Eco (atlantic) Share Chat (ECO)

How so?

Finally the pieces may be coming together???

For UK tax law.which may have been tightened, when an Infrastructure project was in construction it utilised a specific tax treatment to recognise the heavy CapEx producing significant tax losses. It would then flip to an operating model treatment.

Often partners would purchase the tax losses from the SPV to set against their own future profits. They didn't need to even be majority holders just have a share interest.

Hi Redwine

If Exxon / Hess would buy the 60% WI Eco Orinduik (which is also the license operator company) they could offset the historical losses for this company against the profits they get on their oil production in their Staebroek block I’m sure, in particular if they drill a new well on Orienduik showing they are not buying only to use the historical tax losses.

Exxon/Hess are in a unique position having oil production in Guyana already. Any other oil company buying our Eco Orinduik would not be able to offset any losses until they actually find and start producing oil in Guyana and that’s never certain in oil exploration.

With the heavy oil Hammerhead development going ahead, including our bit, I believe we will see Exxon getting involved in our block soon enough.

N

3b/4b will propel us higher...soooo looking forward to info re drill timelines...

Orinduik...i still have high hopes. We are almost guaranteed good oil sample in cretaceous if we find a partner to drill it. I imagine its taking a while given exxon and hammerhead...and exxon probably arent willing to just give us what we want because they probably dont need to...we must look pretty tiny to them.

Namibia? That was why i bought way back in 2012. There is a lot of potential in those blocks. That WAS eco atlantic back then. Guyana came after...and i was a cgx energy investor so had heard of the huge potential there for years before. I was in cgx through the whole suriname gunboat incident! Those were the days!

I just hope we start heading higher...this has been dragging for years now. So much potential here!

Anyone know what the CEO said mentioned about drilling times around 3/4b? Any right estimates from him, or is this left to total to deal with

What's 3b 4b worth to eco in success case share price,

Bradley . We are in a similar position. My logic is (feel free to give me opposing views)...

If you believe 3b/4b will be drilled then you also have to believe Eco will be higher, maybe much higher after the drill announcement and spud.

But it's Orinduilk that holds me back. To many unanswered questions on how we got to here without something happening already.

If Orinduik fizzles out then it's an all or nothing on a find in SA. I don't count Namibia as it's too far into the future to be material vs other places to invest my own hard earned.

Good spot norseman.

Looks like they could shuffle the deck to find a solution. You'd also need to know Guyana tax law of course!

Redwine

«Subject to the requisite government notifications, Eco will remain the Operator, holding 40% WI in the Orinduik License through Eco Guyana and 60% WI through Eco Orinduik.»

Top page 8:

https://wp-ecooilandgas-2020.s3.eu-west-2.amazonaws.com/media/2024/07/EOG-AIF-2024-FINAL.pdf

What's the max shares you can buy here with out hitting the 3% mark, I see shares in issue quote small

Redwine are you still adding to your position? I want.to at these prices but im really overweight here!

The tax losses I assume will be held by Eco's Guyana subsidiary. For them to be utilised in any transaction by a future partner would, in normal circumstances require the subsidiary to be sold in a share deal to that partner. Of course I don't know enough about it to say it's not possible but for that to happen and Eco to maintain an interest in the licence would seem complicated. Guess it would depend on the governments attitude and in these parts of the world anything is possible particularly if you are Exxon.

With the signing of the 3B/4B deal when funds clear I think TOTAL become operator. At this point they will be keen to get drill dates lined up so would expect confirmation within 6 weeks of them becoming operator.

For Guyana - the tax losses Eco hold on Orinduik fully offset the value Eco seek to be carried on a drill or two. Agreeing monetisation for Hammerhead could see Eco carried on 2/3 drills for Orinduik in addition to the tax losses so I'd imagine this is the current basis for negs. I wouldn't be surprised if John Hess was interested subject to non-compete.

I'm no doubt seeing what I want to see but if it's likely to be Exxon, ECO would be really keeping the info as tight as possible. In the pat it's been leaky. however they managed to keep Total farming news quiet until the RNS and similarly the AOI deal was quiet also until the RNS. Hopefully no news is a positive.

I would expect next news to be an RNS on the AOI deal completing and this then paving the way for news on Orinduilk/Hammerhead, hopefully before the end of the year..

Nothing realy

The announcement of a drill date.

What will be the reason for a double overnight Harel...have you heard any behind the scenes developments??

Until you wake up one day and it doubles..

Starts yesterday 12.5-13p. Then randomly goes 13.25-12.75 on a sudden flurry of buying. Then a tiny bit of selling and it's 12.5-13p again. Not moving on news just having random big intra day moves then all end up back where it started again

Is this a XOM try-before-you-buy ha ha

Looks like a chunky late reported buy.

«US supermajor ExxonMobil has resumed appraisal work at one of its early discoveries offshore Guyana, a large area close to the central portion of the prolific Stabroek block that has been selected as its seventh project in the country.

ExxonMobil picked Hammerhead at its latest development in Guyana and expects next year to make a final investment decision to officially sanction it.

The proposed project will feature a floating production, storage and offloading vessel able to process between 120,000 and 180,000 barrels per day of oil and from 60 million to 120 million cubic feet per day of natural gas.

Hammerhead was discovered in August 2018 after ExxonMobil unlocked about 60 metres of high-quality oil-bearing sandstone reservoirs a few kilometres southwest of the Liza and Payara field.

Two appraisal wells were successfully drilled in 2019, but in an effort to verify the presence of additional volumes, ExxonMobil started drilling the Hammerhead-4 well.

According to updated information from Guyana’s Maritime Administration Department, the Hammerhead-4 appraisal well is being drilled with the Stena Drilling drillship Stena Carron.»

https://www.upstreamonline.com/exploration/exxonmobil-to-hammer-away-at-guyana-play-in-search-of-more-oil/2-1-1702648

Even more decent selling

Decent buying this morning