REG - Eco (Atlantic) O&G - Approval of 6.25% Farm Out of 3B/4B, Guyana Update

Eco (Atlantic) Oil & GasAnnouncement

22/01/2024 07:00

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RNS Number : 3711A  Eco (Atlantic) Oil and Gas Ltd.  22 January 2024

22 January 2024

 

ECO (ATLANTIC) OIL & GAS LTD.

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

 

Government Approval for 6.25% Farm Out of Block 3B/4B to Africa Oil, Guyana
Operational Update, and Appointment of Non-Executive Director

 

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 that its wholly owned subsidiary, Azinam Limited ("Azinam"), has
received final government approval for the farm out of its 6.25% Participating
Interest in Block 3B/4B to Africa Oil Corp. ("Africa Oil") announced on 11
July 2023 (the "Transaction"). The Company also provides an operational update
on entering next license phase for Orinduik block and confirms, further to its
announcement of 2 January 2024, that Dr Oliver Quinn has been appointed as a
Non-Executive Director with immediate effect.

 

Final Transaction Approval

 

The South Africa Department of Mineral Resources and Energy ("DMRE") and the
Petroleum Agency South Africa ("PASA") have now provided Section 11 approval
to assign and transfer a 6.25% Participating Interest in Block 3B/4B, offshore
South Africa to Africa Oil SA Corp, a wholly owned subsidiary of Africa Oil.
 The Section 11 approval was the final consent required in order to complete
the Transaction, and accordingly all requisite regulatory approvals and deeds
in respect of the Transaction have now been signed and completed.

 

As per the terms of the Assignment and Transfer Agreement with Africa Oil (the
"Agreement"), Eco has received further payment of US$2.5m from Africa Oil.
Under the terms of the Agreement, upon a further farm out to a third party
into Block 3B/4B Eco will receive a further payment of US$4m from Africa Oil
and when the first well is spud an additional US$1.5m, will be due to the
Company from Africa Oil.

 

Orinduik License Operational Update

As Operator, Eco Orinduik BV, gave notice to the Minister of Natural Resources
of the Cooperative Republic of Guyana ("MNR") to enter the Second Phase of the
Second Renewal Period of the Orinduik License effective as of 14 January
2024.  This Second Phase has a commitment to drill one exploration well to
the Cretaceous formation during the remainder of the license period which ends
on 13 January 2026.   Further, Eco advised MNR last week that TOQAP Guyana
B.V (the SPV joint entity held by TotalEnergies and QatarEnergy 60:40) has
relinquished their 25% WI for strategic reasons and will not participate in
the next phase, the former TOQAP Guyana B.V 25% WI will be assigned to Eco
Guyana.  Subject to the requisite government notifications, Eco will remain
the Operator holding 40% WI in Orinduik License as Eco Guyana and 60% WI as
Eco Orinduik BV.

Non-Executive Director Appointment

 

On 2 January 2024, the Company announced that Dr Oliver Quinn had been elected
as a Director of the Company subject to completion of the due diligence by
Strand Hanson, the Company's Nominated Adviser, in accordance with the AIM
Rules for Companies and Nominated Advisers. The Company is pleased to confirm
that the aforementioned process has now been completed and Dr Oliver Quinn has
been appointed to Eco's Board with immediate effect as the nominee Director of
Africa Oil, which holds 14.84% of the Company's issued share capital.

 

Dr Quinn was appointed as the Chief Commercial Officer of Africa Oil in
September 2023, having previously been employed as Senior Vice President,
Corporate Development at Kosmos Energy Ltd. Dr Quinn started his career at
Shell and has 19 years of experience in the Oil & Gas industry. He is a
graduate of the University of Manchester, where he studied for a BSc (Hons),
Environmental & Resource Geology, and a graduate of the University of
Edinburgh where he completed a PhD in Petroleum Science. While Dr Quinn
replaces Keith Hill as Africa Oil's board nominee, the Board is pleased to
confirm that Mr Hill has agreed to remain as a Non-Executive Director of the
Company.

 

Gil Holzman, Co-founder and Chief Executive Officer of Eco Atlantic,
commented:

 

"I am delighted to welcome Oliver to our Board. His extensive technical and
commercial experience are an excellent addition for our Company entering into
2024 which is lining up to be a transitional year for the Company."

 

"With respect to Block 3B/4B, we are pleased to have received final approval
from the South African Government for our transaction with Africa Oil, which
now paves the way to completing a further farm out in respect of the Block and
the drilling of our identified targets of up to five wells."

