TIDMECO
RNS Number : 8207Q
Eco (Atlantic) Oil and Gas Ltd.
01 November 2021
1 November 2021
ECO (ATLANTIC) OIL & GAS LTD.
("Eco," "Eco Atlantic," "Company," or together with its
subsidiaries, the "Group")
Operational Update and Notice of AGM
Eco (Atlantic) Oil & Gas Ltd. (AIM: ECO, TSX -- V: EOG), the
oil and gas exploration company with licences in the proven oil
province of Guyana and the highly prospective basins of Namibia,
provides an operational update on the Group's activities and
announces notice of its annual and special meeting ("AGM").
Highlights
-- JHI well drilled by ExxonMobil establishes oil presence at Sapote-1, Guyana
-- Progress to define multi-million barrel targets on Orinduik, Guyana
-- Eco elected as Operator on PEL 99, Blocks 2111B & 2211A, Namibia
-- Eco negotiates new Joint Operating Agreements on all offshore Namibia licenses
-- Eco advances development of solar business in Europe
Guyana
Eco r eceived, on Saturday 30 October, a detailed update from
JHI Associates Inc. that ExxonMobil has successfully and safely
drilled the Sapote-1 well on the Canje Block, to a depth of 6,759
meters (22,172 ft), in 2,549 meters (8,362 ft) of water. The well
recorded hydrocarbon shows while drilling, and in the logging
sequence, in a deeper interval than anticipated, but had no shows
in the upper primary objective horizon. With sidewall coring and
wireline logging complete, ExxonMobil will now work to define the
reservoir properties, including porosity and permeability, and the
cored samples will be analysed for hydrocarbons.
As previously announced in June of this year, Eco acquired a
6.4% interest in JHI Associates Inc. ("JHI"), a private Canadian
company, which holds a 17.5% working interest ("WI") in the Guyana
Canje Block. JHI, with a current very strong cash balance, has
already paid for its 17.5% of the Sapote-1 well from treasury. No
costs are attributable to Eco.
On its primary asset in Guyana, the Orinduik Block, the JV
partners; (Eco Atlantic: 15% WI; Tullow Guyana B.V. 60% WI
(Operator); and TOQAP Guyana B.V. 25% WI), are currently advancing
toward target selection on the Block. The partnership has used
state-of-the-art processing technology to merge its seismic data
sets and to incorporate regional well results into target
selections. The teams are using conservative and proven sciences to
define sweet light oil drilling targets, likely within the proven
Cretaceous section. The partnership hopes to establish firm targets
in the near term and advance towards drilling. Eco and the JV
Partners have already delivered two substantial oil discoveries on
the Orinduik Block on the northernmost quadrant of the Block and
have worked diligently to define the parameters and identifiers
related to this heavy oil field discovery.
Orinduik continues to offer significant upside. The eastern
section of the Block is closer to the established Liza oil trend
than any other Block. ExxonMobil will next drill in 2021 the
Fangtooth-1 well just north and down dip of Orinduik on the
Stabroek Block. This well is very close to Orinduik and will test
some of the deeper sections. The partnership is focused on the
careful selection of locations able to drill a number of stacked or
multiple target sections with the opportunity to yield several
hundred million barrels. The eastern border of the Orinduik Block
is adjacent to and up dip from multiple ExxonMobil discoveries and
down dip from the proven light oil discovered in the Kanuku Block,
South of Orinduik and towards the continent.
Guyana continues to be one of the most prolific exploration
regions in the world. Formal estimates, following ExxonMobil's
latest discovery at Cataback-1, updated the current total
discovered resources in the Guyana portion of the Guyana-Suriname
Basin to over ten billion barrels of oil, discovered in the last
five years. Work continues regionally with the definition of the
trend. ExxonMobil is actively drilling with six drill ships, and
multiple wildcats are planned in the basin for the upcoming year in
the Basin by ExxonMobil and others. The Liza Destiny FPSO, pumping
120,000 bbls/day, is located a few kilometers from the Orinduik
Block, and within the past week a second FPSO, the Liza Unity has
arrived in Guyana and will be deployed east of Orinduik. This will
pump an additional 220,000 bbls/day. An additional eight production
facilities are being contemplated.
