REG - Eco (Atlantic) O&G - Termination of the proposed JHI Acquisition

Eco (Atlantic) Oil & GasAnnouncement

14/06/2022 07:00

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RNS Number : 7254O  Eco (Atlantic) Oil and Gas Ltd.  14 June 2022

14 June 2022

 

 

ECO (ATLANTIC) OIL & GAS LTD.

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

 

Termination of the proposed JHI Acquisition

 

Eco (Atlantic) Oil & Gas Ltd. (AIM: ECO, TSX ‐ V: EOG "Eco"), the oil
and gas exploration company focused on the offshore Atlantic Margins, and JHI
Associates Inc. ("JHI") have  mutually agreed that Eco will no longer proceed
with the proposed acquisition of the balance of the issued share capital of
JHI not currently held by it (the "Acquisition"). JHI holds a 17.5%
participating interest in the Canje Block offshore Guyana.

 

While all the main commercial points were agreed upon in keeping with the
Commercially Binding Term Sheet announced on 14 March 2022 (including the
proposed issuance of 127m new common shares of Eco to JHI shareholders), it
was not possible to agree on the terms of lock-up arrangements required by
Eco, designed to restrict and control any subsequent immediate sale of the
consideration shares to be issued to the shareholders of JHI, to provide Eco
Atlantic's shareholders with the appropriate levels of protection in such a
transaction. As a result, the Board of Eco Atlantic has decided not to
progress with the acquisition at the current time.

 

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

 

"With the exclusivity period of our JHI negotiations ending last night, we
have terminated the JHI proposed acquisition. We are unable to proceed without
the appropriate protection for our shareholders that such lock-up arrangements
were designed to provide.  We look forward to remaining a significant
shareholder in JHI with over 7% of the company and, as such, retain exposure
to the potential of the Canje Block. We wish the JHI management the best of
luck in growing and monetizing the business to benefit all shareholders.
 Notwithstanding termination of discussions, we and JHI may re-evaluate the
proposed acquisition at a future date.

 

We look forward to commencing our drilling campaigns planned in the
prospective Block 2B in South Africa and Guyana this year and providing
further corporate updates as appropriate."

 

 

**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

 

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 20% Working Interest in Blocks 3B/4B operated by Africa Oil
Corp., totalling some 20,643 km(2).

 

Cautionary Notes:

 

This news release contains certain "forward-looking statements", including,
without limitation, statements containing the words "will", "may", "expects",
"intends", "anticipates" and other similar expressions which constitute
"forward-looking information" within the meaning of applicable securities
laws. Forward-looking statements reflect the Company's current expectations,
assumptions, and beliefs, and are subject to a number of risks and
uncertainties that could cause actual results to differ materially from those
anticipated. These forward-looking statements are qualified in their entirety
by the inherent risks and uncertainties surrounding future expectations.

 

Important factors that could cause actual results to differ materially from
expectations include, but are not limited to, general economic and market
factors, competition, the effect of the global pandemic and consequent
economic disruption, and the factors detailed in the Company's ongoing filings
with the securities regulatory authorities, available at www.sedar.com
(http://www.sedar.com) . Although forward-looking statements contained herein
are based on what management considers to be reasonable assumptions based on
currently available information, there can be no assurance that actual events,
performance or results will be consistent with these forward-looking
statements, and our assumptions may prove to be incorrect. Readers are
cautioned not to place undue reliance on these forward-looking statements. The
Company undertakes no obligation to publicly update or revise any
forward-looking statements either as a result of new information, future
events or otherwise, except as required by applicable laws.

 

The TSX-V has neither approved nor disapproved the contents of this news
release. Neither the TSX-V nor its Regulation Services Provider (as that term
is defined in the policies of the TSX-V) accept responsibility for the
adequacy or accuracy of this release.

 

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