Eco Shares Rise On Option Agreement With Total
September 26 2017 - 4:41AM
Dow Jones News
By Oliver Griffin
Shares in Eco Atlantic Oil & Gas Ltd. (EOG.V) rose sharply
in early trading as the company reported that its subsidiary, Eco
Guyana, had entered into an option agreement on its Orinduik Block
with Total E&P Activités Pétrolières SA, a subsidiary of Total
SA (TOT).
Eco said Total would pay $12.5 million to acquire a 25% interest
in the Orinduik Block offshore Guyana, and would also pay a $1
million option fee for the right to perform drilling and
exploration there.
Eco Guyana currently holds a 40% working interest in Orinduik.
Tullow, the block operator, holds the remaining 60%. On the
completion of the option agreement, Tullow will continue to hold
60%, while Total and Eco will hold 25% and 15% respectively.
The transaction will help Eco fund its share of the drilling
costs at least two wells in Orinduik as well as the cost of an
expanded 3D seismic survey of the block.
Shares at 0747 GMT were up 9.5%, or 1.63 pence, at 18.75 pence,
having risen as much as 14% in early trading.
Write to Oliver Griffin at oliver.griffin@dowjones.com
(END) Dow Jones Newswires
September 26, 2017 04:26 ET (08:26 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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