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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 Sep 21, 2024 3:55pm
339 Views
Post# 36234866

Comparison

Comparison

Using the existing math of what AOI "paid" ECO for 1% of 3b/4b vs Orinduk. Both are speculative however Guyana is shallow so costs are about half.

So AOI paid roughly $8 million USD for 1% of 3b, so 800,000,000 for the SA block that may hold 4 billion barrels in deep water.

Guyana if I remember correctly should hold around 2-4 billion light in the Cretaceous. It also has half the capex required. So using 2 billion it'd be worth 400,000,000. Then at half the cost it'd be worth 800,000,000. Take into account that Hammerhead is being developed and will have unitization/ has proven commercial oil Id put Orinduik at $ 1 billion.

Eco wants a carry so that's 50 million per well at say 20% so 10 million in cost. 


3 carries (2 exploration, 1 appraisal) is 30 million for 80% of a billion dollar asset. 

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