Eco (Atlantic) Oil and Gas Ltd. (ECAOF)

[pro_s2009]

At 95$ a barrel minimum size for a commercial discovery at Gazania-1 would be just 30 million barrels recoverable.

If we go to best case discovery of say 300 million barrels recoverable then at 95$ a barrel the NPV is around 3.2 Billion dollars of which 50% is ECO.

Even at a conservative oil price estimate of $65/bbl a discovery in the region of 300 MMbbls is expected to have an NPV of 1.6 billion.

Its easy to see why Gil refers to Gazania-1 as a potential "ten bagger" for ECO if it comes in good in this recent interview ( https://www.alignresearch.co.uk/eco-atlantic-oil-gas/dr-michael-green-interviews-gil-holzman-ceo-of-eco-atlantic-oil-gas/ )

Cape Town's Astron refinery is due to restart in Q4 2022, and this would be where any produced oil would be sent - so all is perfect timing for a discovery then quick development.

Gazania-1 well appears to consist of 2 seperate targets :

Lower Gazania target - estimated around 122 million barrels recoverable.

Upper Namaqualand target - estimated around 228 million barrels recoverable.

Total being potential 350 million recoverable and either would be commercial in the absence of the other.

Realisiticaly here you would want around 70 million barrels to be assured it would be commercially developed, so if the lower target comes in and the upper not, still commercial.


With ECO having a current market cap below 100 million US$, there really is one massive potential upside ahead, just for Gazania-1. And then on top of that you have Guyana and Namibia, with Guyana drilling expected to be H1 2023 (news on targets soon) and potentially deals to be done in the Orange Basin......with ECO potentially getting a free carry from a Major for 2 exploration wells to be drilled in 2023 in a farm out deal is a rumour that floated around.

All imo, DYOR !