Pinnacle Activity Ticker
Eco ( Atlantic ) Oil & Gas Ltd EOG TSXV, the next AOI?
I think EOG has the potential to be another AOI, I was in UNX Energy through to it's take over by a Brazilian Oil Company. I learned from that and what Africa Oil AOI and Horn Petroleum HRN have taught me establish a significant position and be patient waiting for the big pay off.
EOG is trading around 70 cents with fully diluted shares of 73 million. Insiders hold 30%, institutions 40% and retail investors 30%. I put on a blog on PD about Africa Oil over a year ago, PD members who follow me into AOI, have found their patience extremely well rewarding, this I feel will be the same case with EOG.
Here's a recent CEO TV interview:
or the youtube video is here: http://www.youtube.com/watch?v=P2ldA7euxIc
EOG current market cap is below $50 million. UNX Energy (a company with offshore Namibia blocks) was taken out by HRT for $730 million after only 2D and not drilling a single well. EOG has better blocks than UNX Energy had (EOG blocks in Walvis Basin which is the more oil prone basin of the 4, EOG was early in the area and had choice as to which basin to choose base on their studies) plus EOG has more NI 51-101 P50 resources (18 billion barrels total with 12.74 billion net to EOG for their 70% working interest). Now if any of the 8 to 10 wells being drilled in the area within the next 1 year finds oil, then it adds a level of de-risking to everyone and it's conceivable at that point that EOG would be worth more than $1 billion (more than a 20 bagger from current levels) given they have the most P50 resources to date in the area. EOG would likely be bought out by a super major given the 18 billion P50 resources on their blocks and a discovery in the area. If UNX Energy got $730 before a discovery with less resources than EOG, then EOG is going to be worth a lot more on the buyout, the company has huge capital gains potential.
More about Eco Atlantic
18 Billion Barrels Prospective Oil Offshore Namibia
A New Emerging Oil and Gas Company
• Second largest acreage holding onshore and offshore Namibia, listed on the NSX under "EOG"
Excellent Growth Potential
• Three offshore licenses covering over 25,000km2
reported NI 51-101 resource potential of
approximately 9 billion barrels
• Two onshore licenses covering over 30,000km2
with shale & coal bed potential
Advanced Exploration Program
• 2D seismic data acquired on all offshore blocks from TGS NOPEC & WesternGeco
• 3D seismic to commence 2012
• NI 51-101 Report complete on Guy Block – 9.2 Bbl (P50) Best Estimate, Prospective oil
• NI 51-101 Report complete on Sharon Block – 7.8 Bbl (P50) Best Estimate, Prospective oil
• NI 51-101 Report complete on Cooper Block – 1.15Bbl (P50) Best Estimate, Prospective oil
• Total Gross Prospective oil resource of 18 Bbl (P50) Best Estimate (Net 12.74 Billion barrels)
Highly Experienced Team
• Experience in capital markets, African oil, gas & finance with established local networks
• Deal team execution track record
Brazilian Counterpart, Gondwana
• Common geological history and contains similar petroleum systems
• Over 80 Billion barrels “Bbls” BOE of recent discoveries in South Atlantic Ocean
• Approximately 30 Bbls BOE estimated offshore Brazil
• Recent 3D seismic surveys reveal consistent and prolific results beginning to mirror its geologic counterpart in Brazil
Nambia Economic Profile
• GDP: US$15.5 billion (2011 estimate)
• Annual Growth: 3.6% (2011 estimate)
• Population: 2.17 million (2012 estimate)
• Inflation: 5.3% (September 2011)
• Major trading partners: South Africa,
Angola, UK, Spain, Japan, China and USA
• Taxation of oil production: 5% State
Royalty / 35% corporation tax / no capital
gains / IRR>15% - APT
* Source: CIA World Factbook
Eco Atlantic is Very Undervalued Compared to its Peers, ( Africa Oil AOI.V, Chariot Oil & Gas CHAR.AIM, Energulf Resources ENG.V, Serica Energy SQZ.TSX, Tower Resources TRIP.AIM, Victoria Oil & Gas VOG.AIM ).Therefore it has Significant Upside Potential.