Profile image
By ProactiveInvestors (Reporter)
Contributor profile | More stories
Story Views

Now:
Last Hour:
Last 24 Hours:
Total:

Eco (Atlantic) Oil & Gas Ltd stands to benefit from Tullow’s rights issue, analyst says

Friday, March 17, 2017 4:49
% of readers think this story is Fact. Add your two cents.

(Before It's News)

Tullow Oil plc’s (LON:TLW) plans for a rights issue to fund projects in Africa and South America will be positive for the group’s partners, particularly Eco (Atlantic) Oil & Gas Ltd (LON:ECO,CVE:EOG), according to analysts at VSA Capital Research.

Tullow today unveiled a proposed US$790mln rights issue with the aim of paying down debt to unlock the group’s portfolio of expansion and growth projects.

It earmarked some of the proceeds for high impact, and potentially high return, drilling projects in Africa and South America.

The group will also make investments in new drilling opportunities, further exploration and appraisal programmes around the Jubilee and TEN fields offshore Ghana.

Tullow plans to invest in more exploration and appraisal activity in Kenya, to further build and prove up its resource base.

“Therefore, we view this to be particularly positive for Tullow’s partners across its licences, in particular Eco (Atlantic) Oil & Gas which has a 40% working interest in the Tullow operated Orinduik block in Guyana, adjacent to the giant Liza and Payara discoveries made by ExxonMobil,” VSA said.

Tullow and Eco are set to conduct a 3D seismic survey over the South American Orinduik block to refine targets and scope out new leads. The block is estimated to contain prospective resources of 900mln barrels of oil equivalent.

“The fact that Tullow have stated it plans to drill in the next three to five years across this portfolio is extremely positive and is ahead of our estimates,” VSA said.

“Eco is also a partner with Tullow in Namibia where Tullow is contingently carrying Eco for the costs of one well on the cooper block.”

VSA repeated a ‘buy’ rating on Eco and a target price of 25p. 

Story by ProactiveInvestors



Source: http://www.proactiveinvestors.com/companies/news/174987/eco-atlantic-oil-gas-ltd-stands-to-benefit-from-tullow-s-rights-issue-analyst-says-174987.html

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories
 

Featured

 

Top Global

 

Top Alternative

Register

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.