TIDMECO
RNS Number : 2555F
Eco (Atlantic) Oil and Gas Ltd.
26 October 2018
26 October 2018
ECO (ATLANTIC) OIL & GAS LTD.
("Eco Atlantic", the "Company", "Eco" or, together with its
subsidiaries, the "Group")
Operational and Tullow JV updates in Guyana and Namibia
Eco (Atlantic) Oil & Gas Ltd. (AIM: ECO, TSX-V: EOG), the
oil and gas exploration company with licenses in highly prospective
regions offshore Guyana and Namibia, announces updates with respect
to licence PEL30 in Namibia (the "Cooper Block") and its operations
in Guyana.
Namibia
Eco has received a formal notice from Tullow Namibia Limited, in
accordance with the JV parties 2014 Farm Out Agreement, confirming
that it is unable to either enter into the Second Renewal Period
under the PEL30 license ("Cooper Block") or to make a financial
commitment to drilling on the Block. The 2014 Farm Out Agreement
required Tullow to make a financial commitment to drilling one
exploration well before renewing its interest in the Second Renewal
Period in Q1 2019, and, in the event that a well was not drilled
having entered the Second Renewal Period, pay Eco a significant
penalty.
Tullow's decision is as a result of its own proposed farm in
partner, ONGC, as announced on 21 November 2017, now withdrawing
from their agreement with Tullow on PEL30 and so due to exploration
budget prioritisation Tullow will now transfer their 25% working
interest to Eco.
As a result, Eco has had the 1,100 km(2) 3D survey, full
processing and interpretation and past costs all paid for by Tullow
and it will now receive back Tullow's Working interest. On
completion of the transfer, Eco will now hold a 57.5% Working
Interest in the Cooper Block. With more than three and a half years
still to drill on the Cooper Block under the terms of the licence,
and with a drill ready target (The Osprey Prospect), the Company
has already started discussions with potential farm-in partners to
replace Tullow and to jointly drill the Osprey Prospect. Eco's
other partner on the Cooper Block, Azinam Ltd ("Azinam"), has
previously announced that it would like to proceed with further
exploration of the block, including the drilling of a well.
The revised working interests on completion of the transfer to
Eco of Tullow's interest in the Cooper Block will be:
Eco (Operator) - 57.5%
Azinam - 32.5%
Namcor - 10%
Guyana
The partners in the Orinduik Block, offshore Guyana, being
Tullow (Operator), Total Petroleum SA, and Eco, are in discussions
to accelerate its work programme and to consider adding an
additional well in Guyana in 2019. Additional announcements will be
made once drilling plans and targets selection are confirmed by the
partners.
Interest in the Orinduik is a follows:
Tullow (Operator) -- 60%
Total Petroleum SA - 25%
Eco - 15%
Gil Holzman, CEO of Eco commented:
"We thank Tullow for our four years' carried partnership on the
Cooper block and for advancing it through extensive 3D studies,
interpretation, and targets selection all the way to now being
drill ready. As partners on both sides of the Atlantic, we
understand Tullow's drilling budget prioritisation. This reflects a
shift in both Tullow's and Eco's priorities towards Guyana. Guyana
clearly remains the focus for both partners, as recently announced
by senior executives of both companies. The opportunity the
companies share on the Orinduik Block in Guyana is outstanding,
with much lower near-term risk, following the amazing success of
ExxonMobil on the adjacent Stabroek block and our own 3D data
interpetation. We expect 2019 to be a significant and defining year
for Eco."
Colin Kinley, COO of Eco commented:
"We are discussing the Cooper Block with other potential
industry partners, as there are many parties currently seeking
additional opportunities in the Walvis Basin as Exxon, Total, and
the other majors are now moving into the area as exploration
matures. Indeed, although unfortunate for Tullow, the company's
recent Cormorant dry hole further proved the existence of a working
source rock. Our increased interest in the Cooper Block, which is
defined as having P50 Prospective oil of over 800 million barrels,
is the opening of a new door with paid up exploration operations
and permitting in place. Eco has three and a half years to drill on
Cooper, providing us with ample time to put in place a new
partnership prior to drilling. We are continuously in discussions
with associates and partners in the region, so prior to drilling we
intend to farm down part of the 57.5% interest which we now
have.
"Tullow remains a fantastic partner for Eco in Guyana, where we
are well advanced, with Total entering the block there most
recently. The 2.9 billion barrels of oil equivalent that we have
defined on the Orinduik block continues to advance with all of the
Exxon discoveries, ongoing development drilling, and our continued
interpretation of the extensive seismic data. We are extremely
confident in what we have there and our selective and focused
exploration approach, with two of the world's best exploration
teams from Tullow and Total working with us, the prospect of a new
era for Eco Atlantic."
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 & Nominated
Adviser) +44 (0) 20 7409 3494
James Harris
Rory Murphy
James Bellman
Brandon Hill Capital Limited (Joint Broker) +44 (0) 20 3463 5000
Oliver Stansfield
Jonathan Evans
Robert Beenstock
Pareto Securities Limited (Joint Broker) +44 (0) 20 7786 4370
Soren Clausen +44 (0) 20 7786 4382
Davide Finelli +44 (0) 20 7786 4398
Matilda Mäkitalo +44 (0) 20 7786 4375
Blytheweigh (PR) +44 (0) 20 7138 3204
Tim Blythe
Julia Tilley
Simon Woods
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 & Gas exploration
and production Company with interests offshore Guyana and offshore
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, ONGC, Total and Azinam.
In Guyana, Eco Guyana holds a 15% Working Interest alongside
Tullow Oil (60%) and Total (25%) in the 1,800 km(2) Orinduik Block,
adjacent and updip to the deep-water Liza Field and Snoek, Payara,
Pacora, Turbot, Longtail and Hammerhead discoveries, recently
discovered by ExxonMobil and Hess, which are estimated to contain
in excess of 4 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 totaling approximately 25,000km(2) with over 2.3
billion barrels of prospective P50 resources in the Walvis and
Lüderitz Basins. These four licences, Cooper, Guy, Sharon and Tamar
are being developed alongside partners, which include Tullow Oil,
Azinam, and NAMCOR.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
UPDFESESIFASELS
(END) Dow Jones Newswires
October 26, 2018 02:00 ET (06:00 GMT)
Eco (atlantic) Oil & Gas (LSE:ECO)
Historical Stock Chart
From Apr 2024 to May 2024
Eco (atlantic) Oil & Gas (LSE:ECO)
Historical Stock Chart
From May 2023 to May 2024