Colin Kinley, Co-Founder and COO of Eco Atlantic, commented:
"We are very focused on careful selection of the next target to
drill on Orinduik. The process has taken longer than we would have
liked with prolongation through reprocessing and Covid-19
constraints. However, each additional well drilled in the Basin,
both commercially developed or drilled and abandoned, adds to our
understanding of the area. We, and our partners, remain committed
to good practice in the well location selection. We are fully
funded for our share of the next well and are pushing the Operator,
towards a committed location, defined drilling date and rig
contract."
Namibia
Eco Atlantic has completed drafting the four new Joint Operating
Agreements ("JOA's") for its new Petroleum Licenses offshore
Namibia. We have received all paying partner approvals on the JOA's
and they are out for review with the National Petroleum Corporation
of Namibia ("NAMCOR"), and local partners. Namibia's Ministry of
Mines and Energy has approved Eco Atlantic to be the Operator of
all four blocks, which total some 7,065,484 acres (28,593 km(2) )
in the Walvis Basin.
Eco negotiated the reissuance and establishment of a new 10-year
life cycle for each of the four PEL's ("Petroleum Exploration
Licenses") in December 2020 and Licenses were issued in February
2021. Eco also negotiated doubling the size of PEL 99 with the new
Petroleum Agreement, in order to access the potential for new
prospective targets in the deeper horizons to the west of the
block.
The Company continues to monitor and assess opportunities, both
technical and corporate, particularly with the upcoming drilling
activity in the region. Two high impact deepwater wells are
anticipated to spud in southern Namibia in Q4 2021: TotalEnergies
Venus-1 well, using the Maersk Venturer, and Shell Namibia's
Graff-1 well, using the Valaris DS-10.
Colin Kinley added :
"In the near term, we look forward to the drilling campaigns
planned in Q4 at Venus-1 and Graff-1. TotalEnergies, Shell and
ExxonMobil rank amongst the leading oil finders in the world, and
their activity in the area is indicative of how the understanding
of prospects in Namibia is gaining maturity. Eco is a long time
player in Namibia and continues to work to define opportunities in
increasing shareholder value through exploration and strategic
corporate activities."
Solear Ltd.
Solear, a wholly owned subsidiary of Eco, is an independent
renewable energy company focused on solar development projects in
southern Europe.
In January 2021, Solear completed its first acquisition of a
fully contracted, permitted, and build ready project in Greece,
known as the Kozani Project. Throughout the year, Solear has
continued to build at low cost, assessing projects, developing
in-country relationships and seeking high turnover, early-stage
opportunities.
Solear has signed in October 2021 an MOU with B&S Power
Holdings Co. ("B&S Power"), an independent developer and
operator of solar parks in Europe and South America, to jointly
acquire and develop Ready to Build ("RTB") solar parks, funded
exclusively by an international EPC firm. As part of the Joint
Venture, B&S Power will inject their current development assets
base into Solear. The companies are now evaluating a 104MW RTB park
in Greece and additional transactions in Bulgaria, Hungary, and
Spain.
Gil Holzman, President and CEO commented:
"We are very proud of our accomplishments in 2021. We have
managed to grow and progress our assets portfolio in both Guyana
and Namibia and, importantly, have also managed to maintain and
strengthen the Company's financial position through strict cost
controls. The Company has also negotiated a capital investment into
treasury from Africa Oil Corp. and Charlestown Energy Partners from
New York.
"The Company has remained active as always and we managed to
create a flow of catalysts to our shareholders through both
drilling campaigns and other corporate activities. With all the
activities offshore Guyana and Namibia and with additional
corporate initiatives we are busy with, the stream of catalysts is
expected to continue throughout the end of 2021 and into 2022 and
onwards.
