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Eco (Atlantic) Oil & Gas Ltd V.EOG

Alternate Symbol(s):  ECAOF

Eco (Atlantic) Oil & Gas Ltd. is a Canada-based oil and gas exploration company with offshore licensed interests in Guyana, Namibia, and South Africa. The Company operates a 100% working interest in the 1,354 square kilometers (km2) Orinduik Block in Guyana. The Orinduik Block is situated in shallow to deep water (70m-1,400m), approximately 170 kilometers (km) offshore Guyana in the Suriname Guyana basin. The Company holds operatorship and an 85% working interest in four offshore petroleum licenses in the Republic of Namibia, being petroleum exploration licenses (PELs) 97 (the Cooper License); 98 (the Sharon License); 99 (the Guy License); and 100 (the Tamar License), representing a combined area of approximately 28,593 km2 in the Walvis Basin. In South Africa, the Company holds an approximately 6.25% working interest in Block 3B/4B and pending government approval of a 75% operating interest in Block 1, in the Orange Basin, totaling some 37,510km2.


TSXV:EOG - Post by User

Post by grh525on Mar 09, 2012 3:13am
326 Views
Post# 19648015

Timeline

Timeline

First wells to be drilled 4 years out. Major wait time for potential investors to even know if oil can be economically recovered. Look at their presentation, all the onshore and offshore blocks will not be touched by drilling until year 4. So for the next 3 to 4 years, a ton of preparatory work needs to be completed to determine best drill locations (Seismic survey, analysis, etc).

 

Don't buy this with a long term outlook - it's too long, especially when no one knows what oil prices will be in 4 years time and if such oil will be economically recoverable given the oil price at that time and supply/demand picture for oil. How much will natural gas vehicles, electric, etc reduce world oil demand in 4 years time? 200 billion barrels in South China sea, how will this affect oil prices in 4 years time? 4 years to wait for first well is a really long time to wait so be cautious on the buy side here.

 

 

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