Gondwana Oil (CSE:GO) has recently completed its reverse takeover of Mantis Minerals on the Canadian Stock Exchange and started trading with ticker symbol ‘GO’. This blurb is meant as a short introduction why Gondwana could be an interesting investment, and this will be followed up by a more extensive report on the company later this month.
Gondwana Oil holds the option to negotiate to acquire 70% of the block which borders major companies like ENI (NYSE:E), Hess (NYSE:HES) and Lukoil (LUKOY), indicating there was a real rush to secure land blocks after Afren’s (LON:AFR) discovery of oil at its Jubilee project. Jubilee is just 30 kilometers away from the Gondwana block and has a total reserve estimate of 2 billion barrels of oil and produces in excess of 40 million barrels of oil per year.
The current operators of the Gondwana block have completed in excess of 2,700 kilometers in 3D seismic survey and more than 1,600 kilometers in 2D seismic survey, so when Gondwana eventually negotiates its earn-in into the project it will have access to a lot of historic data which will speed up the further exploration pace. At this moment, Gondwana Oil has a market capitalization of approximately C$10.5M for an enterprise value of C$7M as the company has recently raised C$3.5M in cash.
CEO Kojo Annan is surrounded by an excellent team of which COO Douglas Manner has an impressive background of being COO at Gulf Canada Resources which produced 150,000 barrels of oil-equivalent per day. On top of that, Gabriel Ollivier and Brad Holub which are on Gondwana’s technical advisory board were respectively the CEO and COO of UNX Energy which was acquired by HRT Participacoes (HRP.V) for a total consideration of C$730M in 2011.
We will release a more in-depth report on Gondwana Oil later this month.
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Disclosure: The author currently holds no position in Gondwana Oil. Gondwana Oil is not a sponsor of the website, but we were compensated by a third party to initiate coverage. Please see our disclaimer for current positions.
