Toronto, Ontario, January 9, 2017/ CNW ECO (ATLANTIC) OIL AND GAS LTD. (TSX-V:EOG) Eco (Atlantic) Oil & Gas Ltd. (“Eco Atlantic” or the “Company”), a TSX-V listed oil and gas exploration company, announces its intention to seek admission of its shares to trading on AIM.
Eco Atlantic is an oil and gas exploration company focused on the acquisition and development of unique upstream petroleum opportunities around the world.
Admission is expected to occur in January 2017. Strand Hanson Limited is acting as Financial & Nominated Adviser with Brandon Hill Capital as Lead Broker and Peterhouse Corporate Finance as Joint Broker to the Company in relation to its Admission.
Eco Atlantic is a leading Namibian oil & gas explorer with licences in highly prospective Atlantic margin offshore regions in South America and Africa where significant oil discoveries have been made:
In Namibia through wholly owned subsidiaries, the Company currently holds interests, some carried by Tullow Oil and Azinam, in four offshore petroleum licenses covering more than 32,000 square kilometers in the Walvis and Lüderitz Basins, in close proximity to major blocks controlled by Repsol and Tullow Oil.
- In partnership with Tullow Oil plc (“Tullow”), Eco (Atlantic) Guyana Inc. (“Eco Guyana”), the Company’s 94% owned subsidiary, holds a 40% working interest (“WI”) (Tullow 60% – Operator) in the 1,800 km2 Orinduik offshore block in the shallow water of the prospective Guyana-Suriname basin
- Adjacent and updip to Exxon Mobil’s recent world class Liza field discovery where recoverable resources could be c.1.4 Billion barrels and field development planning has begun in earnest
- Limited cost exposure – Tullow has agreed to carry Eco Guyana for US$1.25m of the 3D seismic survey required in the initial four years of the exploration programme work commitment
- Both parties have agreed to accelerate the defined work programme following major recent discoveries
- 10 year Petroleum Agreement (4+3+3) commenced in January 2016 and Joint Operating Agreement with Tullow.
The United States Geological Survey ranks the Guyana-Suriname basin as the world’s second-most prospective, underexplored offshore basin, with an estimated 13.6 billion barrels of oil and 32 trillion cubic feet of natural gas yet to be discovered.
It is in this basin that Eco Atlantic holds a 40% working interest in a significant licence, which is just 6.5 km from ExxonMobil’s world class Liza oil discovery.
ExxonMobil and Hess recently confirmed that the deep-water Liza Field is officially the largest commercial find in South America in 50 years and holds an estimated 1 billion to 1.4 billion barrels of oil equivalent, making it one of a handful of billion-barrel discoveries in the last half-decade. The Liza Field is adjacent to Eco Atlantic’s Orinduik Block.
Licence Overview – Orinduik Block
In January 2016, Eco Atlantic signed a Petroleum Agreement and is party to an Offshore Petroleum Licence with the Government of Guyana and Tullow Oil for the Orinduik Block offshore Guyana. The 1800 km² Orinduik block is situated in shallow water, 170 km offshore Guyana in the Suriname Guyana basin, and is located 6.5 km from the recent Exxon Mobil Liza discoveries.
Eco has a 40% working interest and Tullow Oil has a 60% working interest. Tullow Oil will be the operator and will pay Eco Atlantic US$0.4m and fully carry Eco Atlantic for approximately C$3m of the 2D and 3D survey for an initial 4 years work commitment. Details of the work programme are in the table below.
|Committed work programme|
|Initial 4 year licence term|
|First 3 year renewal period|
|Second 3 year renewal period|
- Eco Atlantic’s principal assets are three offshore petroleum licenses (Cooper 32.5% WI, Sharon 60% WI and Guy 50% WI) with over 2.3 Billion barrels (net to Eco Atlantic) of prospective P50 resources (best estimate unrisked) in the Walvis Basin
- Three licences cover more than 15,000 km2 and are adjacent to major farm-in activity including Repsol, Tullow, Murphy, OMV, and Galp
- Significant 3D and 2D seismic surveys and interpretation have been completed and several wells in the Walvis basin are expected to be drilled by various companies in 2017 and 2018
- Successful partnerships with major oil companies with carried work programmes – including Tullow and AziNam
- Environmental Impact Assessment survey over Cooper block (Namibia) approved to be carried out in 2017 in preparation for drilling permits
- Proven management track record in successfully acquiring, developing, operating, partnering and completing trade sales of resource assets
- The Company is proposing to raise £2-3 million (before expenses), that together with its current cash position, will be used to enhance its seismic exploration programme on its Orinduik Block in Guyana, to progress its work programme in Namibia and to pursue the identification, assessment and application for additional potential licence interests in both Guyana and other prospective West African basins
Gil Holzman, Chief Executive Officer of Eco, commented:
“We are delighted to announce our intention to list on AIM, probably the most attractive marketplace for us at a transformational time in Eco Atlantic’s development, as we look to progress our prospective licences in Guyana and Namibia towards discoveries and later production.
“Eco Atlantic has an attractive value proposition with licences located in highly prospective, sought after jurisdictions within close proximity to significant discoveries and farm-in activity. Notably, we will be the only AIM quoted oil and gas exploration company to hold an oil and gas asset in Guyana. Our Orinduik Block in Guyana, where we are partners with Tullow Oil, is just 6.5 km from Exxon Mobil’s Liza Field discoveries, dubbed by Wood Mackenzie as “the most exciting thing happening in Latin American exploration currently”. At the same time, the Walvis Basin where we have our licences, is a proven offshore petroleum system in Namibia and the “number-one African investment destination” according to the Global Petroleum Survey.
“We believe these assets and the exposure they provide for investors to the exciting markets of Guyana and Namibia, coupled with our clear strategy of partnering with mid-tier and major oil companies and developing through to production, and a management team with extensive oil and gas experience, sets Eco Atlantic apart from other exploration and development companies on the market.”
For more information please visit http://www.ecooilandgas.com/