"Eco has also seeded a renewable energy arm that is being
managed and driven by a team of industry experts and through
strategic partnerships.
"We are very encouraged by the latest well results in Sapote-1.
The results, once defined, should warrant additional exploration
wells to test the deeper sections where the Sapote oil was present.
We remain confident that our past investment in JHI will generate
additional value for our shareholders over the longer term in the
exciting Canje Block. As a shareholder in JHI and given their
strong financial situation, we have no obligation to commit any
capital towards future drilling plans at Canje.
"Eco continues to be active in the market from a technical and
corporate perspective. While our technical teams look to define
targets and push for drilling in Orinduik, and further our
exploration in Namibia with our new licenses, we are still very
active corporately and look to increase shareholder value through
corporate and portfolio additions as well as through the drill bit.
"
Notice of AGM
Eco Atlantic also announces that its AGM will be held at 10:00
a.m. (EST) on 29 December, 2021 at the offices of the Chief
Financial Officer of the Company, at 559 Briar Hill Avenue,
Toronto, Canada ON M5N 1N1.
A copy of the notice of AGM, proxy form and accompanying
management information circular are available on the Company's
website and on Sedar at www.sedar.com .
**S**
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, Director
Colin Kinley, COO, Director
Alice Carroll, Head of Marketing +44(0)781 729 5070 | +1 (416)
and IR 318 8272
Strand Hanson Limited (Financial
& Nominated Adviser) +44 (0) 20 7409 3494
James Harris
James Bellman
Rory Murphy
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.
Qualified Person's Statement:
Colin Kinley, Chief Operating Officer of Eco Atlantic, has
reviewed and approved the technical information contained within
this announcement in his capacity as a qualified person, as
required under the AIM rules. Mr Kinley has over 40 years'
experience in the oil and gas industry.
Notes to editors:
About Eco Atlantic:
Eco Atlantic is a TSX-V and AIM quoted 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.
In Guyana, Eco Guyana holds a 15% Working Interest alongside
TOQAP Guyana B.V. ("TOQAP") a company jointly owned by
TotalEnergies E&P Guyana B.V. (60%) and Qatar Petroleum (40%)
and Operator 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 ExxonMobil Operated
Stabroek Block, on which twenty discoveries have been announced and
over 9 billion BOE recoverable resources are estimated. On 28 June
2021, Eco acquired a 6.4% interest, with the option to increase its
stake to 10%, in JHI Associates Inc. a private company which holds
a 17.5% WI in the 4,800km(2) Canje Block. The Canje Block is
operated by ExxonMobil and is held by Working Interests partners
Esso Exploration & Production Guyana Limited (35%), with
TotalEnergies E&P Guyana B.V. (35%), JHI Associates (BVI) Inc.
(17.5%) and Mid-Atlantic Oil & Gas Inc. (12.5%).
Jethro-1 was the first major oil discovery on Orinduik Block.
The Jethro-1 encountered 180.5 feet (55 meters) of net heavy oil
pay in excellent Lower Tertiary sandstone reservoirs. Joe-1 was the
second discovery on the Orinduik Block and comprised of high
quality oil-bearing sandstone reservoir, with a high porosity of
Upper Tertiary age. The Joe-1 well encountered 52 feet (16 meters)
of continuous thick sandstone.
In Namibia, the Company holds interests in four offshore
petroleum licences totalling approximately 28,593km(2) with over
2.362bboe of prospective P50 resources in the Walvis Basin. These
four licences, Cooper, Guy, Sharon, and Tamar are being explored
with industry partners with Eco Operating and maintaining an
average 60% Working Interest. Eco has been granted a drilling
permit on its Cooper Block (Operator).
Eco Atlantic is 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.
Solear offers investors exposure to a portfolio of pre-construction
opportunities across the renewable energy value chain, from
Ready-to-Build to early-stage development.
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END
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