REG - Eco (Atlantic) O&G - Further share purchase in JHI

Eco (Atlantic) Oil & GasAnnouncement

19/01/2022 07:05

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RNS Number : 9304Y  Eco (Atlantic) Oil and Gas Ltd.  19 January 2022

19 January 2022

 

ECO (ATLANTIC) OIL & GAS LTD.

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

 

 

Further share purchase in JHI, holder of Canje 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 that it has purchased an additional 800,000 common shares in JHI
Associates Inc. ("JHI") in return for 1,200,000 new common shares in Eco
("Consideration Shares").  The purchase of the 800,000 common shares in JHI
is expected to be completed on 21(st) January 2022, increasing the total
number of shares currently held by Eco in JHI to 5,800,000 shares.

As announced on 28 June 2021, Eco acquired 5 million common shares
representing a 6.4% interest in JHI Associates Inc. ("JHI"), a private
Canadian company, which holds a 17.5% working interest in the Guyana Canje
Block.  The Operator of the Canje block, ExxonMobil and block partners are
working to technically define additional drilling prospects in the cretaceous
and deeper in the santonian, where the Sapote-1 well recorded hydrocarbon
shows while drilling in 2021 and following the January 2022 santonian
Fangtooth-1 discovery on the prolific Stabroek Block offshore Guyana.

 

Following the above purchase, Eco will hold a total of 5,800,000 common shares
in JHI, representing approximately 7.35% of the issued common shares in JHI.
Eco also retains a warrant to subscribe for a further 9,155,471 new common
shares in JHI at an exercise price of US$2.0 per share for a period of
eighteen months (the "JHI Warrant"). If the JHI Warrant is exercised in full,
Eco will hold an interest, ceteris paribus, of 11.4% in JHI on a fully diluted
basis.

 

This investment is consistent with Eco's strategy to create shareholder value
through advanced exploration programs on the offshore Atlantic margins for
advantaged barrels as developing nations bridge the essential reserve
requirements through the stages of the energy transition.

 

Further details regarding the JHI Investment

 

As at 31 December 2020, JHI had net assets of approximately US$46.3 million
and recorded a net loss of approximately US$8.28 million. Based on the closing
share price of Eco on 18 January 2022 the Consideration Shares are valued at
approximately £312,000.

 

Application has been made for admission of the Consideration Shares, which
will rank pari passu with existing Common Shares, to trading on AIM
("Admission"). It is expected that Admission will become effective and trading
will commence at 8.00 a.m. on 24 January 2022.

Following Admission, the enlarged issued share capital of the Company will be
202,693,635 Common Shares. The above figure may be used by shareholders as the
denominator for the calculations by which they will determine if they are
required to notify their interest in, or a change to their interest in, the
share capital of the Company.

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

 

"We are committed to creating material value for our shareholders through a
multi catalyst, high impact, exploration portfolio. As such, we are pleased to
increase our exposure in the Canje Block by building our equity holding in
JHI.  This also marks another step in the broader consolidation amongst
smaller exploration players, in which we want to lead. Following the work
undertaken on Canje in 2021, which ExxonMobil and partners in the block
continue to review, and after the recent highly positive drilling results on
the nearby Stabroek block, we believe this to be another exciting opportunity
in our portfolio."

**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
 Matthew Armitt

 Emily Morris

 Detlir Elezi

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

 Jimmy Lea

 Ollie Mills
 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 holds Operatorship and 50% working interest of
Block 2B, and 20% Working Interest of Blocks 3B/4B and Nearshore 3B/4B,
totalling some 21,603 km(2).

 

Eco Atlantic is also a 100% shareholder in Solear Ltd., Solear is an
independent private clean energy investment company focused on low cost, high
yield solar development projects in southern Europe.

 

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