Theoretical AOI EOG mergerMerging Eco and AOI could be interesting.
it would:
- consolidate the South African blocks
- Allow AOI access to Guyana + Namibia
- Allow for additional talent
- The combined entity would have cash flow and additional acreage/leverage
Could it be pulled off?
- At the right price and perhaps the right contingencies. Eco is cashed up and just waiting on others. This means they likely would demand a premium. If not a premium a CVR, this route would be interesting given AOIs current ownership of Eco.
As a shareholder in both I would prefer they merge and include a long dated CVR or Warrants. This would mitigate risk for both sides while maximizing both sides complimentary aspects.
my two cents