 

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

"Knowing the material value and potential of Orinduik Block, Eco acquired
Tullow's 60% WI and has remained focused on drilling a massive, stacked pay
interval in the Southeastern quadrant of the block.  Eco Atlantic now
approved Operator intends to bring in new partners and to drill the
significant potential of the Cretaceous interval on the Guyana oil fairway.
With this well commitment, we now move into planning and engineering
preparations to drill in next 12-18 months.

 

We feel extremely positive about the future of the Orinduik block, receiving
significant interest from key industry partners and IOCs in our recently
commenced farm out process.  We will provide further updates to shareholders
on operational and farm out progress throughout the year. Eco is grateful to
the Government of Guyana and specifically the MNR for their collaborative
efforts and support in enabling Eco to now progress towards drilling."

 

 **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
 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

 

AIM Rules for Companies, Schedule 2(g) Disclosures

 

The following additional information is provided in accordance with paragraph
(g) of Schedule Two of the AIM Rules for Companies.

 

Dr Oliver Francis Quinn (aged 45)

 

 Current Directorships              Past Directorships (in the last five years)
 Mater Christi Multi-Academy Trust  Jadestone Energy (PHT GP) Lmited
                                    Medco Energi Thailand (Bualuang) Limited
                                    Medco Energi Thailand (E&P) Limited
                                    Ophir Indonesia (Kofiau) 2 LLC
                                    Ophir (Indonesia South East Sangatta) Limited
                                    Ophir Asia Limited
                                    Ophir Asia Pacific Pty Ltd
                                    Ophir Cote D'Ivoire (C1-513) Limited
                                    Ophir East Africa Holdings Limited
                                    Ophir East Africa Ventures Limited
                                    Ophir Energy Indonesia (ARU) Limited
                                    Ophir Energy Indonesia (Kofiau) 1 Limited
                                    Ophir Energy Indonesia (North Ganal) Limited
                                    Ophir Energy Indonesia (West Papua IV) 1 Limited
                                    Ophir Energy Indonesia Limited
                                    Ophir Equatorial Guinea (Block R) Limited
                                    Ophir Equatorial Guinea (EG-24) Limited
                                    Ophir Equatorial Guinea Holdings Limited
                                    Ophir Gas Marketing Limited
                                    Ophir Global New Ventures Limited
                                    Ophir Holdings & Services (UK) Limited
                                    Ophir Holdings & Ventures Limited
                                    Ophir Holdings Limited
                                    Ophir Indonesia (Kutai) Limited
                                    Ophir Indonesia (Madura Offshore) Pty Ltd
                                    Ophir Indonesia (North East Bangkanai) Limited
                                    Ophir Indonesia (Sampang) Pty Limited
                                    Ophir Indonesia (South Sokang) Limited
                                    Ophir Indonesia (West Bangkanai) Limited
                                    Ophir Indonesia (West Papua IV) 2 LLC
                                    Ophir LNG Limited
                                    Ophir Malaysia (Block 2A) Limited
                                    Ophir Mexico Holdings Limited
                                    Ophir Mexico Limited
                                    Ophir Myanmar (Block AD-3) Limited
                                    Ophir Pipeline Limited
                                    Ophir SPV Pty Ltd
                                    Ophir Tanzania (Block 1) Limited
                                    Ophir Tanzania (Block 3) Limited
                                    Ophir Tanzania (Block 4) Limited
                                    Ophir Vietnam Block 12W B.V.
                                    Salamander Energy (Bualuang Holdings) Limited
                                    Salamander Energy (Glagah Kambuna) Limited
                                    Salamander Energy (JS) Limited
                                    Salamander Energy (Malaysia) Limited
                                    Salamander Energy (North Sumatra) Limited
                                    Salamander Energy (S.E.Asia) Limited
                                    Salamander Energy Group Limited
                                    Salamander Energy Limited
                                    Santos Sabah Block R Limited

 

Dr Quinn currently holds no direct interests in the Company's Common Shares,
although holds 31,750 common shares and 234,300 options over common shares in
Africa Oil, a 14.48% shareholder in the Company.

 

There is no further information to be disclosed pursuant to Schedule 2(g) of
the AIM Rules for Companies.

 

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 operates a
75% Working Interest in the 1,800 km(2) Orinduik Block. 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 20% Working Interest in Block 3B/4B totalling some
20,643km(2).

 

 

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