WTI $91.32 -90c, Brent $91.32 -58c, Diff -$1.37 +41c, NG $4.23 -34c, UKNG 195.0p +8.33p
Oil has fallen a bit today, something over a dollar after stories from the US/Iran nuclear talks suggested that an agreement may be close. Now obviously I’m not there but given the Iranian Government are taking a much stronger, intransigent line then one has to assume that the US are about to cave in and trade off peace in the Middle East and beyond for who knows what.
Totally unconnected (I promise..:) ) are today’s US retail gasoline prices where a gallon of Exxon’s finest now costs an average of $3.444 which is up 7.6 cents w/w, a rise of 14.9c m/m and up 98.3c y/y. The rise of gasoline prices is particularly upsetting to Sleepy Joe and with the flogging of the Strategic reserves at a lower price having been a poor call now he is going to arm up Iran….
Eco (Atlantic) Oil & Gas- it’s a win-win situation
Further to the announcement on 10 January 2022, Eco has confirmed that it has signed a definitive Share Purchase Agreement to acquire 100% of Azinam Group Limited in return for a 16.5% equity stake in the Company.
The Acquisition is expected to complete in two to three weeks pending TSX-V approval, at which time a further announcement will be made.
Gil Holzman Co-Founder and CEO of Eco Atlantic commented:
“We are very pleased to have signed the final definitive SPA to acquire Azinam Group. This now puts the Company a step further towards joining all of Azinam’s offshore exploration acreage into our broader portfolio.
“We are working towards drilling a well on Block 2B, a highly prospective play in the Orange Basin, offshore South Africa, close to the recent discovery by Shell and Qatar Energy in the Orange Basin in Namibia. The well is planned for the second half of this year. The Company also anticipates drilling a further exploration well in Guyana following this. Eco (the designated Operator), along with the Block partners at Africa Energy and Panoro, believe that Block 2B, which already has an established oil discovery, possesses considerable upside potential. We also evaluate that Block 3B/4B, with the Block Partners at Africa Oil and Ricocure in the Orange Basin, South Africa, is directly correlated to the Graff-1 well, which was announced on Friday 4 February 2022 by Namcor and block partners as a light oil discovery in the primary and secondary targets. We look forward to firming up our exciting drilling plans and updating our shareholders on the funding structure and timing of the wells in due course.”
Things are happening at Eco Atlantic and investors should be aware that this is a crucial moment in investment terms for the company. There really isn’t anything in today’s statement that is new but given that CEO Gil Holzman has in his comments made it clear that now is the time to press the buy button and not to hang around if you are thinking of investing.
There are two very good reasons why Eco remained in the Bucket List at the turn of the year and they are both appearing over the horizon right now. After a long wait due to Tullow’s financially impecunious state and thus long delay in drilling in Guyana this is now a live situation and the drill bit is expected to turn towards the end of this year.
Perhaps more importantly, and whilst we have up until now had Namibia on the back burner until wells drilled by others had happened but recent drilling success by Shell has brought that acreage back into immediate contention.
Accordingly, and taking into account the recent corporate activity with regard to Azinam, the whole area is of immediate interest. Now the drilling of a well on Block 2B, ‘a highly prospective play in the Orange Basin, offshore South Africa, close to the recent discovery by Shell and Qatar Energy in the Orange Basin in Namibia’ is incredibly exciting for shareholders.
So, action stations and with so much going on, one can only revisit the valuations previously attributed to Eco and whilst I have yet to do the sums with regard to recent corporate moves the target price will be a multiple of the current level and puts Eco right back into the sights of the value hunters.