Africa Oil Corp (AOIFF)

[douginil]

Africa Oil - Eco (Atlantic) Oil & Gas

[[ Thanks to Malcy's Blog ]]
https://www.malcysblog.com/2022/03/oil-price-chariot-eco-atlantic-and-finally/

March 21, 2022

Eco has announced the publication of an updated NI 51-101 compliant Competent Person’s Report on its assets Offshore Guyana, Offshore Namibia and Offshore South Africa. The CPR was compiled by WSP USA Inc., of Boulder Colorado, USA, an independent third-party auditor and can be found on the Company’s website.

The new CPR incorporates the increased interests in its Namibian assets and the additional two blocks offshore South Africa resulting from the acquisition of Azinam Group Limited as announced on 11 March 2022. All contractual and legal conditions required for completion have occurred save for final approval from the TSX Venture Exchange, which is expected to be received imminently. The CPR has been prepared on the basis that the acquisition of Azinam has completed.

Summary of Unrisked Prospective Resource Estimates

[[ Goto Malcy's Blog or the company website for the tables ]]

· Guyana (Orinduik Block) – Net to Eco 681 mmbbls Oil and 544 BCF Gas

· South Africa (Blocks 2B & 3B/4B) – Net to Eco 864 mmbbls Oil and 309 BCF Gas

· Namibia (4 Blocks) – Net to Eco 6,705 mmbbls Oil and 6,565 BCF Gas

Colin Kinley, Co-Founder and COO of Eco Atlantic commented:

“With our current strategy for increasing our stakeholder asset base, we have focused solely on strategic acquisitions that can add material and near-term growth and catalysts for the company. The addition of the Azinam assets in Namibia and South Africa have quickly added prospective resources to our portfolio. As we work towards the completion of our recently announced binding term sheet to acquire JHI’s 17.5% interest in the Canje Block offshore Guyana plus the maturation of additional resources currently being interpreted from ongoing 3D processing in Block 3B/4B we expect to see even further growth of the portfolio from here in the coming months”.

Importantly our acquisitions and strategy to deliver mature drillable prospects in the near term is driven in part by the current heated energy market, the reduction in worldwide exploration, and the marked cycling we anticipate through energy transition in the coming years. Eco has the capacity to participate and provide strategic value accretion through the drill bit. 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, subject to available funding, and look forward to confirming a drill target and timing with our partners in the coming months. Assuming the acquisition of JHI completes as planned in the coming months, this acquisition will also provide us with the opportunity to participate in a number of targets on the Canje Block as prospects are matured by ExxonMobil and ourselves in the Guyana basin.”

Eco are powering ahead with this CPR in which the numbers are truly stupendous, even shareholders may have blinked when they saw best estimate prospective resources of some 8.2bn barrels of oil and 7,417 BCF of gas. The report has everything in it except the recent JHI deal which includes the Canje block in Guyana which would provide icing on the top of this exceedingly good cake.

Clearly Namibia takes the kudos with its huge structures containing massive potential but actually if you look at existing portfolio it is carefully assembled with differing profiles and geographies. Recent drilling in every single area that Eco can be found has already started the de-risking programme and Gil and Colin have put together what is rightly been described as ‘the biggest small cap in the E&P world’. Indeed normally if you saw such a sizeable portfolio you wouldnt expect it to be in a company with a market cap of only £70m.

Last time I wrote about Eco I suggested that it might even be the ‘go-to’ exploration company in the energy mix, this CPR only confirms what a gem this is in the E&P sector, with funding available through canny deals, enormous strength from partner companies and investors who know a good thing when they see one. As they say on the stage, this one will run and run…