Eco (atlantic) Oil & Gas Share Discussion Threads

[maccamcd] 26/9/2017 10:35

some bunff from Brandon Hill research

"The transaction values Eco’s existing 40% working interest at US$21.6m (13.5p/sh), leaving just 1.1p/sh of value in the current market cap for Eco’s Namibian acreage (after accounting for 2.5p of cash). Given recent corporate activity in Namibia we feel this is too low providing significant scope for a share price appreciation.
In PEL 37, located adjacent to Eco’s Cooper block, ONGC Videsh farmed in to a 30% working interest in July, while more recently, Africa Energy acquired an effective 10% interest in the same licence for US$7.7m, through the acquisition of a 33% interest in a subsidiary of Pancontinental Oil & Gas. The terms of the Africa Energy transaction, when applied to Eco’s 32.5% interest in the Cooper Block implies a US$25m valuation or 15.7p/sh. In aggregate this suggests a fair value for Eco in the region of 31.7p, without attributing any value for the Guy, Sharon and Tamar licences, and implies upside of 85% to the current share price. "

[gwr7] 26/9/2017 09:37

These guys have made a habit of not getting enough for the family silver. That's a poor deal for giving away 25%.

[maccamcd] 26/9/2017 07:37

Wonderful Farmout with Total news!

ECO (ATLANTIC) OIL & GAS LTD.

("Eco Atlantic", "Company" or, together with its subsidiaries, the "Group")

Total Signs Option Agreement with Eco Atlantic on the Orinduik Block, offshore Guyana

Eco (Atlantic) Oil & Gas Ltd. (AIM: ECO, TSX-V:EOG), is pleased to announce that its subsidiary, Eco Atlantic (Guyana) Inc. ("Eco Guyana"), has entered into an option agreement on its Orinduik Block, offshore Guyana, with Total E&P Activités Pétrolières, a wholly owned subsidiary of Total SA (together "Total" and, the "Option Agreement").

The Option Agreement provides Total with an option to acquire a 25% Working Interest in the Orinduik Block from Eco Guyana (the "Option"). Eco Guyana currently holds a 40% Working Interest in Orinduik, and Tullow, the Operator, holds the remaining 60%. The Orinduik Block directly offsets a line of discovery wells recently drilled by Exxon in its Stabroek Block in the Guyana-Suriname Basin, with Exxon estimating between 2.25 and 2.75 billion barrels of recoverable oil.

Pursuant to the Option Agreement, Total will make an immediate payment of US$1,000,000 for the Option (the "Option Fee"), at its sole discretion, to Farm-in to the Orinduik Block for an additional payment in cash of US$12,500,000 to earn the 25% Working Interest. The exercise of the Option must be made within 120 days of completion of processing of the 3D seismic. The survey acquisition was completed on September 5(th) 2017 ("The Seismic Data Report") and processing is expected to take 2-3 months. The Option Fee is repayable in the unlikely event that the Seismic Data Report is not provided to Total by 1 June 2019.

Following exercise by Total of the Option and once the transaction is completed and has received all regulatory approvals, including Government of Guyana approval, the Block Working Interests will be as follows:

Tullow - 60% (Operator)

Total - 25%

Eco Guyana - 15%

In the event that the Option is exercised, each party will pay its pro-rata working interest from that date forward.

With exploratory wells offshore Guyana expected to cost circa US$35 Million, Eco's participating interest is anticipated to be approximately US$5.25 Million per well. It is therefore projected that this transaction, if fully executed, will thus provide adequate funding to meet Eco's share of the costs to drill at least two wells on the Orinduik Block as well as recover the costs of the expanded 3D seismic survey.

Gil Holzman, President and CEO of Eco Atlantic, stated: "We are extremely happy to complete this agreement with Total SA, one of the world's largest oil companies. The deal not only validates the quality of the Orinduik block as a highly prospective license, it also validates Eco's long term strategy - to identify highly prospective assets in frontier basins, with favourable Petroleum Agreement terms, and with world class partners.

