Eco Atlantic (AIM: ECO) is the latest junior oil exploration company to list on AIM. The stabilisation of the oil price in the $50 region over the last six months has been encouraging investors to step up and finance the next cycle of activity.
Exciting times in Guyana
The company has raised £5 million at 16p, to give a market cap of £19 million. The funds will enable it to start a seismic programme in Guyana with its partner Tullow. Eco is the only junior company in the region which looks very interesting following a large offshore discovery by Exxon Mobil. Eco’s interest is in shallow water in the adjacent block to Exxon’s estimated 1.4 billion barrel find. This has encouraged the companies to accelerate their seismic survey programme and Eco expects the project to be drill-ready by the end of this year.
The company is also working with Tullow in offshore Namibia where it holds an interest in three licenses. Work here started five years ago and significant seismic surveys and interpretation have already been carried out. Environmental assessments are being undertaken ahead of applications for drilling permits.
Eco Atlantic already has a listing in Toronto but CEO Gil Holzman said AIM was a natural place to raise fresh funds. Its partner Tullow has a high profile in London and he sees a healthy appetite for E&P stocks on AIM following the recovery in the sector.