REG - Eco (Atlantic) O&G - Sale of Solear's Kozani Photovoltaic Park

Eco (Atlantic) Oil & GasAnnouncement

24/02/2022 07:00

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RNS Number : 6364C  Eco (Atlantic) Oil and Gas Ltd.  24 February 2022

24 February 2022

 

ECO (ATLANTIC) OIL & GAS LTD.

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

 

Sale of Solear's Kozani Photovoltaic Park

25% return generated and repayment of €1.8 million to Eco

 

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 the successful sale of the Kozani project in Greece by Solear Ltd.
("Solear") for c.€1.8m (c.$2 million) to Nepcoe Capital Partners Ltd
("Nepcoe"), in partnership with PowerChina New Energy Power Co., Ltd.
("PowerChina"), a Chinese state owned company active in civil engineering
construction and the renewable energy infrastructure industry. This
transaction enables the re-payment of this consideration to Eco Atlantic
pursuant to the shareholder loan advanced by Eco to Solear in 2021.

 

As announced on 26 January 2021, Solear acquired the 10.57 MW Kozani project
in Greece for a consideration of c.€1.1m (plus additional €417K as a grid
connection bond). The transaction was funded via a shareholder loan provided
to Solear by Eco Atlantic.

 

Since the Kozani project was acquired, Solear has further developed the asset
and brought it to a ready for construction stage, including necessary building
permits and a connection agreement with HEDNO (the Greek grid operator).

 

On 28 January 2022, Solear entered into a Share Purchase Agreement with Nepcoe
(in partnership with PowerChina as engineering partner) for the sale of the
holding companies for the Kozani project for a total consideration of
€1,793,680, which Eco will receive in cleared funds by the end of February
2022. The Disposal represents approximately a 25% margin on the initial
acquisition price of the Kozani project and the repayment to Eco further
strengthens the Company's balance sheet.

 

Nepcoe is a UK based renewables investment and asset management business
focused on creating a platform for access to renewable energy opportunities
that provides and generate predictable cash flows in combination with positive
environmental and social impact. Nepcoe has a strategic memorandum of
understanding with PowerChina to jointly identify, develop and construct up to
750MW renewable energy infrastructure in Europe.

 

 

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

 

"We are very pleased with this transaction and pleased that the first
development we entered into, the Kozani project, has generated a 25% return
for our shareholders in just a year. We want to congratulate Nepcoe and
PowerChina on this successful deal and believe they have acquired an excellent
project from Solear. We have an exciting and busy year ahead, targeting a
drilling campaign in H2 2022, and we look forward to keeping the market
appraised on developments in our core exploration activities in South Africa,
Namibia and Guyana, over the coming months. In addition, we will continue to
further build our corporation to offer additional exploration catalysts as and
when we believe these opportunities will be value accretive to our
stakeholders."

 

Stanley Goh, Managing Partner of Nepcoe commented:

 

"We would like to thank Eco for supporting us with this very smooth
transaction process. Kozani represents a bankable entry for Nepcoe Capital and
its engineering partner PowerChina in the Greek renewable energy market. I
wish the Eco and Solear teams all the best in their future endeavours."

 

**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 7.35% 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).

 

 

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