Eco (Atlantic) Oil & Gas Ltd V.EOG

Gazania - totals 500 million barrels in 3 targets....

[Proselenes]

Gazania-1 is targeting around 350 million barrels of prospective resources via the two main targets.

Upper is the Namaqualand and below that the Gazania target.

If those targets have oil, they will then do a sidetrack into the Pelargonium target which would then take prospective resources up to around 500 million barrels.

At 60 dollars oil price, a commercial discovery is anything over 50 million barrels.

So all the targets of the Gazania-1 are commercial as a stand alone, either Namaqualand or Gazania or Pelargonium - or if they all come in, its a 500 million recoverbale barrel monster discovery.

[Lonegaurdian19]

Appreciate the geology, finance is missing 

[yixter]

Do they have the funds to drill the well??

[IceDog13]

Yes, they have funds for this well, AND for Guyana if Tullow ever gets there sh&t together.

[Harel1976]

hello canadian "partners', I usually write on lse but thought i'll add to the discussion the new interview of the executive chairman of the african energy chamber: "the eco team are so conservative, gazania is a 900m-1.4 billion boe prospect".. 4 minutes in.. about the financing, eco just released a new presentation, cash balance is 37m$... https://youtu.be/qU9i2tRfneo

[toptiger]

dont think funding would be an issue, we know gazania already paid for, so are you referring to 3b/4b ? or guyana ? could see aoi lending funds or doing a deal for 3b/4b, dont think they are so interested in guyana, seems very hit and miss thougfh they have oil obviously in places aoi about to become even more awash with cash when the equinor deposit gets released now fields have been extended

[Harel1976]

3b/4b will be carried post farm out, 7 majors are interested. The 10m$ deal in which eco accuired another 6.15% and got to 26.15%  of the block is correlated to the farm out so that on a 40% gross farm out eco will remain with 15% while carried. 

[Lonegaurdian19]

They went 2-for-2 in Guyana, turned out to be the wrong depth. This resulted in heavy oil, it proved there is a ton of oil in the northern and eastern part of their block. I've given predictions from everything from Carapa to Kawa and been spot on, feel free to look it up. next move like I've said for over a year is the eastern most part of the block. Of the CPR I'd say 2.5 billion

[toptiger]

yeah, because all of that will happen as planned......sigh and i'm a bloody holder. think guyana is a real lottery tbh, SA not at all.

[Cooper97]

Agree 100%. Guyana has turned out to be quite the dog&pony show. 

[papaloapan]

The AOI "complex" is getting interesting.  I started with AOI, and have since been pulled into Africa Energy and Eco, and the overlaps complicated. I see Eco as near term catalyst (Gazania) and 3B/4/B farmout (after the farmout, the next stage catalyst likely slips forward  few years), and lottery tickets (2nd largest concession holder in Namibia and Guyana). Interesting

[toptiger]

like you, have all 3, though ten times as much aoi, just lower risk and is involved in everything gazania is super crucial to eco, i keep listening to keith hil on gazania and he keeps saying very high chance of success, but really not too sure its that easy, seems to good to be true at these prices 10 bagger (as gil puts it) with very high chance of success ?? think someone somewhere, maybe me

[IceDog13]

Very high chance of success is about 50%. Not exactly a sure thing, but at these prices the potential upside is huge from here. By my metrics, a 6 bagger from here on success. I will take a 50/50 chance at 6:1 odds everyday of the week!

[toptiger]

are saying the terminology of "very high chance of success" is different for the oil industry ?? that would make 0 sense because the outcome is no different 50/50 is an average chance of success very high chance of success is at least 80% and i would say should be nearer 90% +, using terminology from life / statistics he didnt add the caveat "for the oil industry its a very high

[IceDog13]

The average chance of success in the oil industry is about 10%. Gazania's chance of success was reported in an interview at 53%.... very high relatively. Do your own do diligence. If you are looking for a 80-90% chance of success, O&G is probably not for you.

[Nopump2]

What interview? You got the link? TIA

[Lonegaurdian19]

I'd say Eco has now the funding for three catalysts. Ganzania will be drilled, the previous drilling in the block makes it low risk given the volumetrics and known quality of oil il take the reporters word 3b/4b has interest in a farm down carry Guyana which went 2/2 now has much more geological info now before they went 2/2 so their 15% which they can afford. They know where and what depth

[Lonegaurdian19]

Tiger, take a look at the map in Guyana, the slope is where the majority of oil is being found. If you reference hammerhead it is analogous to some of the biggest prospects in the Cretaceous 

[Lonegaurdian19]

Not familiar with the rig or crew but knowing the environment Namaqualand will likely be leaked early. Namibia and SA are notorious for leaking info early