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That was a very interesting article. Thanks Noix
I always thought it was interesting that QP bought 15% of Total (I know in all blocks); It just happens to be the same as Eco share in Orinduik! Its just opinion but have said before that there is more to the Total farm-in than meets the eye.
I would be as bold to predict some kind of deal with existing partners in Guyana.
Maybe Kosmos (additional) with Namibia! IMHO
If someone bought ECO as a company, ECO would still own the 15%.
This link shows those that already have a presence in Guyana offshore and presumably already have State approval.
The Suriname map shows those additional companies that like the address and would presumably be interested.
https://seekingalpha.com/article/4242021-guyana-suriname-basin-competitive-landscape-emerging-new-petroleum-province#
I'm sure there's a political-governmental input each time an oil company becomes materially involved in Guyana. They all will require State approval either formal or indeed informal. I don't believe such a transaction involving the development of an important national asset can be simply left between two private companies.
The docs would likely have boiler plate wording as a minimum around change of control or.material adverse change (MAC) clause. Depending on the transaction structure if one arises the Guyana government could argue on this basis.
The likelihood.of this is minimal as anyone coming in is likely to have the deep.pockets required to accelerate development.
schlemiel,
"buying ECO's stake will surely have to pass the acceptance test from both the Guyanese government "
Or they could go the way of what QP did when buying a slice of Total's share of Orinduik, by just buying a % of Total's interest, therefore bypassing government approval.
Guess it depends on what your value of ECOs 15% would be upon both Jethro and Joe success. Could be very big bucks, imo any offer on those two drills being successful has to be well over £5 share
If Joe is a success, any sale could happen very soon and it maybe we don’t drill any of the other 4 wells, as any suitor would the more ECO drill the higher the sale price
Not sure what to make if we don’t get news tomorrow, maybe the old adage no news is good news
ECO is faced with some important decisions. We know they will receive an offer at some stage for their 15% but the company buying ECO's stake will surely have to pass the acceptance test from both the Guyanese government and ECO's other partners on Orinduik. I don't believe the Guyana government will accept any old oil company muscling in at Orinduik. They'll want the right type of oil company buying ECO's 15%
Eco Atlantic Hires Tudor, Pickering Ahead of Guyana Oil Suitors
2019-07-26 15:30:57.785 GMT
By Dinesh Nair and Paul Burkhardt
(Bloomberg) -- Eco Atlantic Oil & Gas Ltd., the Canadian
company working with Tullow Oil Plc in Guyana, hired advisers to
prepare for any potential approach by suitors before results
emerge from a closely watched drilling campaign, people with
knowledge of the matter said.
Eco appointed Tudor, Pickering, Holt & Co., the people
said, asking not to be identified because the information isn’t
public. The company and its partners started drilling the first
of two wells at the Orinduik Block on July 4, and estimated it
would take as many as 40 days to complete.
The Orinduik Block, where Eco owns a 15% stake, Tullow has
60% and Total SA holds 25%, is adjacent to an oil discovery by
Exxon Mobil Corp., which is estimated to hold 5.5 billion
barrels.
Eco Atlantic didn’t immediately respond to a request for
comment. Tudor, Pickering, Holt declined to comment.
Eco said July 5 that it is fully funded for its share of as
many as six exploration or development wells on the block, in
addition to the current two-well program.
Advisory boutique Perella Weinberg Partners in 2016
acquired oil and gas investment banking firm Tudor, Pickering,
Holt.
To contact the reporters on this story:
Dinesh Nair in London at dnair5@bloomberg.net;