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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

Comment by zagorskon May 31, 2012 2:25pm
211 Views
Post# 19966771

RE: RE: RE: RE: RE: RE: grh525

RE: RE: RE: RE: RE: RE: grh525

        My point is that management sold a 20% interest in the 3 blocks for $10M.    

       This means they placed a value of the three blocks at $50M.   

       EOG's share of that $50M is .7X50 = $35M  or
.58 per share.  
.47 FD   

       QUESTION:  Why sell so cheap if the majors have so much interest in the area and prospects are so good?  Why sell to Azimuth and not a major?   

       A rational answer would be that prospects are indeed very good but political interests had to be satisfied. 

                                                                                           OR                                                                                               

      The majors are not really all that interested since prospects are very risky indeed.    

      If the former, how much more political dilution may occur in the future?   

 

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