JUNE-28-2021: CANJE LICENSE VALUATION So, an interesting development occurred today involving the Canje License.
In short, Eco-Atlantic (through the assistance of Africa Oil and a PE firm out of NY) bought a 10% stake in JHI associates for $28.5M US (ssumes warrants are exercised).
JHI owns 17.5% in the Canje license. This valuation represents JHI being worth $285M US. The Canje license is JHI's only asset.
If you run the math, this investment is predicated on the Canje license being valued at...wait for it... $1.62B!
As everyone is aware, the Canje license is downdip and outboard of CGX's Corentyne license and Exxon's Stabroek license. The first well drilled on Canje, Bulletwood, resulted in non-commercial hydrocarbons.
CGX holds 66.7% interest in TWO offshore licenses in the Guyana basin. One license in particular, Corentyne, is just a few miles away from three massive world class discoveries (Pluma, Haimara, and Maka). The upcoming prospect CGX will drill, Kawa, is just miles from above mentioned world class discoveries - same source rock, same feeder system, same trapping mechanism, and same play type as Maka.
Discounting the de-risked potential and proximity to other world class discoveries - if I use same valuation for Canje as Corentyne - CGX market cap would be over $1B. Or, $3.60/share US.
If you add in Demarara and assume a similar valuation to Canje - that's another $1B - for a aggregate share price of over $7.00.
GLTA
See below link: https://oilnow.gy/featured/eco-atlantic-farms-into-guyanas-canje-block-with-10-stake-in-jhi/