owned Orinduik, $100m of tax losses, fully covered in 3 D, two heavy oil discoveries aka Hammerhead
-10% of Hammerhead in Orinduik, Exxon is developing it, unionisation will happen as will a farm out deal.
-Walvis basin, biggest acreage, plenty of 3D, plenty of interest, will get farmed out.
-Block 1 SA, they picked up for next to nothing. Has some oil prospects in the deeps and gas in the shallows.
No wonder Berenberg has a 125p price target on this stock
2025 is going to be v v busy |
Interesting rise this. |
Some decent movement today, something going on behind closed doors we not heard of yet or just someone loading up in hope of a killing. |
Cat33 'oilman jim' link above that he plugs everywhere. It's a waste of time. |
What isn't? |
No it isn't it's a waste of time |
https://www.upstreamonline.com/exploration/galp-wants-big-seismic-shoot-over-massive-mopane-discovery-to-cover-shell-and-rhino-acreage/2-1-1685856 |
No, it ain't. |
Yeah, a tad dissapoint8ng at the end there. Hohum. In the bottom draw. |
We go down and Canada goes up 10% |
400-1 on the buy side, not seen that before, must be good. |
Malcy does get it wrong at times , but this time he has hit the target , 120p in time is going to make a lot of us smile indeed !! Have taken a large position today. |
Red army, judging by today's news that looks like a yes. |
Do they have enough cash and runway? |
 Malcy's take on today's deal:
This looks like a really excellent deal to me as Africa Oil, who have been waiting for opportunities to tidy up its portfolio, have canceled their holding in Eco Atlantic (about 15% plus warrants) in exchange for a 1% interest in Block 3B/4B in South Africa. With this non-dilutive deal, the value in my book of the South Africa blocks way exceeds the value on the sell side as it were and management should be warmly congratulated, especially given their low market valuation.
Add to that the fact that Eco are fully carried for two wells on this, one of the hottest blocks in world oil and gas, and also have stage payments to receive on the way you have a massive valuation on this block alone. Indeed I have some numbers that make the value there to be higher than the market cap on its own.
And of course in this RNS Eco have updated on progress in both Guyana and Namibia where they are hoping to farm-out both the Orinduik block and the blocks in Namibia which is also a very popular postcode at the moment. I think that Eco has the makings of a good old fashioned ten bagger, even then there is monumental upside and the shares should be tucked away under lock and key. |
Great business by ECO today, reducing shares in issue by 16% allowing more value for remaining shareholders to be extracted on each project going forward while avoiding the potential risk of the 16% being dumped on the market in the future.
Of course the benefit will only be recognised in time as the Orinduik & Namibia farm outs are achieved and on successful drill results. Now lets push on and get a partner in Orinduik. |
hxxps://www.bnamericas.com/en/news/eco-atlantic-looks-to-close-guyana-farmout-by-midyear |
News needed on Orinduik farm-out. |
New presentation posted today: hxxps://wp-ecooilandgas-2020.s3.eu-west-2.amazonaws.com/media/2024/07/ECO_Investor-Presentation-JUL-FOR-WEB.pdf |
Hold tight - all about to unfold |
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