Saturday, December 10, 2022

Eco Atlantic makes strategic share purchase in Canje Block ahead of 12-well campaign

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Eco (Atlantic) Oil & Gas Ltd. which holds a working interest in the Orinduik Block appears to be positioning itself for greater benefits with the recent purchase of additional shares in JHI Associates Inc. JHI is a private Canadian-based company that holds a 17.5% working interest in the Canje Block.

ExxonMobil, operator of the Block, is poised to execute a massive 12-well campaign in the highly prospective concession. This is pending approval from the Environmental Protection Agency (EPA).

With respect to the share purchase, Eco told the market on Wednesday that it secured an additional 800,000 common shares in JHI Associates Inc. in return for 1,200,000 new common shares in Eco.  The purchase of the 800,000 common shares in JHI is expected to be completed on January 21, 2022, increasing the total number of shares currently held by Eco in JHI to 5,800,000 shares. Eco also retains a warrant to subscribe for a further 9,155,471 new common shares in JHI at an exercise price of US$2.0 per share for a period of 18 months.

As announced on June 28, 2021, Eco acquired 5 million common shares representing a 6.4% interest in JHI.

Eco said this latest investment is consistent with its strategy to create shareholder value through advanced exploration programmes on the offshore Atlantic margins for advantaged barrels as developing nations bridge the essential reserve requirements through the stages of the energy transition.

On the heels of the share purchase, Chief Executive Officer (CEO) and Co-Founder of Eco, Gil Holzman said, “We are committed to creating material value for our shareholders through a multi catalyst, high impact, exploration portfolio. As such, we are pleased to increase our exposure in the Canje Block by building our equity holding in JHI.  This also marks another step in the broader consolidation amongst smaller exploration players, in which we want to lead.”

Holzman added, “Following the work undertaken on Canje in 2021, which ExxonMobil and partners in the block continue to review, and after the recent highly positive drilling results on the nearby Stabroek Block, we believe this to be another exciting opportunity in our portfolio.”

It was further noted that ExxonMobil and block partners are working to technically define additional drilling prospects in the Cretaceous and deeper in the Santonian, where the Sapote-1 well recorded hydrocarbon shows.

Offshore Guyana in the proven Suriname-Guyana Basin, Eco Atlantic holds a 15% Working Interest in the 1,800 km2 Orinduik Block operated by Tullow Oil.

In Namibia, the company holds Operatorship and 85% Working Interests in four offshore Petroleum Licences: PEL’s: 97, 98, 99 and 100 totalling 28,593 km2 in the Walvis Basin.

Offshore South Africa, Eco holds Operatorship and 50% working interest of Block 2B, and 20% Working Interest of Blocks 3B/4B and Nearshore 3B/4B, totalling some 21,603 km2. Eco Atlantic is also 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.

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