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Correction:

Maximum transaction value is, including carry, of up to US$32.1m to Eco, which includes payments due to Eco from Africa Oil and Ricocure, not the 31 MUSD I wrote below.

Agreed, 6.25% in this huge block is also reflected the fact that ECO chose the money track; 31 million USD in stages.

The money trail strategy indicates that management sees a settlement in the Namibian blocks and or other strategic movement. ECO will now, once again, be an actor in the international arena for new projects.

ECO has, in practice, been a one-project company, another farmout lifts the company past its previous potential when it was, only - in practice, a company active in Guyana.

Also, now we benefit from Total bying into Tungsteen explorer.

Https://theextractormagazine.com/2024/03/02/eco-atlantic-says-orange-basin-oil-discoveries-open-farm-out-opportunities-for-its-walvis-basin-blocks/?fbclid=IwAR3cUo-wMIpv5kS5nJmL30AEfQclpUGPImDFtG9UuHwk1gEG7gCyTn54fxw

AOI has its interests to protect. In the case of Eco Atlantic after a farmout in 3b /4B, the 20% that is the entry into the deal is no small part. It is important to note, regardless of how the deal is designed.

Aoi wants to clean up its portfolio before a larger merger with another company, this could mean buying all of Eco or selling its share in ECO to another independent or major. After a farmout, of course, our part of block 3B / 4B is of substantial value and therefore also interest.

How is news of a new major owner in ECO received? I think this situation is well prepared by the central parties involved. It is, after all, a central part of the business concept itself with the creation of our company.

The farming out of 3B / 4B in orange Basin is led by AOI. Judging by the comment from the CEO of AOI when extending the time in the data room through Q1 for new stakeholders, a settlement with Total was close, but the drilling start date unspecified. If I interpreted it correctly.

After the settlement between Aoi et al in the Venus concession, there is the same type of settlement as a possible outcome, carried up to production. In the Venus concession, this cost half of the holding plus historically sunk costs. Should ECO have such a construction with 10% left after the settlement, it stands out against what AOI and Sintana have in previous similar settlements until now.

The result of the settlement, the remaining share in block 3B/4B, will be an obvious purchase object in the market. Via Eco and / or as a separate deal where all or parts thereof are sold. Funded and ready.

Https://thebrief.com.na/2024/02/totalenergies-to-spend-n5-7bn-on-namibia-oil-exploration-in-2024/?fbclid=IwAR035h4-WXPST_K6RKys_UWbOwBaTwh0okhQw6cWATjeyn49tTZOP57p0ZQ

Total is steping up.

Https://www.globenewswire.com/en/news-release/2024/02/06/2824590/0/en/TotalEnergies-and-Vantage-enter-into-a-75-25-joint-venture-owning-the-Tungsten-Explorer-drillship.html?fbclid=IwAR1q2eFsyIWf7D4vIZVR0Y2XUlAPr3SNtPqk6qUaxetO_8rXqbP6pLBNBHo

In the past history of ECO, Guyana has been the only card for a new drilling and multiple doubling of the share price. The other possibilities have been experienced as more peripheral.

After today's news, the focus is more on block 3B / 4B in the Orange basin. From AOI's perspective, the approval of the share in the block is a prerequisite for proceeding with the farmout process, for ECO it means the same, plus cash will be in the account.

If ECO gets new stakeholders into a farmout in Guyana, you have two active blocks at the same time, something we have not experienced so far.

So with a little more cash, we are now waiting for word from the out farming of 3B / 4B during Q1 -24.

Https://www.upstreamonline.com/exploration/galp-stock-price-hits-four-year-high-after-major-oil-discovery-in-namibias-white-hot-orange-basin/2-1-1581311

Https://stockhouse.com/news/press-releases/2024/01/10/pel-83-exploration-campaign-update-mopane-1x-significant-light-oil-discovery

Also in Orange basin. :-)

The shareholders (Africa Oil and Hosken Consolidated Investments, 81% together) in Impact make a deal with Total about the two blocks they have where, among other things, the Venus discovery is made.

