The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Eco's strategy is to hold attractive blocks, make 1/2 discoveries and exit for a billion dollars.
Eco now has four blocks that are drill ready but is looking to secure more blocks.
Pel 90 and 83 in namibia are the next target, right next to venus-1.
Charlstown which is a strategic investor in eco also owns sintana which entered 5 blocks in namibia through a deal with inter oil, i expect eco to follow.
One hit and eco will be a 3-4 billion$ company in a couple of years as funding wells will no longer be an issue.
The jhi transaction proves a great value creator for wte, when the deal was stroke eco was trading at 28p, in two weeks the value increased by 50%!!
Now only the eco holdings, which is cash equivalent, is worth 5m$!!
With 2m$ in the bank and 5.2% of cataleya with no debt and 30m$ cash balance, we are trading under the cash value not including the value of the cataleya kaieteur interest and the potential consolidation.
The next 12-28 month will see so many world class catalysts..
A no brainer!
after the eliot investment and the hess farm out i assume cataleya holds around 30m$ cash.
at times of consolidations in the basin and after the delay in kaieteur uts more then probable that cataleya will use its high cash balance to consolidate and fund some near term high impact wells.
the most reasonable candidate is mid atlantic which needs funding for the 12 wells campaign planned in canje after most of its cash probably dried out after funding sapote-1 by themselves.
that could be a great catalyst for wte near term.
in the medium term i expect around Q3 the launch of the coming campaign and this time eco will participate directly so i expect a lot of info and marketing by gil holtzman.
a lot of new catalysts were added to the blend by the eco-jhi transaction that realy think the wte investors are in a better place thanks to the eco exposure.
now trading at the cash and cash equivalent value wte is a great exposure as 0 potential is being priced while we have exposure to multiple world class, high impact wells and non binary events...
p, your ratio-wte idea is a very smart thinking, i just contacted ratio's ceo and presented the idea and offered to use my direct line to wte to check if that is of interest, a long shot but worth a try..
ratio's ceo claims they have a few interested parties in farming in to kaieteur, i would guess its a min' of 10% for a carry of at least two wells, they have cash for another well so that is the focus right now..
nothing will happen without a drilling decision by exxon.
i thought a deal with eco could serve ratio well but gil said he is not looking for a deeper paly exposure.
agree, the 3b/4b cpr is very conservative and thats good..
we now have multiple non binary events to wait for, the completion of the jhi merge and an updated cpr, an orinduik target selection and drilling decision that might be followed by a tlw farm out, a canje targets selection, a 3b/4b drilling decision and target selection, a namibian farm out is on the cards and more transaction could land at any time.
btw, the jhi merge comes with holdings in wte as well so even though its a tiny exposure, eco has interest in the kaieteur campaign as well.
"Our planned well for Q3 this year on Block 2B in South Africa is being quickly followed by work on the potential to drill on Block 3B/4B in the Orange Basin, directly adjacent to the recent discoveries announced by TotalEnergies and Shell. We are also confidently progressing towards drilling in Orinduik block offshore Guyana".
While waiting for a kaieteur update, eco, our other main investee company has released an updated cpr..
https://stockhouse.com/news/press-releases/2022/03/21/eco-atlantic-oil-and-gas-ltd-announces-new-competent-person-s-resource-report
The update is expected any day now, today the israeli market was open, ratio petroleum was red all day, that suggests we have another delay but my guess is that if so it might be a short delay of about 8 weeks, maby related to tarpon-1 on the other side of the boarder.
That kind of a delay is welcome because its not a drill delay but an update delay, but lets see what tomorrow brings..