Eco (Atlantic) Oil & Gas upbeat as JHI transaction yields well catalysts offshore Guyana
“We are entering a very busy period of drilling and updating drilling plans," chief executive Gil Holzman highlighted
Company
LON:ECO
Eco Atlantic is an oil and gas exploration company focused on the acquisition and development of unique upstream petroleum opportunities around the world. The Company's objective is to identify technically merited prospective new and developing projects in frontier areas requiring low cost entry. In Namibia through wholly owned subsidiaries, the Company currently holds interests, some carried by Tullow Oil and Azinam, in four offshore petroleum licenses covering more than 32,000 square kilometers in the Walvis and Lüderitz Basins, in close proximity to major blocks controlled by Repsol and Tullow Oil. In Guyana, Eco Atlantic holds an interest in the 1,800 square kilometer Orinduik offshore block in close proximity to the Exxon Mobil Corporation's recently announced "Liza" discovery holding multi million barrels of oil . Eco Atlantic enjoys strong local presence in the countries in which it operates and has a longstanding relationship with the energy and oil and gas sectors throughout Africa and other maturing exploration plays internationally.
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“We are entering a very busy period of drilling and updating drilling plans," chief executive Gil Holzman highlighted
Berenberg has a 125p price target and a 'buy' recommendation for the explorer.
"Despite the ongoing macroeconomic backdrop, we remain very positive about what the future holds for Eco Atlantic," said Eco's boss, Gil Holzmann
“I have a great confidence that our Canje Block exposure will yield great returns and oil discoveries," CEO Gil Holzman said in a statement
Eco also announced a private placement with strategic partner Africa Oil Corp. and Charlestown Energy Partners LLC to raise about C$6.1mln
Along with its exploration partners - Tullow Oil, Total / Qatar - the AIM-quoted firm is hoping to confirm a fresh well schedule in the third quarter, with drill-bits set to turn in 2022.
"We are high-grading candidates for the next drilling program, with the Operator expected to select targets later this year."
“We are very excited about both the near-term opportunities that Solear brings," said Gil Holzman.
A new company funded by Eco has already made its first deal, picking up a 'ready to build' solar project in Greece
“The issue is the relative challenge of surfacing the oil. In our case we see many supporting ingredients that suggest the oil is commercial and producible.”
Each of the new Petroleum Exploration Licenses will have a ten-year life cycle
"Eco remains fully funded for its further near-term drilling plans in Guyana and continues to evaluate additional value-enhancing opportunities,” said chief executive Gil Holzman
“Our pick of the explorers is Eco, which plans two Guyana wells in 2021," analyst Matt Cooper said.
The imminent Tanager-1 puts the spotlight back on Guyana, one of the most exciting and prolific exploration frontiers for several years
“We remain upbeat about the considerable upside potential that the Orinduik licence possesses," CEO Gil Holzman said
In Namibia, the next 18 months will see up to five exploration wells drilled on behalf of Exxon, Total, Maurel and Prom, Shell, and Galp
Before the coronavirus pandemic Eco had hoped multiple exploration wells could be drilled at the Orinduik block this year
After last year's disappointments, Tullow's exploration partner Eco Atlantic is pushing for new drilling in the Cretaceous play as soon as possible.
Eco and Total have so far this year stated intentions for a 2020 drill campaign offshore Guyana, but, events at Tullow and its ongoing analysis of prior results could see slippage into 2021
Three-quarters of the oil was in the cretaceous horizons, which is where the lighter oil should lie