TIDMECO
RNS Number : 7857F
Eco (Atlantic) Oil and Gas Ltd.
31 October 2018
31 October 2018
ECO (ATLANTIC) OIL & GAS LTD.
("Eco", "Eco Atlantic", "Company" or, together with its
subsidiaries, the "Group")
Guyana President Approves Eco Atlantic's Transfer of 25%
Interest in Orinduik Block to Total Petroleum
Total will transfer USD$12.5m to Eco
Eco (Atlantic) Oil & Gas Ltd ("Eco Atlantic") (AIM: ECO,
TSX-V: EOG), the oil and gas exploration company with licenses in
highly prospective regions in Guyana and Namibia, announces today
that, further to the Company's announcement of 13 September 2018,
the Honourable David Granger, President of the Cooperative Republic
of Guyana and the Minister Responsible for Petroleum, has approved
the transfer of the 25% working interest ("WI") in the Orinduik
Block, offshore Guyana ("Orinduik"), from Eco Atlantic (Guyana)
Inc., a wholly owned subsidiary of the Company, to Total
Petroleum's subsidiary company Total E&P Activités Pétrolières
("Total").
Highlights:
- Transfer of 25% WI in Orinduik from Eco to Total approved by
President of Guyana
- Total to transfer Eco USD$12.5m in exchange for WI
- Eco therefore fully funded for current 2019 drill programme on
Orinduik
In September 2017, Total acquired, for USD$1.0 million paid to
Eco, an option to farm into a 25% working interest in Orinduik upon
delivery of processed 3D data from the 2,550 km(2) survey shot on
the block by Eco and its operating partner Tullow (60%) (the
"Option"). On September 12, 2018 Total exercised its right to
acquire the 25% WI from Eco, and with government approval now
having been received for the transfer, Total will now shortly pay
Eco an additional USD$12.5 million cash consideration in accordance
with the Option.
Following the formal completion of the transaction, the WI on
the Block will be:
Tullow - 60% (Operator)
Total - 25%
Eco - 15%
Colin Kinley, Chief Operating Officer of Eco, stated:
"We are pleased to have received approval from President Granger
so promptly after submitting all of the requested transfer
documents. The new team in the Ministry were thorough and effective
in this swift and timely approval process and this allows the
Orinduik partners to next focus on our 2019 drilling program."
Gil Holzman, Chief Executive Officer of Eco, commented:
"We are very glad to be able to move ahead so effectively and
swiftly in Guyana, significantly ahead of our committed licence
schedule. We are thankful to the Guyana authorities and the
honourable President for their approval to allow us to bring Total
into the block. Eco's team brought Orinduik to the table prior to
the first ExxonMobil Liza discovery, deeming the block to be a
high-graded opportunity, selected from multiple basins we had
researched and evaluated around the world. We are delighted to see
Orinduik maturing into what has the potential to be a large-scale
field. Following the joint signature of the Petroleum Agreement
with Tullow, and now with Total's Option exercise, our belief in
the prospectivity of the Block and our strategy to partner with
world class oil companies is only strengthened. We look forward to
drilling at least one well on Orinduik alongside our partners in
2019. With the USD$12.5m that we will now receive from Total, and
together with our current strong cash position we are fully funded
for our drilling programme."
**ENDS**
For more information, please visit www.ecooilandgas.com or
contact the following:
Eco Atlantic Oil and Gas +1 (416) 250 1955
Gil Holzman, CEO
Colin Kinley, COO
Alan Friedman, VP
Strand Hanson Limited (Financial & Nominated
Adviser) +44 (0) 20 7409 3494
James Harris
Rory Murphy
James Bellman
Brandon Hill Capital Limited (Joint Broker) +44 (0) 20 3463 5000
Oliver Stansfield
Jonathan Evans
Robert Beenstock
Pareto Securities Limited (Joint Broker) +44 (0) 20 7786 4370
Soren Clausen +44 (0) 20 7786 4382
Davide Finelli +44 (0) 20 7786 4398
Matilda Mäkitalo +44 (0) 20 7786 4375
Blytheweigh (PR) +44 (0) 20 7138 3204
Tim Blythe
Julia Tilley
Simon Woods
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014.
Notes to editors
Eco Atlantic is a TSX-V and AIM listed Oil & Gas exploration
and production Company with interests in Guyana and Namibia where
significant oil discoveries have been made.
The Group aims to deliver material value for its stakeholders
through oil exploration, appraisal and development activities in
stable emerging markets, in partnership with major oil companies,
including Tullow, Total and Azinam.
In Guyana, Eco Guyana holds a 15% working interest alongside
Total (25%) and Tullow Oil (60%) in the 1,800 km(2) Orinduik Block
in the shallow water of the prospective Suriname-Guyana basin. The
Orinduik Block is adjacent and updip to the deep-water Liza Field
and Snoek, Payara, Pacora, Turbot, Longtail and Hammerhead
Discoveries, recently discovered by ExxonMobil and Hess, which is
estimated to contain in excess of 4.2 billion barrels of oil
equivalent, making it one of a handful of billion-barrel
discoveries in the last half-decade.
In Namibia, the Company holds interests in four offshore
petroleum licences totalling approximately 25,000km(2) with over
2.3 billion barrels of prospective P50 resources in the Walvis and
Lüderitz Basins. These four licences, Cooper, Guy, Sharon and Tamar
are being developed alongside partners Azinam and NAMCOR. Eco has
been granted a drilling permit on its Cooper Block (Operator).
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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