TIDMECO
RNS Number : 3280F
Eco (Atlantic) Oil and Gas Ltd.
20 February 2018
20 February 2018
ECO (ATLANTIC) OIL & GAS LTD.
("Eco Atlantic", or "the Company" or, together with its direct
and indirect subsidiaries, the "Group")
Acquisition of the Minority Interest in Eco's Guyana
Subsidiary
Eco (Atlantic) Oil & Gas Ltd. (AIM: ECO, TSX-V: EOG), the
oil and gas exploration company with licenses in highly prospective
regions in South America and Africa, is pleased to announce that
Eco (Guyana) Oil and Gas (Barbados) Ltd. ("Eco Barbados"), a wholly
owned subsidiary of the Company, has agreed to acquire the
remaining 6% interest in Eco (Atlantic) Guyana Inc. ("Eco Guyana"),
following which Eco Guyana will become a wholly owned subsidiary of
the Company (the "Acquisition"). Eco Guyana holds a 40% working
interest in the Orinduik Block, offshore Guyana, with the remaining
60% held by Tullow Oil (Operator).
The Acquisition is being affected via share purchase agreements
entered into between Eco Barbados and the minority shareholders of
Eco Guyana (the "Minority Shareholders"). The total consideration
paid by the Group will be US$200,000 with US$100,000 payable upon
closing, expected to be 27(th) February 2018, and US$100,000
payable 60 days thereafter, in addition to the issuance of a total
of 1,700,384 common shares of the Company (the "Common Shares").
The Common Shares, which will be issued to the Minority
Shareholders, represent approximately 1% of the Company's share
capital on a fully diluted basis.
The closing of the Acquisition is conditional upon TSX
regulatory approval and admission of the Common Shares to trading
on AIM.
In connection with the Acquisition, each Minority Shareholder
has agreed not to dispose of more than one-third of their Common
Shares, issued to them at closing of the Acquisition, for a period
of 90 days. An additional one-third of the Common Shares issued to
each Minority Shareholder may be disposed of from day 91 after
closing, with the remaining Common Shares held by the Minority
Shareholders being eligible to be disposed of after 181 days
following issuance.
Application will be made for the admission to trading on AIM of
the 1,700,384 Common Shares issued to the Minority Shareholders in
conjunction with the acquisition of the Eco Guyana shares.
Admission is expected to take place at 8.00am on 5 March 2018
("Admission").
Following Admission, the issued share capital of the Company
will consist of 159,195,217 common shares. This figure may be used
by shareholders as the denominator for the calculations by which
they will determine if they are required to notify their interest
in, or a change to their interest in, the share capital of the
Company under the FCA's Disclosure Guidance and Transparency
Rules.
Gil Holzman, President and CEO of Eco Atlantic Commented:
"The successful purchase of the remaining 6% minority shares in
Eco Guyana simplifies and strengthens our corporate structure and
provides additional flexibility for us to manage our Guyana assets
as we enter a year in which we are expecting significant activity
on our Blocks as well as potential growth in the region."
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 +44 (0) 20 7409
& Nominated Adviser) 3494
James Harris
Rory Murphy
James Bellman
Brandon Hill Capital Limited +44 (0) 20 3463
(Joint Broker) 5000
Oliver Stansfield
Jonathan Evans
Robert Beenstock
Pareto Securities Limited (Joint +44 (0) 20 7786
Broker) 4370
+44 (0) 20 7786
Soren Clausen 4382
+44 (0) 20 7786
4398
Davide Finelli +44 (0) 20 7786
Matilda Mäkitalo 4375
Peterhouse Corporate Finance +44 (0) 20 7469
(retail market advisor) 0930
Eran Zucker
+44 (0) 20 7138
Blytheweigh (PR) 3204
Nick Elwes
Tim Blythe
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.
Notes to editors
Eco Atlantic is a TSX-V and AIM listed oil and 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 and AziNam.
In Guyana, Eco Guyana holds a 40 percent working interest
alongside Tullow Oil (60 percent) 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,
recently discovered by ExxonMobil and Hess, which is estimated to
contain as much as 2.5 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 25,000 km(2) with over
2.3 billion barrels of prospective P50 resources in the Wallis and
Lüderitz Basins. These four licences (Cooper, Guy, Sharon, and
Tamar) are being explored alongside partners, which include Tullow
Oil, AziNam and NAMCOR. Significant 3D and 2D surveys and
interpretation have been completed with drilling preparations
expected to begin in 2018.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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