Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Eco have successfully drilled a non-commercial well in the area as operator! Don't see any issue myself.
South Africa is a broken country- regular electricity blackouts, billions of $ spent on coal imports and an election looming.
Namibia is now sitting on billions of barrels- SA needs to get Total/Qatar on side.
Https://oilprice.com/Energy/Energy-General/TotalEnergies-South-Africa-Ambitions-Wise-or-Risky.html
Is this local to 3/4b and does it affect eco, sorry haven't looked at the maps of where eco are actually drilling, Sounda like grief coming eco's way
This news hit the TSX hard yesterday.
Exxon & parteners
drilled circa 4 wells in Hammerhead so in my view there must of been a discovery of some kind and Hammerhead was on the short list for FPSO but was relegated I think due to other discoveries.
Exxon have not disclosed and data on the Hammerhead project (I think), however the Hess CEO did mention the Oil may be heavy in a meeting but that's not not all bad news. That said they did invest to drill multi-holes (appraisal)?
So I share a hope that cross production could be achieved commercially. And I ask what would that do for ECO valuation?
My dream scenario for Orinduik is a three-way agreement with Eco, ExxonMobil and a heavy oil specialist, with the latter developing Hammerhead, Jethro and Joe while ExxonMobil drill a couple of Cretaceous prospects.
As for 3b/4b, Total's drill schedule may depend on which block get their environmental consent first. The 3b/4b application went in a year ago, with Total's application for their other blocks some months later I believe.
According to Gil we have nine companies vying to farm in to Orinduik and target spud in 12-18 months..... I'd expect that to be slightly delayed but 3/4b drilled sooner.....
reading between the lines and sifting the tea leaves...
Is it realistic to expect a drill at 3/4b in 18 months time?
Information implies we should get info on Orinduik next 3 months. If the new operator is Exxon then this will be very good news.
Remember Total are the operators in 3/4b so would guess spud price could be IMO anything up to 100p.
We don't know any dates yet but who knows maybe Orinduik before 3/4b; lots of dead time though the interest will come in time.
In all honesty I cannot see us being above mid-teens on first spud. We need positive Guyana news and we need to hit Oil off Namibia.
Risk appetite amongst the Aim brigade for drilling is subdued to say the least!
I'm still in LTH for a sizeable chunk of cash average of +20p... waiting very patiently
Guys where do you see the share price on just drilig here? I'm planning on a very large investment quite like eco but also want to play it safe aswell as be able to say a long term investment has yeilded something
Understand nothing is certain but market sentiment goes along way too,
Rough guesses plus those that have been here know the history what's your expectations once drill date is appointed or we go into drilling
Thank you
Even after a farm out. I've took the opportunity to add a few over the last few days. 9.19p & 9.2p today are buys rather than sells. Its a long time since I sold half my holding at 161p, having bought around 19-22p. Time will tell, not perhaps another Serica, but I feel patience will be rewarded.
All we need is two multibillion discoveries and a carry through production.
In reference paper: « The offer is worth up to approximately $64 million, which implies a valuation of $805 million for 100% of the issued share capital of Impact. » Reminder : Impact has 9.5% of Venus.
If we use this deal as an analogue (same region, play and operator) this would value Eco 6.5% stake at 550M$, as compared to a current market cap of 35M£ (45M$). These numbers provide an order of magnitude not a precise target.
Why 12x, where is Eco in this?
This deal provides a good analogue and indicates a potential 12 fold share price increase for Eco.
https://theenergyyear.com/news/africa-oil-in-bid-to-up-stake-in-namibias-venus-discovery/
Gruvgunnar, thanks for your reply, and everyone elses input here,
Gruv
Was lucky enough to have a chat with someone from company this week.
Think the farm out is a great deal and the cash element is vital in negotiations on other licences as like Gil said we can clearly say no rush.
6.5% of possibly a 4bn + barrel field and a carry on drilling, which if there is a find can be sold or contribution funded by PE/RBL is a potential game changer.
The carry provided by Total/Qatar is up to $216m a chunk of cash upfront and with the knowledge they have on adjacent blocks they would not be laying that down lightly so clearly have great confidence.
I'd imagine the first target will be sizable and net to Eco 30-40m barrels. If successful that is significant intrinsic value as well as proving the play, with the value longer term.
One of the slides in Gills presentation this week suggested drilling in South Africa and Guyana in Q1 & Q2 2025, so if all goes to plan then its not too far away. We should get news ahead of that for any farm outs for Guyana and Namibia
My 9.61p transaction was blue on a day of no significant volume.
Galp Energia’s share price surged almost 7% on Friday following news it has drilled a successful appraisal and exploration probe on its significant Mopane light oil find in Namibia’s Orange basin and is now set to return to the discovery well to carry out crucial production tests.
The Lisbon-based player has not yet revealed the size of Mopane, but the fact that the appraisal well lies eight kilometres from the discovery probe gives a good indication of the find’s big areal extent.
The company’s stock price increased 6.67% from Thursday's close to hit €15.55 ($16.93) on Friday morning at the time of publication.
Namibia’s Orange basin is a hive of drilling activity at the moment, with Shell having recently spudded an exploration probe called Enigma-1, while TotalEnergies is still on site at its successful Mangetti-1X well and also continuing operations on its Venus-2A appraisal well.
Galp said its Mopane-2X probe in Petroleum Exploration Licence 83 hit a “significant column of light oil in reservoirs of high quality”.
The well had three goals – to appraise the original discovery, drill an exploration target and to drill a deeper objective.
According to Galp’s brief statement, the “AVO-3 exploration target, the AVO-1 appraisal target and a deeper target were fully cored and logged”.
Namibia President Nangolo Mbumba — who assumed office after the death last month of his predecessor Hage Geingob — will hope the Orange basin keeps on giving.
It stressed that the appraisal target found “the same pressure regime as in the Mopane-1X discovery well located approximately eight kilometres to the east, confirming its lateral extension”.
Jefferies analyst Giacomo Romeo said Mopane is valued at €1.9 per share based on net recoverable resources of 800 million barrels of oil equivalent and a net present value of $4 per barrel, with a 50% risking.
Knowledge Katti, chief executive of Namibian player Custos, a partner in Mopane, said: “The continuing success of the exploration campaign further demonstrates the scope and potential of PEL 83.”
Maggy Shino, Petroleum Commission at Namibia’s Ministry of Mines & Energy, said: “The announcement of another significant discovery and the appraisal success at the upper target is further testament to the hard work and dedication of the partners involved, as well as another demonstration of the potential for further growth in our oil industry.
“With this discovery, we are one step closer to harnessing the full potential of this campaign.”
Robert Bose, chief executive of Sintana and indirect stakeholder in PEL 83, added that “this third light oil discovery in the Mopane complex and the appraisal results at the AVO-1 reservoir … provide further evidence of the scale and quality of our exploration portfolio held through our local partners, including Custos”.
PEL 83 lies immediately north of Shell’s PEL 39 and is north and east of Tota
Thank's, IJWT.
These are necessary prerequisites. Perhaps I related to other conditions, even Total has to, finally, complete these processes in its concessions. Cet par. :-)
Need to do EIA and complete the transaction, if that can be done expediently I think they'd like to drill in this year's weather window.