Eco (Atlantic) Oil and Gas Ltd. Completion of Total Farm-Out and receipt of funds (6895I)
November 28 2018 - 1:00AM
UK Regulatory
TIDMECO
RNS Number : 6895I
Eco (Atlantic) Oil and Gas Ltd.
28 November 2018
28 November 2018
ECO (ATLANTIC) OIL & GAS LTD.
("Eco", "Eco Atlantic", "Company" or, together with its
subsidiaries, the "Group")
Completion of Total Farm-Out and receipt of funds
Eco (Atlantic) Oil & Gas Ltd ("Eco Atlantic") (AIM: ECO,
TSX-V: EOG), the oil and gas exploration company with licenses in
highly prospective regions offshore Guyana and Namibia, is pleased
to announce the completion of its Farm-Out Agreement with Total
Petroleum's subsidiary Total E&P Activités Pétrolières
("Total") on Eco's Orinduik block, offshore Guyana ("Orinduik").
All required Government authorisations have been obtained, the
relevant partners' approvals have been executed, and the necessary
government transfer fees have been paid. Accordingly, Total has
transferred to Eco yesterday the balance of USD $12.5 million for a
25% Working Interest ("WI") in Orinduik.
With completion of the transaction, the working interests on
Orinduik are now as follows:
-- Tullow - 60% WI (Operator)
-- Total - 25% WI
-- Eco - 15% WI
Colin Kinley, Chief Operating Officer of Eco, commented:
"We are pleased to confirm that the Farm-Out to Total is now
complete and this allows us to progress efficiently to the next
stage of exploration. The Company has advanced quickly through the
stages of 2D interpretation and 3D surveying, processing and
interpretation. Now, with Total on board and being fully funded to
drill, we look forward to moving ahead, finalizing drilling targets
and approving the 2019 drilling budget for Orinduik. We have
remained well ahead of our committed schedule, being partnered with
ambitious and highly experienced partners, and we look forward to
advancing through drilling - years in advance of our committed
timing under the terms of the Orinduik licence."
Gil Holzman, Chief Executive Officer of Eco, commented:
"The completion of this Farm-Out to Total is not just the
culmination of years of hard work from the Eco team, who identified
Orinduik as a high-grade opportunity even before ExxonMobil's Liza
discovery on the adjacent Stabroek block, but is also the beginning
of an exciting period where we can now work officially alongside
two world-class partners, Tullow and Total, to determine drilling
targets for at least one well and potentially more on Orinduik in
mid 2019.
"Having now received the USD$12.5 million from Total for their
25% working interest, our cash position has been further
strengthened and we are fully funded for next year's drilling
programme. We look forward to updating the market soon on progress
on Orinduik and information regarding the proposed drilling
programme."
**ENDS**
For more information, please visit www.ecooilandgas.com or
contact the following:
Eco Atlantic Oil and Gas +1 (416) 250 1955
Gil Holzman, CEO
Colin Kinley, COO
Alan Friedman, VP
Strand Hanson Limited (Financial & Nominated
Adviser) +44 (0) 20 7409 3494
James Harris
Rory Murphy
James Bellman
Brandon Hill Capital Limited (Joint Broker) +44 (0) 20 3463 5000
Oliver Stansfield
Jonathan Evans
Robert Beenstock
Pareto Securities Limited (Joint Broker) +44 (0) 20 7786 4370
Soren Clausen +44 (0) 20 7786 4382
Davide Finelli +44 (0) 20 7786 4398
Matilda Mäkitalo +44 (0) 20 7786 4375
Blytheweigh (PR) +44 (0) 20 7138 3204
Tim Blythe
Julia Tilley
Jane Lenton
Fergus Cowan
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014.
Notes to editors
Eco Atlantic is a TSX-V and AIM listed Oil & Gas exploration
and production Company with interests in Guyana and Namibia where
significant oil discoveries have been made.
The Group aims to deliver material value for its stakeholders
through oil exploration, appraisal and development activities in
stable emerging markets, in partnership with major oil companies,
including Tullow, Total and Azinam.
In Guyana, Eco Guyana holds a 15% working interest alongside
Total (25%) and Tullow Oil (60%) in the 1,800 km(2) Orinduik Block
in the shallow water of the prospective Suriname-Guyana basin. The
Orinduik Block is adjacent and updip to the deep-water Liza Field
and Snoek, Payara, Pacora, Turbot, Longtail and Hammerhead-1
Discoveries, recently discovered by ExxonMobil and Hess, which is
estimated to contain in excess of 4.2 billion barrels of oil
equivalent, making it one of a handful of billion-barrel
discoveries in the last half-decade.
In Namibia, the Company holds interests in four offshore
petroleum licences totalling approximately 25,000km(2) with over
2.3 billion barrels of prospective P50 resources in the Walvis and
Lüderitz Basins. These four licences, Cooper, Guy, Sharon and Tamar
are being developed alongside partners Azinam and NAMCOR. Eco has
been granted a drilling permit on its Cooper Block (Operator).
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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