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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 Jul 01, 2024 3:15am
370 Views
Post# 36113038

Unique time to buyback

Unique time to buybackNormally, I hate buybacks. However at the current time I think one is the ideal use of cash. The basic thesis of investing in this company is that having secured a carry, there are a few catalysts that should, as Gil says become a "company maker". That implies a SP far above $.17 USD. As things sit ECO should have have more cash than overhead and any liabilies by a large multiple. This company has two ways of securing future cash; they either farm down existing assets or issue stock. As we wait for farm-downs yet are awash in cash that is not going to be deployed soon why not buy back stock? Say they buy back $750,000 so 4.4 million shares, the run up of drilling tends to make the SP double. The logic being buy back 4.4 mil for $750k then reissue that at $.34 a share or more. I don't think any of us are holding on to this stock expecting a dividend. To me it seems like the right time given we are cash flush and undervalued given future events.

My 2 cents 
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