Impact receives 99 MUSD for previously incurred costs and is financially supported by the development of the oil fields. These costs are then deducted after production starts. Impact chooses to believe in revenue from production, rather than selling oil in the ground, now.

Also important for Eco: Total shows with its cash payment that it has data that makes it want to invest fully in the Orange basin. The agreement thus takes a decisive step to a new level of development in the Orange basin, something that benefits companies with interests there.

Part of the article:

"Galp stated this morning in an operations update that results to date from Mopane-1X indicate “preliminary signs of hydrocarbon presence”.

However, the company stressed that with drilling and data acquisition campaigns still underway, it is "premature" to make any conclusion until operations have been completed and results assessed.

Galp’s share price was up 1.8% in early morning trading on Euronext in Lisbon, at €13.58 ($14.34).

The probe is being drilled by semi-submersible rig Hercules in Block 2813A, some 14 kilometres north of the boundary with Shell’s acreage, and 30 kilometres from the supermajor’s unsuccessful, high-risk Cullinan-1 probe which was targeting a carbonate structure.

Victoria Sibeya, Namcor’s head of upstream exploration, told Upstream in October that Galp is not targeting carbonates but is going after “Upper Cretaceous plays… that have already been proven in (Shell’s) Graff-1X discovery”.

Galp has an 80% stake in PEL 83 and is partnered by local player Custos Energy and state oil company Namcor, each with 10% interests."

https://www.upstreamonline.com/exploration/new-namibia-exploration-well-finds-signs-of-oil-and-gas/2-1-1577753

The short summary of the climate meeting seems to be that it must be the supply side of the market and the price of green technology that must determine the speed of the transition. Not the supply side of oil. In addition, the transition must be "fair", something that adjusts the way for different supply in the third world. IMHO.

The issue of taxation in the stock market goes away soon, but a notification about an environmental permit for 3B / 4B will soon arrive. Then we have the interest of the three new players in the concession to be materialized.

I like the increasing volume, in London too. :-)

H1 2024. :-)

We will have at least one, maybe two, farmouts during H1. Check backward in the chart for having a hint on the valuation when the farm out is a fact.

So differently one can comment on a possible farmout agreement at the end of Q1. :-)

The rating of Eco can go from

uncertainty about possible farmout to probability of farmout time until the end of Q1.

After an agreement, the valuation can be adjusted according to the likely time for drilling.

For ECO, the joker will be if they also make an agreement in Guyana.

Sees opportunity for big moves from today's levels during H1 -25.

Did not see previous posts. Sorry.

Part of the article:

"“We have had significant discussions with one major already on that block,” Tucker told investors on 16 November, and had hoped to wrap up a deal — which would likely involve drilling two exploration wells — sooner rather than later.

However, he pointed out that now, because “three other majors have asked to come into” the data room, finalisation of a farm out agreement will take a bit more time”.

“The (deal) is going to take a little bit longer. But I think it’s worth standing on the sidelines and not leaping at the first opportunity, because there has been this sudden uptick in the level of interest in the block,” he said.

Tucker said he wants to give these late arriving majors the time needed to study what is on offer in the data room, before a decision is made and a deal wrapped up.

He reckons an agreement could be clinched “towards the end of the first quarter” of 2024.

Tucker did not name the interested parties, but it is thought they include Shell and TotalEnergies – who already operate acreage elsewhere in South Africa’s Orange basin – would be keen to assess the potential of Block 3B/4B."

https://www.upstreamonline.com/exploration/three-majors-in-last-minute-dash-to-enter-race-for-slice-of-orange-basin-hot-spot/2-1-1561042?fbclid=IwAR0VhZYbuxi5xpUF8zMosuWEcly8lxzC-5VQGklfbgIkpTVFO66gA3sjhDc

Part of the article:

"TotalEnergies’ Mangetti-1X exploration well in Namibia’s prolific Orange basin will also appraise the supermajor’s Venus oil discovery in Block 2913B, confirming an earlier report by Upstream.

Once this well has been completed, the supermajor might target a prospect further north before turning its attention to the southern part of the block where a 3D seismic shoot is due to kick off early next year.

