JAN-11-2019: ANALYSTS TIPS ECO-ATLANTIC W/ 140% UPSIDEThis is the 2nd analyst report (published today) that underscores Eco-Atlantic's 'transformational' upside position offshore Guyana. Article is below:
Berenberg's evalaution of Eco-Atlantic's 15% interest in Orinduik follows:
- un-risked upside £5/EOG share; or, £795,976,085 in market value
- risked upside of £1/EOG share; or, £159,195,217 in market value
Side note - EOG current market cap evaluation is CAD $133,723,982; or, USD $100,292,986 - at the time of writing this post.
If we use the same evalaution principles used below by Berenberg to assess CGX (assuming 66% interest in the block, 116.2M share out, USD $6.8/bbl, and there is comparable resource base between both Orinduik and Corentyne) - CGX's valuation follows (in USD):
- un-risked upside US $38.64/EOG share; or, US $4,485,888,000 in market value
- risked upside US $7.73/EOG share; or, US $897,177,600 in market value
Side note - CGX's current market cap evaluation is CAD $44,118,881; or, USD $33,089,160 - at the time of writing this post. Hmmm....
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Eco Atlantic Oil & Gas Tipped for 140% Upside as Guyana Exploration Wells Come Into Focus
Jan. 11, 2019
Berenberg highlights that Eco is about to embark upon what could be a
'transformational well campaign'. Berenberg has opened a
‘buy’ recommendation on Eco Atlantic Oil & Gas Ltd (LON:ECO) and described the AIM-quoted firm as ‘
the only pure-play on one of world’s the most attractive exploration hotspots."
With a price target pitched at 110p, Berenberg suggests
some 140% upside to the Eco share price (before today’s note), though in Friday’s deals it was up 3.5p or 7.6% to 49.5p.
Pitched at 110p Berenberg’s target is some 140% upside to the Eco share price (before today’s note), though in Friday’s deals it was up 3.5p or 7.6% to 49.5p. “Partnered with Tullow Oil and Total, Eco will embark on a
potentially transformational exploration programme starting in Q2 2019, launching a multi-well campaign on the Orinduik block, next to Exxon’s Stabroek block,” Berenberg analyst Ilkin Karimli said in a note.
Exxon’s major successes at Stabroek has been the driving force behind the Guyana excitement. The US oiler has found billions of barrels of resources in a faultless series of exploration wells offshore.
Eco has a 15% interest in Orinduik which is the neighbouring block, and, importantly
it has well-funded, experienced partners to push the high potential project forward. In Berenberg’s note, Karimli highlighted: “The Exxon-led consortium has made 10 discoveries in the neighbouring Stabroek block, with total recoverable resources of more than 5bn bbl. “These discoveries, currently in development, may deliver upwards of 750kbpd of production by 2025, making Guyana one of the largest oil-producing nations in the world.”
“Eco and its partners will be
targeting over 1bn barrels of gross unrisked resources in 2019 (Eco has a 15% working interest). We estimate total un-risked upside for Eco could be over £5 per share, compared with our risked NAV of £1.1 per share.”