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Thanks, Celtic. Very interesting interview on V o x m arkets.
I note the WTE shareholder posts on the Eco board.
Gil has clearly bet the house on the Canje block coming in (Eco will sink badly if it doesn't come in, probably halve, and thus this is a further reason to be in WTE where failure may not lead to more than 20% downside from here?) ; and as I suggested before, Eco know more than the average PI on the likely success here - they've seen all the data, and acted before the Jabillo results.
I would not be surprised to see ECO and JHI merge. At the very least, I think Eco may purchase its second JHI tranche through a share swap.
Glad I bought more WTE yesterday.
GLA
thanks happy sparrow.
I looked into Canadian Guyana stocks
cgx
fronterra (owns aprox 80%? of cgx)
eco, aoi
There are a few choices
Westmount seems to own the smallest amount, but also, by far the smallest market cap
Interview with Gil Holzman on JHI investment @ 8.30 seconds.
https://www.**********.co.uk/articles/galliford-try-eco-atlantic-glen-goodman-67b8830/
Excellent question at 9.50 minutes by the interviewer.
thanks,
Celtics.
I love gil and in contact with him via email for some time now, but he is a known "optimistic"...
On LinkedIn, Gil Holzman has shared a write up done by VOX on the JHI transaction, with a caption from Gil "Exciting days are coming..." including a rocket emoji.
thanks,
Celtics.
Now 7.21% of JHI (see Celtic's post below).
For others, see slide 4: https://www.westmountenergy.com/download/2021-06-07%20Westmount%20Corporate%20Presentation./?wpdmdl=1137
From the website I see that WTE owns shares of
JHI
Cataleya
Ratio
ECO
Can anyone tell me what % of each?
I have read here below aprox 7.7% of JHI
but I can't find the others.
Thanks in advance
Harel - Agree that this transaction is some time in the making, with agreed price set, and funding secured. But I guess the drill is at a point that they know whether it is a dry hole or not? My guess is that they have seen sufficient hydrocarbons to transact the deal. I think that the deal would have been delayed/pulled/renegotiated if there was no sign yet of anything at Jabillo. Supposition, of course. Fingers crossed, as ever.
obviously this transaction has been negotiated before the jabillo spud, terms were agreed and the funding was being solved with AO.
the drill must have reached the point when they had to finalize the deal before any results could be leaked..
my understanding is that jhi are funded for three wells and one appraisal if needed, that means that if jabillo failed they would have to raise funds and not gamble all in on sapote.
The question for me is why JHI would sell a stake to ECO now - seems very strange timing given a current drill with results due in (perhaps) days? If confident then surely they'd wait until after drill results and get a lot more for the deal?
A very interesting short clip (from 5.51 minutes to 6.16 minutes) delivered by Keith Hill, commenting on Orinduik and seismic interpretation in simple terms /no bull$hit - https://www.youtube.com/watch?v=1c-i20PG5LI
Note, you cannot determine fluid quality from Seismic (there was an interview by Gil Holzman with Proactive where he explained that risk in fluid quality). However, Tanager-1 somewhat de-risks that element.
As referenced in the Eco RNS today, both Africa Oil and Eco have been conducting a technical analysis of the Canje block and a a $10M immediate commitment is no small step for Eco. As @ 31st Dec 2020, Eco had $16.35M USD Cash and are raising an additional $4.9M USD to fund this immediate $10M transaction into JHI, leaving it effectively funded for 1 Orinduik cretaceous well in 2022 without further dilution beyond the 184,697,723 Eco shares + 14,945,913 private placement.
Technical analysis of the Canje block has been done by both Eco and Africa Oil. On top of the Bullish use of "low risk" in the RNS headline "Near-term, low risk, exploration drilling catalysts with significant upside", the direct appointment of Keith Hill to the Board of JHI given his Geology expertise & proven success in discovering commercial Oil/Gas (West Africa), and his effective rubber stamping of this $10M immediate transaction in JHI bodes well for how we should think about the chance of success on Jabillo and Sapote. I would be scratching my head if neither Jabillo-1 or Sapote-1 deliver Commercial outcomes.
thanks,
Celtics.
Well said celtic.
Thats why iam baws deep in Westmount canje block alone is potential 10 billion barrels now what is our cut on that.