"In the event that the option is exercised by Total, the deal proceeds will recoup all our expenses on the expanded 3D program and fund us for drilling a minimum of two wells based on current well costs. We have approximately US$4 million in cash currently and once the Option is exercised Eco will be in a very strong position to be fully funded through the next few years which is expected to include several drill programs. This deal is also expected to introduce into Guyana yet another significant global player and we look forward to working with Total as well as Tullow in the years to come."

[happyholder123] 09/9/2017 10:50

HNR -
TWO wells successfully drilled with abundant oil and gas in samples extracted!
Fracking and FIRST OIL next month!
Don't miss this train!

[penfold6] 25/7/2017 18:54

More info on ECO's block

[penfold6] 25/7/2017 18:51

Another Exxon oil find next to and updip of ECO's Orinduik Block, where one of the targets is only in 70m depth of water, as apposed to the deeper Exxon block.


ExxonMobil discovers additional oil offshore Guyana
July 25, 2017


Exxon Mobil Corp. (NYSE:XOM) has discovered additional oil in the Payara reservoir offshore Guyana, increasing the total Payara discovery to approximately 500 million oil-equivalent barrels.
These well results increase the estimated gross recoverable resource for the Stabroek Block to between 2.25 billion oil-equivalent barrels and 2.75 billion oil-equivalent barrels.
The well was drilled by ExxonMobil affiliate Esso Exploration and Production Guyana Limited and encountered 59 feet (18 meters) of high-quality, oil-bearing sandstone in the Payara field.
It was drilled to 19,068 feet (5,812 meters) in approximately 7,000 feet (2,135 meters) of water. The well is only 12 miles (20 kilometers) northwest of the recently funded Liza phase 1 project on the Stabroek Block, which is approximately 130 miles offshore Guyana.
The Stabroek Block is 6.6 million acres (26,800 square kilometers). Esso Exploration and Production Guyana Limited is operator and holds 45% interest in the Stabroek Block. Hess Guyana Exploration Ltd. holds 30% interest and CNOOC Nexen Petroleum Guyana Limited holds 25% interest.

[penfold6] 14/5/2017 07:14

hxxps://audioboom.com/posts/5915591-alan-friedman-executive-vice-president-co-founder-and-director-eco-atlantic-eco-12th-may-2017

[maccamcd] 02/5/2017 22:57

Why isn't this 40p?

[dorset64] 12/4/2017 15:02

Finished reading the administration document and, after looking a bit further this does appear to be an interesting find.

[penfold6] 10/4/2017 19:43

Guyana buzz grows as ExxonMobil notches third find Monday, Apr 10, 2017

Investors are circling after ExxonMobil’s Snoek well became the third successful discovery in the Stabroek block, writes Tom Rees

WHAT: The discoveries could see Guyana producing over 400,000 bpd in the next decade.

WHY: At least two FPSOs are being mobilised for the Stabroek block.

WHAT NEXT: Eco Atlantic and Tullow are shooting 3D seismic in nearby blocks, as the pace of exploration also picks up in neighbouring Suriname.

ExxonMobil made another oil discovery offshore Guyana last week. The US super-major said it had found 25 metres of “high-quality oil-bearing sandstone reservoirs” at its Snoek well, the third discovery in the Stabroek block.

The Snoek discovery follows the firm’s successes at the Payara and Liza fields in the block, the latter of which is estimated to contain up to 1.4 billion barrels of light oil.

The focus offshore Guyana will now turn to surrounding exploration blocks, such as Orinduik and Kanuku, two neighbouring licences that will undergo 3D seismic surveying this quarter.

Eco Atlantic’s CEO Gil Holzman, whose company has a 40% stake in the Orinduik block, told NewsBase Intelligence (NBI) that ExxonMobil’s recent discoveries had turned Guyana into “one of the hottest exploration areas in the world right now”.

Though ExxonMobil’s head of exploration, Steve Greenlee, has described the Guyanese offshore as a “technically complex play”, Holzman believes more discoveries will be made as companies’ understanding of the area’s geology improves.

