RE: RE: RE: RE: Analyst Coverage Dave, everyone knows that offshore drilling is risky business but this is about a massive valuation discount for EOG compared to others (most likely because the company is not widely followed). Although risks offshore Africa are less than where CGX is drilling given that more wells were already drilled offshore Africa and more available technical data. In coming months when more wells are drilled around EOG area, the blocks will become more de-risked as the technical data becomes more available which enables better drilling targets to reduce risks. By the way, going back to history, North Sea didn't get any discovery until over 70 dry wells were drilled but look at it today, success is more than 50%. It's all about an area getting more explored and there's lot's of drilling scheduled to happen around EOG area before they even need to drill, so at that time, who ever buys EOG will have better success percentages. Given that they are the second largest land holder in the area, the technical data that their partner Azimuth brings to the table will help a lot in trying to identify best targets, so risks will be lower (Azimuth has access to the world’s largest multiclient seismic library, to leading edge geophysical expertise and to 85 subsurface specialists distributed in around the world).
Of note, check out what the same Gustavson report said of CGX probability of success was (5%), but given Tullow discovery 500 KM away, basin is further de-risked?
https://cgxenergy.ca/cmsAssets/docs/archived_pr/CGX%20Press%20Releases%202008/Press%20Release%20-%20Jan03-08.pdf
Offshore Namibia ten times better than Brazil for oil?
https://whiskeyandgunpowder.com/could-namibia-be-ten-times-better-than-brazil-for-oil/