RE: Cards close to chest14 Jul 2019 21:38
What attracted me to Eco Atlantic from when I was first watching this stock at 18p was that as the story has developed I don’t think I have ever seen an exploration stock that has ticked so many boxes. I know nothing is ever guaranteed, especially in oil exploration, but when I have done my research and considered risk v reward. This has to be the most compelling investment I have made to date, things to consider.
- COS associated with our first two wells is what you would normally expect to see with an appraisal well.
- Size of prospects to be drilled
- Unitization talks with Hammerhead prospect extending into our block to help attribute a baseline valuation to the stock, imminent
- Funded for up to 8 drills which is unlike many other exploration companies I have invested in, in the past. Not a one trick pony
- Favourable terms from government with breakeven costs as low as $25 a barrel, well insulated from volatility in POO
- Success rate on neighbouring block, say no more
- Serious players in the area who could swallow Eco Atlantic whole in the event of success and not even blink
- Tullow and Repsol drilling on a neighbouring block which will provide our operator with further data that will help derisk our block at zero cost to eco
I could continue, it’s their for all to see, and whilst I know of the risks and have positioned accordingly, I am about as comfortable as I think you can be given the risk v reward.
Whilst we all know of the historical plugged and abandoned wells, a lot can be said for how technology has taken the industry forward over the last few decades and what Exxon has achieved in recent history
IMO if we can break 74p I can’t see us stopping unless we get a duster. Especially now that the seller has shown their hand which would imply they have finished repositioning. Near term news flow over the next two months is breathtaking.
Good luck
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