An African-based subsidiary of upstart CSE-listed energy play Gondwana Oil (CSE:C.GO
, Stock Forum
) has drawn the exclusive rights
to negotiate for Ghana’s Offshore Cape Three Points South Block.
The block is surrounded by 20 discoveries, according to the company, which currently produce over 110,000 barrels per day, with the area boasting a 63% commercial success rate.
The company says of the news, “Gondwana has been working diligently towards this goal and believes that the Offshore Cape Three Points South Block, in the Tano Basin only 30kms from Jubilee, is one of the most important and prospective blocks in the prolific West African Transform Margin, which has been home to great exploration success and attracted multiple energy majors.”
This Block is located in the Tano Basin, only 30 kilometres from Jubilee.
Gondwana said the Jubilee discovery has created a staking rush up and down the coast of West Africa as major oil companies and entrepreneurial energy explorers seek the next major elephant-sized discovery.
The news is big for Gondwana, which has only been listed a short time and took the unusual listing tactic of opening the show with 1 billion shares at $0.05 each, reasoning that every half cent price increase would represent a double for investors.
So far, that strategy has worked to great effect, with shares sitting at $0.015 and daily volume in the millions.
And with a market cap of just $15.6 million, there might be a significant potential for more doubles to come.
FULL DISCLOSURE: Gondwana Oil is a Stockhouse Publishing client