“The hit rate is getting better and better, because they understand the basin geology much better. With every well that is being drilled and hit, it’s much easier to calibrate and understand how the geology of the entire Guyana-Suriname Basin works,” said Holzman. Thus far, only one well at Stabroek, SkipJack, has turned up dry.

Eco Atlantic along with its partner Tullow Oil, which operates Orinduik, aims to have completed a 3D seismic survey by the end of the second quarter. Potential drilling targets have already been identified based on a 2D seismic survey, which should make the interpretation process quicker than usual.

“Assuming all goes to plan, we are hoping to have identified our drilling targets by the end of the year and, if oil prices stay the same and the overall market stays the same, we can even be in the position to be drilling in 2018 which is three years ahead of schedule. But of course all these decisions need to be taken with our block partners and the operator Tullow,” said Holzman on the joint-venture’s accelerated plan to unlock the estimated 900 million barrels in the block.

Rising interest
Holzman said there was a buzz developing around the country’s emerging oil industry and that the majors were beginning to circle around its offshore assets.

“I just came back from Guyana two days ago and we co-sponsored a big oil and gas conference there that was organised by the Guyana Oil and Gas Association. You could see by the turnout, you could see by the various stakeholders that had arrived, by the foreign governments and service providers there that the area is quite hot.”

“If you had tried to have this conference two years ago in Guyana, the turnout would probably have been 40 people and most of them locals. But we had 350 people coming, paying a lot of money for the conference and the atmosphere was very vivid,” said Holzman, whose company secured the Orinduik licence, which lies just 6.5 km south of the Liza discovery, in January 2016.

Holzman added that several big names had approached Eco Atlantic regarding its stake in Orinduik but the company was “not in any hurry” to sell part of the block with the 3D seismic programme already fully funded. The company raised the capital required for the upcoming programme by floating on London’s Alternative Investment Market (AIM) in February, raising GBP5.1 million (US$6.4 million).

Although Eco Atlantic owns 23,000 square km in the Walvis Basin off the coast of Namibia, the Orinduik licence has “naturallyR21; stolen the limelight and the company’s focus has now turned to the Guyana-Suriname Basin. The US Geological Survey (USGS) says the basin is the second-most prospective, underexplored offshore basin in the world, estimating crude reserves at 13.6 billion barrels and gas deposits of 32 tcf (906 bcm).

First oil
ExxonMobil announced last month that it anticipates first oil from the Liza field in 2020, by which time it will have invested US$5 billion in the project.

ExxonMobil’s CEO Darren Woods said in a recent investor presentation that the field’s output would reach 100,000-120,000 bpd during Phase 1 with a breakeven cost of US$40 per barrel.

It is anticipated that two FPSOs will be used to develop Liza and Payara, with the Snoek find probably meaning another vessel will also be required. The discoveries that have been made to date, along with future finds, could see Guyana’s oil production peak at around 450,000 bpd in the next decade, according to estimates by Wood Mackenzie, a consultancy.

Although ExxonMobil has held the Stabroek exploration licence since 1999, it only discovered Liza two years ago. ExxonMobil owns a 45% stake in the block with Hess and Chinese state-run CNOOC’s subsidiary Nexen holding stakes of 30% and 25%, respectively.

Holzman said that ExxonMobil had “completely opened up a new play” and that big companies would now flood the sector in Guyana “because the risk is decreasing”.

He added: “ExxonMobil is a big company, they know what they’re doing, they’ll make sure the infrastructure is in place.”

Although Guyana currently lacks the infrastructure to refine the oil that is produced, nearby Trinidad and Tobago could be leveraged as a processing hub, with reports emerging last week that the country’s Prime Minister Keith Rowley had flown out to Texas to meet with senior ExxonMobil officials.

Guyana, which has never produced oil before, is taking “very big steps to make sure [it] can accommodate these big oil companies”, according to Holzman.

