REG - Eco (Atlantic) O&G - Completion of Azinam Acquisition

Eco (Atlantic) Oil & GasAnnouncement

11/03/2022 07:00

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RNS Number : 4755E  Eco (Atlantic) Oil and Gas Ltd.  11 March 2022

11 March 2022

 

ECO (ATLANTIC) OIL & GAS LTD.

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

 

Completion of Azinam Acquisition

 

Further to the Company's announcement of 8 February 2022, 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 confirm that
it and Azinam Group Holdings ("Azinam") have completed all conditions required
to be completed in order to close Eco's acquisition of Azinam (the
"Acquisition") save and accept for receipt of the final approval of the TSX
Venture Exchange (the "Exchange") (the "Approval").

As disclosed in the Company's announcement of February 8, 2022, the
Acquisition will result in the issuance to Azinam of 40,170,474 common shares
(the "New Issue") in the capital of Eco ("Common Shares"), providing Azinam
with 16.5% of Eco's share capital as enlarged by such issue ("Enlarged Share
Capital"), providing for a cashless acquisition to become the sole owner of
Azinam's entire African portfolio.

In addition to the New Issue, Azinam will be issued warrants to acquire
additional Common Shares, exercisable only in the case of a producible
commercial discovery on Block 2B or Block 3B/4B, as follows: 20,000,000
warrants exercisable at a price of CAD$1.00 per Common Shares during the
twenty-four month period immediately following the date of receipt of the
Approval, and 20,000,000 warrants exercisable at a price of CAD$1.50 per
Common Share during the thirty-six month period immediately following the
Approval, such exercise dates to be extended in the event a well is not
drilled on Block 2B or Block 3B4B, until such time as a well is drilled on
either block and a producible commercial discovery declared. At no time will
Azinam be entitled to subscribe for and purchase such amount of Common Shares
which, when aggregated with its already exiting ownership of Common Shares,
would result in Azinam being the registered or beneficial holder of more than
19.9% of the then issued and outstanding Common Shares, without the prior
written consent of the Exchange and Eco and in accordance with the policies of
the Exchange.  Eco has agreed that, for as long as Azinam holds at least a
12.5% interest in Eco's share capital, it shall be entitled to nominate one
director for election to Eco's board of directors.

In connection with the Acquisition, a fee of 350,000 Common Shares and
US$50,000 will be payable to an arms length third party in connection with
their advisory services to Eco.

Eco will disseminate a further press release confirming final approval by the
Exchange and the issue of the New shares.

 

Gil Holzman Co-Founder and CEO of Eco Atlantic commented:

 

"We are pleased to have completed this acquisition, subject to final Approval
to issue the shares. we now own and operate a number of highly prospective
licences in three of the most exciting regions for exploration in the world:
Guyana, Namibia and South Africa. We continue to make strong progress towards
the upcoming drilling of the Gazania-1 well, offshore South Africa, and
following the signing of the rig contract earlier in the month we anticipate
drilling to commence in late Q3 2022.  We look forward to making further
updates on our strategic acreage in due course."

 

**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 Marketing and IR                    +44(0)781 729 5070 | +1 (416) 318 8272
 Strand Hanson Limited (Financial & Nominated Adviser)

                                                            +44 (0) 20 7409 3494
 James Harris

 James Bellman

 Berenberg (Broker)                                         +44 (0) 20 3207 7800
 Emily Morris

 Detlir Elezi

 Celicourt (PR)                                             +44 (0) 20 8434 2754
 Mark Antelme

 Jimmy Lea
 Hannam & Partners (Research Advisor)
 Neil Passmore                                              +44 (0) 20 7905 8500

 

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).

 

Notes to editors:

 

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 consuming oil and
gas in stable emerging markets near to infrastructure.

 

Offshore Guyana in the proven Suriname-Guyana Basin, the Company holds a 15%
Working Interest in the 1,800 km(2) Orinduik Block Operated by Tullow Oil,
and also indirectly through a soon to be 7.3% shareholding in JHI Associates
Inc. a private company which holds a 17.5% working interest in the
4,800km(2) Canje Block Operated by ExxonMobil.   In Namibia, the Company
holds Operatorship and 85% Working Interests in four offshore Petroleum
Licences: PEL's: 97, 98, 99 and 100 totalling 28,593 km(2) in the Walvis
Basin.

 

Offshore South Africa, Eco will, subject to completion of its acquisition of
Azinam Group Limited, become designated Operator and hold a 50% working
interest in Block 2B, and a 20% Working Interest of Blocks 3B/4B, totalling
some 20,643 km(2).

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