Eco (Atlantic) Oil & Gas Ltd V.EOG

Potential farmout %

[Lonegaurdian19]

It's looking likely that Eco will farm down to 10% from 20%. Ideally, they could get 2 carried wells for that. I am sure they can get at least one and maybe some cash. 

Gil stated that the cash they'll receive from AOI will be used elsewhere which is exciting. I would guess this means it will be deployed to Namibia. 

Here's hoping they can find at least one Namibian partner and that things get going again in Guyana.

Given the current SP of $.17 USD I think any news could double this thing.

[RoyMax123]

Talking of Namibia...   According to https://www.upstreamonline.com/exclusive/taking-flight-five-well-drilling-campaign-lined-up-for-2023-in-namibias-walvis-basin/2-1-1365844   Maurel & Prom will drill 2 wells starting in Q4 on PEL 44 which is located between PEL 98 & PEL 99 a bit below PEL 100. If they hit then the odds will be better for EOG.   And

[Lonegaurdian19]

Great post!! I hope he pursues a carry and cash model as opposed to just a carry. No idea what those blocks are worth but cash is king. Eco should try to have at least $15-20 million on its books so it doesn't have to do a equity raise to drill the upcoming wells.

[sam0408]

For the record Maurel & Prom won't be drilling anything. They have withdrawn from their Namibian blocks. https://www.maureletprom.fr/en/investisseurs/communiques-de-presse (Activity in first half 2023)

[sam0408]

Eco's Guy and Tamar blocks in the deeper water 1000m -2000m should be of more interest for a farm-in. Gil's indicated that there is. 3D already completed on Guy, so drill ready it seems!

[sam0408]

https://www.energyvoice.com/oilandgas/africa/ep-africa/502144/total-sets-out-drilling-plans-for-south-africas-orange-basin/ https://www.offshore-technology.com/news/valaris-contract-offshore-west-africa/ It's possible this contract is for Total assuming west africa reference includes SW Africa?

[sam0408]

Total would have to be the obvious candidate for farm in to 3B/4B after AO/Eco deal completed. Drill DWOB block then move the drillship to 3B/4B???

[Lonegaurdian19]

In order of size and budget, likely candidates: Exxon Chevron Any Chinese National  APA Total is possible but they proved the basin so they likely won't offer any premium  

[sam0408]

I think a 3B/4B farm-out deal with Total is almost certain. Free carried 2 wells, nothing less! Total's ESIA for DWOB shows area of interest in North of the block right next to 3B/4B area of interest also in the north of the block. Valaris DS-10 booked to undisclosed company mid 2024 for 2 years + for up to 12 wells. Seems a coincidence to me that Total announce intention for up to 10 wells

[sam0408]

Correction: Valaris DS-7 drillship not DS-10.