“They are very savvy, they are taking their steps very carefully. They have learnt from other people’s mistakes. They consult with everyone to make sure everything is in place by the time it should be,” said Holzman, who has 12 years of experience working in the sector in Africa. “They are all very focused on taking this once in a lifetime opportunity for the nation.”

That said, Guyana set its fiscal terms at a level that would draw in investment in exploration in what was a high risk frontier area. The success of ExxonMobil and its partners in proving prospectivity could see the fiscal terms tighten.

In the meantime the focus in exploration terms will be on Eco Atlantic and Tullow as they execute their 3D seismic survey. Attention will also shift to Suriname where Apache is drilling the Kolibri-1 well in Block 53 and where Tullow has also outlined plans to drill in Block 54 this year.
Their work will go some way to proving whether the play stretches out across the Guyana-Suriname Basin or if the commercial quantities of oil are only located around the Stabroek block.

hxxp://www.youroilandgasnews.com/guyana+buzz+grows+as+exxonmobil+notches+third+find_141340.html

[penfold6] 02/3/2017 11:42

ExxonMobil plans second Guyana FPSO

Executives float idea of 'design one, build multiple' facilities to produce massive Liza find

Noah Brenner
2 Mar 2017 04:07 GMT

ExxonMobil plans to install a second, bigger, floating production, storage and offloading vessel at its planned Liza development off Guyana and sees potential for more, depending on continued appraisal and exploration success.

The US supermajor currently plans to bring Liza on stream through an FPSO that is lined up to be converted by Dutch floater specialist SBM Offshore and will have production capacity of 120,000 barrels per day of oil. It is planned to be installed by 2020, with a final investment decision expected later this year.

On Wednesday, ExxonMobil senior vice president Mark Albers said the company is planning for a second phase of development involving a second FPSO on Liza, with capacity of around 150,000 bpd.
The second phase appears to be scheduled to come on line within a few years of the first phase, based on a graphic in ExxonMobil's Analyst Day presentation, though Albers did not give a specific timeline.

The second FPSO can be supported with volumes already discovered at Liza, as well as at the Payara discovery on the Stabroek block.

ExxonMobil estimates it has found between 1.4 billion and 2 billion barrels combined at Liza and Payara, Albers said, and that resource can support the deployment of the two FPSOs right now. Further exploration success could require additional production vessels, he said.

"The upside is multi-billion barrel unrisked potential — it's quite large," Albers said.

ExxonMobil is currently drilling the Snoek exploration well to the south of Liza and then plans to return to Liza for the Liza 4 appraisal well, which will test the eastern flank of the field and further investigate a deeper oil-bearing horizon found in previous appraisals.

Albers said ExxonMobil is being "very methodical in our appraisal and exploration programme" in order to assess future FPSO-manufacturing plans.

"We have the opportunity to build these vessels to take contractual advantage of 'design one, build multiple'," he said.

[412069] 10/2/2017 16:09

1 trade...news coming.

[pre] 09/2/2017 09:39

Indeed...thanks Keya5000 and here and there..

[here and there] 09/2/2017 09:20

£4million II and the rest retail. Mainly Shard capital clients. i took part in the IPO. Know the company well, been a shareholder for 5 years

[keya5000] 08/2/2017 16:59

Pre both.

I got some in the placing.

Looks a good one.

[pre] 08/2/2017 12:26

were individual private investors eligible for placing when floated or were funds raised with large private investors ? thoughts welcome...

[412069] 08/2/2017 11:44

Guyana & French Guiana are going to be massive oil & gas fields these next few years thats a cert, its finding the oil minnows that have tagged along with the big boys where the moneys to be made.
Total offered HNL £75m for there 1% of the joint venture back in 2012 which HNL refused ho ho no but its still hold that % and after more.
Its the place to be imho.

[tomboyb] 08/2/2017 10:36

Great looking stock -

Tommyboyb -

[keya5000] 08/2/2017 10:32

Try it again...

[cpap man] 08/2/2017 10:30

Thank you keya5000

[keya5000] 08/2/2017 10:27

Should be both?

ECO Atlantic--Next door to Exxon Offshore Guyana
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