Eco Atlantic CEO Sees Undervalued Assets Despite Market Slump
Translated & summarized from Bizportal by baba
Eco Atlantic CEO Gil Holzman believes his company's stock is undervalued, as the market is not pricing in its significant exploration assets, including those in the Falkland Islands. The company's strategy involves early-stage exploration and bringing in major partners to fund drilling, mitigating financial risk.
The story in 5 lines · by baba
- Eco Atlantic CEO believes company stock is undervalued by the market.
- Company's strategy focuses on early exploration and partnering with majors.
- Falkland Islands license is seen as unpriced by investors.
- Expansion into Namibia, South Africa, and Guyana progresses.
- Holzman aims to sell discoveries rather than become a producer.
Eco Atlantic, an oil and gas exploration company founded by Israeli CEO Gil Holzman, is currently undervalued by the market, according to Holzman. Despite expanding its portfolio and securing major partners like BP, TotalEnergies, and Navitas Petroleum, the company's stock has declined significantly. Holzman attributes this to the market not valuing new assets, particularly its stake in a Falkland Islands license, which he believes is priced at zero by investors.
Eco Atlantic's business model focuses on early-stage exploration in the Atlantic Margin, acquiring licenses at low costs, conducting initial geological work, and then bringing in major partners to fund the expensive drilling phase. This strategy aims to mitigate the financial risk of dry wells, as partners bear the brunt of drilling costs. Holzman emphasizes that the involvement of majors like BP and Total serves as external validation of the geological potential.
The company's portfolio spans Namibia, South Africa, Guyana, and the Falkland Islands. While the Falklands license has faced scrutiny due to geopolitical tensions with Argentina, Holzman points to progress in other areas, including a deal with BP in Namibia and advancements with Navitas in South Africa and Guyana. He believes the market is overlooking these developments.
Holzman plans to continue Eco Atlantic's strategy of finding and proving resources, then selling them, rather than becoming a production company. He aims to return significant capital to shareholders. The company is currently awaiting government approvals for several key deals, which he expects to close in the coming months, potentially boosting the stock value. Holzman also noted that while he is Israeli, the company is registered in Canada and traded in London and Toronto, with no immediate plans for an Israeli listing.