TotalEnergies completes critical flow tests on huge Namibian discovery

Read more

Looking even further ahead, the French operator may eventually return to adjacent Block 2912 where the Nara-1X probe was said to be “dry” by TotalEnergies chief executive Patrick Pouyanne, but did in fact hit hydrocarbons.

Roger Tucker, chief executive of Africa Oil — a listed company with an indirect 6.2% stake in the two blocks through its 31.1% ownership of Impact Oil & Gas — said the exploration target for Mangetti-1X is a “higher fan than was encountered” at Venus, but stressed the well would also drill deeper to target the northern extension of Venus.

He suggested Mangetti will likely go through both objectives between mid-December and the end of this year, but cautioned that results might only be released by the operator during its February capital markets day.

Once this well has been completed by the Tungsten Explorer drillship, a new probe could be drilled in the northern part of the block, Pouyanne recently said.

At the same time, Tucker told analysts late last week that additional 3D seismic would be acquired over the southern part of 2913B to cover the promising Damara and South Damara structures.

“It looks extremely attractive, and the 3D will be shot in the early part of 2024.”

https://www.upstreamonline.com/exploration/totalenergies-latest-namibia-exploration-probe-targets-two-reservoirs/2-1-1559827?fbclid=IwAR1VmvkH7Ls2stbL6u9qhr394lKT6XRSfKesL2iqPgeBWpDyCS8NZsY2wvY

Part of the article:

"Africa Oil — which has an indirect 6% stake in Venus through part ownership of Impact Oil & Gas — said that results from Venus-1X are 'expected to be confirmed by the Venus-1A drill stem test [DST] programme'. "

......

"An earlier production test on the Venus-1X discovery well met expectations, so the clear hope among partners — which also include QatarEnergy and state oil company Namcor — is that these results will be matched by Venus-1A.

One knowledgeable source last week said that “big” flares had been reported at the Deepsea Mira.

This was confirmed by Africa Oil’s recently appointed chief executive Roger Tucker, who said there were “major flares” at the well location.

These flares, he explained, disappeared and reappeared on satellite images as TotalEnergies switched the flow of hydrocarbons off and on to assess pressure build-up in the reservoirs.

“So, we’ve tested hydrocarbons to surface at the Venus appraisal well,” Tucker told analysts during the company’s third-quarter conference call late last week.

Upstream understands the flares were visible on about a dozen separate occasions between 9 and 12 November.

Tucker said: “We would expect to see results in the next couple of weeks.”

TotalEnergies chief executive Patrick Pouyanne recently said that Venus is a commercial project and would be developed.

https://www.upstreamonline.com/exploration/totalenergies-completes-critical-flow-tests-on-huge-namibian-discovery/2-1-1557001?fbclid=IwAR3BOkLk2z7PAjOoZHgistRZJ7r9ufr4Plk2_z1mQ1ybKYYyVeZi8qGODig

Part of the article:

"Colin Kinley, co-founder and chief operating officer of Eco Atlantic, said: “We have always been very involved with the exploration and interpretation of the block, and our experienced team will step directly into operatorship to finalise target selection.”

Discussing the wider offshore exploration scene in Guyana, he said nearly 10 years of exploration has generated Cretaceous discoveries holding close to 11 billion barrels of recoverable oil.

“Our team has a good understanding of the Cretaceous play and we have a great deal of confidence in drilling our first well, targeting a stacked pay target in this well- proven horizon.”

Kinley said Eco Atlantic is now looking for partners in this high-value play and has started a formal farm-out process.

“Recent interest from supermajors and other well capitalised energy companies in the latest licencing bid round in Guyana for blocks up-dip of us, supports our thesis of the oil migration and the high quality and charged reservoirs we see on our block,” he argued."

https://www.upstreamonline.com/exploration/junior-player-opens-doors-in-partner-hunt-for-tantalising-guyana-block/2-1-1555318?fbclid=IwAR2HTMVYwXgLq6jnaTwCH9Yj6DymvwuLG95q0DSZZWEsBgc-8ySuBZn_Po4