REG - Eco (Atlantic) O&G - Government Approval - Further Interest in Orinduik

Eco (Atlantic) Oil & GasAnnouncement

15/11/2023 07:00

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RNS Number : 4628T  Eco (Atlantic) Oil and Gas Ltd.  15 November 2023

 

 

 

15 November 2023

 

ECO (ATLANTIC) OIL & GAS LTD.

("Eco," "Eco Atlantic," "Company," or together with its subsidiaries, the
"Group")

 

Receipt of Government Approval for Operatorship

and Acquisition of Additional 60% Interest in Orinduik Block offshore Guyana

 

Eco (Atlantic) Oil & Gas Ltd. (AIM: ECO, TSX ‐ V: EOG), the oil and
gas exploration company focused on the offshore Atlantic Margins, is pleased
to announce Government approval of the transfer of 60% Working Interest and
Operatorship in the offshore Orinduik Block in Guyana from the Minister of
Natural Resources, Cooperative Republic of Guyana.

On 10 August 2023, the Company announced the signing of a Sale Purchase
Agreement pursuant to which its wholly owned subsidiary, Eco Guyana Oil and
Gas (Barbados) Limited ("Eco Guyana"), will acquire a 60% Operated Interest in
Orinduik Block, offshore Guyana, through the acquisition of Tullow Guyana B.V.
("TGBV"), a wholly owned subsidiary of Tullow Oil Plc. ("Tullow") in exchange
for a combination of upfront US$700,000 cash and contingent consideration.
The Company is pleased to announce that it has now received approval from
Minister of Natural Resources and the Government of Guyana for the transfer of
the one hundred percent (100%) shareholding interest in TGBV to Eco Guyana.
 

On completion of the transaction, Eco will become the Operator and hold an
aggregate 75% Participating Interest in the Orinduik Block, via subsidiary Eco
Orinduik B.V. following a scheduled name change ("Eco Orinduik"), which will
hold a 60% Operated Interest, and Eco (Atlantic) Guyana Inc. which holds a 15%
Participating Interest. TOQAP Guyana B.V will continue to hold a Participating
Interest of 25%. Completion of the transaction is expected before year-end
2023.

 

Colin Kinley, Co-founder and Chief Operating Officer of Eco Atlantic,
commented:

"We are very happy to have support from the Minister of Natural Resources and
the Government of Guyana and their approval to transfer 60% of the Working
Interest and Operatorship of the Orinduik Block to Eco.  We have always been
very involved with the exploration and interpretation of the Block, and our
experienced team will step directly into Operatorship to finalize target
selection.

"After nearly 10 years of exploration and interpretation, and multiple
regional discoveries at the Cretaceous level of close to 11 Billion Barrels of
recoverable oil, our team has a good understanding of the Cretaceous play and
we have a great deal of confidence in drilling our first well, targeting a
  stacked pay target in this well proven horizon.  This Transaction
structure allows Tullow to continue to share upside in a discovery.

"Eco now seeks qualified partners in this high-value play and has commenced a
formal farm-out process for the Block. Recent interest from supermajors and
other well capitalized energy companies in the latest licencing bid round in
Guyana, for blocks up dip of us, supports our thesis of the oil migration and
the high quality and charged reservoirs we see on our Block."

 

**ENDS**

 

 

For more information, please visit www.ecooilandgas.com or contact the
following:

 Eco Atlantic Oil and Gas                                c/o Celicourt +44 (0) 20 8434 2754
 Gil Holzman, CEO

 Colin Kinley, COO

 Alice Carroll, Head of Corporate Sustainability         +44(0)781 729 5070
 Strand Hanson (Financial & Nominated Adviser)

                                                         +44 (0) 20 7409 3494
 James Harris

 James Bellman

 Berenberg (Broker)                                      +44 (0) 20 3207 7800
 Matthew Armitt

 Detlir Elezi
 Echelon Capital (Financial Adviser N. America Markets)

 Ryan Mooney                                             +1 (403) 606 4852

 Simon Akit                                              +1 (416) 8497776

 Celicourt (PR)                                          +44 (0) 20 7770 6424
 Mark Antelme

 Jimmy Lea

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of
the European Union (Withdrawal) Act 2018 (as amended).

 

About Eco Atlantic:

 

Eco Atlantic is a TSX-V and AIM-quoted Atlantic Margin-focused oil & gas
exploration company with offshore license interests in Guyana, Namibia, and
South Africa. Eco aims to deliver material value for its stakeholders through
its role in the energy transition to explore for low carbon intensity oil and
gas in stable emerging markets close to infrastructure.

 

Offshore Guyana in the proven Guyana-Suriname Basin, the Company holds a 15%
Working Interest in the 1,800 km(2) Orinduik Block Operated by Tullow Oil. In
Namibia, the Company holds Operatorship and an 85% Working Interest in four
offshore Petroleum Licences: PELs: 97, 98, 99, and 100, representing a
combined area of 28,593 km(2) in the Walvis Basin.

 

Offshore South Africa, Eco is Operator and holds a 50% working interest in
Block 2B and a 26.25% Working Interest in Block 3B/4B operated by Africa Oil
Corp., totalling some 20,643km(2).

 

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