Plus any strike and the majors will be knocking on JHi door
with a blank cheque.
The deal between Eco Atlantic and JHI Associates is encouraging news for Westmount Energy (WTE). There, are several mentions to the current 2-well drilling program (Jabillo and Sapote) being “low risk”.
From the June 2021 WTE Corporate Presentation, WTE held 5,651,270 shares in JHI representing 7.7% of issued share capital assuming same number of shares as at July 2019. Therefore, total JHI issued shares = 5,651,270/7.7*100 = 73,393,116
Today, Eco Atlantic acquires 5,000,000 shares @ $2/share, in JHI representing 6.4% of issued share capital per RNS.
5,000,000 / (73,393,116 + 5,000,000) = 6.38%.
WTE new ownership in JHI is circa 7.21% post Eco Atlantic acquisition of 5,000,000 shares in JHI. 5,651,270 / 78,393,116.
WTE and ECO have working interests in other blocks, so you cannot make an apple to apple comparison.
Remember, WTE has a penetration in the Cretaceous on Kaieteur block with Tanager-1 well which has significantly de-risked Kingfisher-6&8. CPR on Kaieteur high graded Kingfisher 6&8 with 500MM Barrels and 57% COS. While, ECO has 15% of Orinduik block and enormous upside potential on that block should there be a Commercial discovery in the Cretaceous.
Market Caps
WTE = 144,051,486 shares * 0.12 = circa 17.3M GBP
ECO = 184,697,723 (RNS 24th Nov 2020) + 14,945,913 shares (post placement to Africa Oil & Charlestown Energy) * 0.26 = 51.9M GBP
Not comparing WTE vs ECO, WTE has much lower risk now given the existing market cap but still meaningful upside potential. JHI has 3 more wells funded by TotalEnergies (that includes Jabillo and Sapote) and are sufficiently funded for a new 2022 drilling campaign of possibly 3 further wells (Eco Atlantic RNS highlights that JHI had Net Assets of $46.3M USD as at 31st Dec 2020. JHI now has an additional $10M USD, so post transaction JHI has Net Assets of $56.3M with all else equal assuming low cash burn from the employee salaries and other commitments).
So, in theory, WTE has multiple shots on goal and only requires 1 well on Canje (out of theoretically 6 wells to go which include Jabillo and Sapote) to potentially multi-bag from its current price. Cataleya’s farm out to Hess on Kaieteur block and funding from Elliot also means there are several more shots on goal on the Kaieteur block.
Thanks, Celtics.
Don't forget to add on the new shares. ECO will have 199.65M after this and that's ignoring the 14.95M warrants. So ECO market cap is £51.91 for 1.75% of drills and WTE is £18.73M for 1.3475% of drills. ECO costs 2.77 times WTE, but only has 1.30 times the exposure to the drills, which means WTE has 2.13 times the gearing.
I’ve got quite a lot of Eco shares( for me), and have had WTE on my watchlist for a few months. Bought a few on today’s RNS. I try not to get carried away with oilies- from years of turbulent experience- but I’ve got a good vibe about this....
Soder - not sure you understood my logic?
If, for example, the drill brings $240m to JHI then, pro rata:
the drill brings $17m (7%) to WTE so its shares will go up by 100%. (Mcap $17m to $34m)
the drill brings $24m (10%) to ECO so its shares will go up by 50%. (Mcap $47m to $71m)
I’m not involved here at all. I am in eco. But was coming to see what people thought re jabillo timing. That’s all. Don’t need your attitude thanks.
Soder off and do some research!
Yes but eco has other assets, that including 15% of tullow operated orinduik
Took a punt.
Maybe simplistic but, despite wide spread, this looks a better play than Eco.
ECO market cap $47m for 10% of JHI.
WTE market cap $17m for 7% of JHI (slightly diluted this morning).
Thus WTE is about half the price (17 x 10/7 = 24) for the resulting impact of any discovery?
Well thats a vote of confidence ECO take 10% share of JHI.
And reckon Canje has the same potential as Staebroek.
This has always been my number 1 pick as a multibagger
And i know it will be.
The trades all week looks bad, but was that way for a few months now so i cant tell what its all about.
The stena should reach td any day now.
Talked with the bod, results are not expected prior to mid july.
Crossing fingers, we realy need this one to come through..
Gla