In September 2017, Eco announced that its subsidiary, Eco Atlantic (Guyana) Inc. entered into an option agreement on its Orinduik Block with Total, a wholly owned subsidiary of Total S.A. Pursuant to the option.Total paid an option fee of US$1 million to farm-in to the Orinduik Block. An additional payment of US$12,500,000 was made when Total exercised its option to earn 25 percent of Eco’s working interest in September 2018.
Following the exercise of the option by Total, the Block’s working interests became: Tullow – 60% (Operator), Total – 25% and Eco – 15%.
In October, last, the Government approved of the Total farm-in on the Orinduik Block, which has the potential for almost three billion barrels of oil equivalent.
One might ask if Total agreed to pay $12,500,000 + $1,000000 for 25% of Orinduick back in 2018 how much would a deep pocketed partner would be willing to pay for Eco Orinduick representing an additional 60% of the block ?
(Since Eco is not gready a conservative valuation would be around 35 millions or so $35,000,0000 maybe $40,000,000 not bad for a start.
Should Total get that chunk (60%) that transaction would place the Big Boy with 85% ....a bit less given Tullow's remaining assets related to a production scenario.