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Thanks for reposting Jim thats fine.
extrader, totally agree with what you say, it is a very good story and one that should be told
Hi Jimarillo,
It's hard to know. If you go to the podcast (around min 9) , Gil is asked ' what newsflow' ? He replies ' Carapa, CPR, explo plan for 2020'. Then at 10:00 he says he wouldn't exclude news out of Namibia in the next few weeks....'not too far in the future'...
then recites ECO's interests there and arrival of majors etc., farm-ins, farm-outs, etc.
He MAY just be 'bigging things up' - granted - but he's got a good story to tell ….and he's telling it !
ATB
Wallact.."I think Gill leaked the news re Namibia due to the discounted trading at the moment: It what I thought was happening anyway. But I feel that with some big players lining up to drill a farm-in or sale to One or all FOUR blocks could send us somewhere? "
Gil on Nam..."Its the Second hottest exploration area after Guyana.. News coming out on farm outs, new partners, well plans etc.."
I don't necessarily think Gil was referring to Eco pacifically, it came across more the region in general terms. He has said previously that they are looking to farm out PEL30, since Tullow pulled out. However hasn't said at any point they are in farm out discussions as yet......
Hi all,
Just a couple of thoughts : with Gil hinting at the possibility of corporate action in Namibia in the next few weeks, if it's part of a larger deal including Guyana, it would make sense to 'big up' the proven/possible bit (Guyana) to mitigate for the discount (mainly hope value) of Namibia. He's certainly been spending a lot of time on roadshows recently.
I wouldn't rule Exxon out : apart from knowing better than anyone else the likely real value of their/our Guyana acreage, Guyana is in the US back yard....and "America Inc" may want to stop eg CNOOC picking up anything more in the area.
I imagine that's what exSecretary of State Rex Tillerson would be advising....
Plus , given existing mutual interests, there'd be lots of scope for sweetening any deal (at low/negligible cost) with the terms of any future carry in Namibia.
Sometimes a 'blended fuel' optimizes performance....;->
ATB
FWIW- I still think BP and Shell will be very interested in the block. For the money they would need to pay to Eco and Tullow (as I've said many times Tullow happily taking smaller cash upfront for carry later) can give access to potentially 40% plus of more than 4bn barrels for $2-3 a barrel with possibly 50% of that drilled and essentially 2P.
Such a low upfront payment for assets that can be quickly monetized makes other market transactions seem expensive or just this one seem cheap. Hess make clear the production solutions are cash positive in as little as 2yrs. So even a new player could be producing by 2022 and reaping net returns by 2024.
HUR might start thinking about an FID for their Lancaster field in 2022! Shows the difference of bringing in a major.
therefore ultimate question for BOD is whether position ECO for massive short term gain(selling Orinduik interest) and move on to Namibia with deep pockets or even greater profits in long term(20-25 years?) and becoming producer..but this might come at cost i.e dillution for shareholders, very interesting what will be the outcome here
definitely BOD have lead company to a cozy&warm place to be in during potential upcoming global recession and brent prices fluctuating like yoyo
That's 1b over what I was hoping for, so I'll take it lol
I think Gill leaked the news re Namibia due to the discounted trading at the moment: It what I thought was happening anyway. But I feel that with some big players lining up to drill a farm-in or sale to One or all FOUR blocks could send us somewhere?
But agree lets get the family crown jewels sold to QP or Total SA IMO
Ps @500p plus plus plus.
"and even more, Namibia has not added any value to market cap at all yet."
And it won't, until someone, somewhere, makes a discovery in one of the neighbouring blocks. 2020 maybe....?
Let's just focus on Guyana, please.
yes and remember that that doesn't include all the extra leads that they now think would be able to find, according to Gil.
and even more, Namibia has not added any value to marketcap at all yet.
The most recent Competent Person’s report on the Orinduik Block notes that it holds, at best, 3.98 billion barrels of oil which are spread around 10 very defined leads. Should this oil potential be realized, Eco Atlantic, which holds the smallest working interest in the block, would be walking away with as much as US$3.6B.
This was recently noted by Chief Executive Officer (CEO) for Eco Atlantic, Gil Holzman during an interview with Proactive Investors, an analytical platform that provides data on a range of sectors, particularly oil and gas.
https://www.guyanastandard.com/2019/09/17/eco-atlantic-poised-to-earn-us3-6b-once-orinduiks-full-oil-potential-is-realized-ceo/