Presentation

Eco Atlantic offers exposure to the Orinduik block (15% WI) offshore Guyana, where ExxonMobil and its partners have discovered more than eight billion barrels of oil on the adjacent Stabroek block. The company is dual-listed on TSX-V and London AIM with a market capitalization of USD 55m and had a cash position of USD 18m as of Q2’20 with no debt. Eco Atlantic’s largest shareholder is Africa Oil (18.4% stake).

The Orinduik partners also made two discoveries last year that eventually turned out to be heavy oil resources with need for further work to assess commerciality. The discoveries were made in the Tertiary interval and the initial partnership plan was to follow-up with a drilling campaign this year to target the deeper Cretaceous potential. If successful, this interval has the potential to contain several billion barrels of lighter quality oil. However, the current environment creates uncertainty on the likelihood and timing of new wells.

With the next triggers being difficult to predict and exploration exposure out of favour, Eco Atlantic currently offers an opportunity to secure exposure to acreage in a prolific exploration region at a low price. Importantly, Eco Atlantic is fully funded for its share of costs associated with three future wells. The company is therefore also well positioned to preserve the long-term shareholder value and offers potential for high returns for investors willing to take on exposure to the above mentioned uncertainties.