Peel Hunt repeated its 'buy' 100p a share price targetEco (Atlantic) Oil & Gas: Broker remains bullish after fundraiser
Peel Hunt repeated its 'buy' 100p a share price target
City broker Peel Hunt repeated its ‘buy’ recommendation and 100p share price target on Eco (Atlantic) & Gas Ltd, which confirmed it had successfully completed a £19.5mln City fundraiser to fund its portion of a drill programme offshore South Africa.
The stock, down 15% at just over 30p, would have to more than triple in value to hit the Peel target.
Eco’s Gazania-1 well is targeting an estimated 350mln of barrels of oil equivalent in an area called the Orange Basin, which straddles the sea border between Namibia and South Africa.
French giant Total has had success on the Namibian side. In February, the Venus 1-X well discovered a ‘net’ 84 metres of good quality oil on the Namibian side of the sea border.
Shell also got in on the action with its Graff-1 well.
According to Peel Hunt, Gazania, while south of the other two is in the same geological basin. In fact, historic drilling in Eco’s area discovered light crude.
While Eco is the operator and 50% shareholder, Africa Energy Corp (TSX-V:AFE) (also an Eco investor), Panoro 2B and Crown Energy make up the consortium funding the estimated £34mln cost of the offshore well.
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