Eco (Atlantic) Oil & Gas Ltd V.EOG

If they hit

[Lonegaurdian19]

Curious to hear others opinions on what y'all think will happen if they hit on Gazania. Gil has said previously he's not a hard hat guy, IE they'd like to monetize rather than produce. So with that is the last step a single appraisal? It is my understanding it takes roughly 4 years to produce (appraisal, FID, equipment, approval). Ever heard of an expidited well coming online in less than that? The fact this well is shallow and not far offshore is an obvious plus but the process seems slow and quite expensive. Given SA's current need for oil do you think they'd fast-track this?

just throwing this out there. Interested in any and all opinions

[Timberdoodle]

10 bagger whitin weeks lets say before Christmas.jmho....Reco went from .80 to 4$ than 9$ without much !

[Ogopogo007]

Please define "hit" Joe and Jethro were a "hit" at drill time and SP responded. Not a "hit" in the lab once sidewall samples got analysed and SP responded. Hammerhead was a "hit" and Eco didn't even do the drilling. I assume there is some type of production agreement...can the production be sold anywhere or has to be piped to shore for domestic use

[Lonegaurdian19]

The royalty idea is an interesting one. If they got a royalty per barrel on one or all three blocks and folded it into a royalty trust it would change things. You'd offer the near to mid term capitalization of the assets in the stock price and a much longer term holding that potentially would spit out dividends years from now. Not saying they'd do that but it would be interesting.

[dat51or]

Each of us have a slightly different view on exiting. My two cents....no Royalty - it would be 4 years before we saw a return.. I've been in Eco since XOM's Hammerhead and a bit weary of waiting for the prize just around the corner.. I'm ready for the payout sooner than later. So Gazania results in November, then 1-2 or 3 drills in 2023. GH also has indicated that the company's

[Lonegaurdian19]

I agree, I was just thinking out loud. Either way if there is a royalty the NPV of the future cash flows would be a consideration of any aquiror. Wouldn't really make much sense paying the admin fees on a public royalty trust that is 4 years from receiving cash flows. I think Gil has a unique way of strutting deals so who knows. Excited to see what's to come.

[Stampeder]

Doesn't have to be a binary decision.  As mentioned it's the discounted cash flow that would factor into any offer that involved a royalty. I expect, or at least hope, that Gil would focus on a sale of the proven asset and negotiate a minimal royalty just to keep the home fires fueled.

[Lonegaurdian19]

Your methodology does raise a few questions. I think there are a large majority of us here who expect a pay day (been a long haul). As much Gil laid things out as first movers who could monetize assets that were overlooked. I suppose the question is, if that happens does Gil retire in a massive house in Israel? He's never given anything about the long game. I think if Eco grows above

[Stampeder]

I think we are on the same page as to an asset sale vs a sale of the entire company.  Five years ago when I started with ECO I thought if Guyana was successful there was a very good possibility that ECO would no longer be around.  But now with more tangible prospects on the horizon I am starting to think of ECO beyond Gazania and what my my own response will be whether or not the

[Lonegaurdian19]

It will be interesting. If things go well you have to look at things from an Africa Oil umbrella, with stakes in Impact, Africa Energy and Eco, the South African and Namibian assets might get bundled by a single major. I would think Africa Energy and Eco would work together if Gazania is monetized. Then Africa oil and Eco would be working together to farm down the other block. Across the Atlantic