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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

Post by Lonegaurdian19on May 06, 2024 1:37pm
409 Views
Post# 36025334

Hypothetical

Hypothetical This is just a guess so bare with me.

Say Shell, BP, Chevron or CNOOC take 80% of the Guyana block for a carry til production then a 60/40 repayment like the SA block. Whoever takes over will almost certainly get a right to first refusal.

Then let's say they still two successful Cretaceous wells. The two most likely well prospects are 700 million barrels each.

Here is the tricky part, you'd have to see what happens with CGX to see what the market is willing to pay. Obviously CGX is a goofy company and currently doesn't have a partner with sufficient capital. I've heard estimates of around $3 a barrel in ground.

So with that let's pretend Eco plays the long game, the production would likely be around 200,000 a barrel per day several years out. So 40,000 net to Eco at a $35 per barrel break even. So assuming a $35 net back split between the 60/40 loan for carry.

40,000 X 35 = 1.4 million X 40% = 560,000 X 365 = 204,000,00 per year.

Assign a 8 PE multiple and 400 mil shares outstanding 

You'd end up with a share price of $4 a share.


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