TIDMECO
RNS Number : 8377G
Eco (Atlantic) Oil and Gas Ltd.
30 November 2020
30 November 2020
ECO (ATLANTIC) OIL & GAS LTD.
("Eco," "Eco Atlantic," "Company," or together with its
subsidiaries, the "Group")
Eco Atlantic Re-issued all Namibia Offshore Licenses
Increases its sizeable strategic position in sought after
frontier exploration region
Eco (Atlantic) Oil & Gas Ltd. (AIM: ECO, TSX -- V: EOG), an
oil and gas exploration company with licences in highly prospective
regions in Guyana and Namibia, has successfully negotiated the
reissuance of its four licences in the Walvis Basin, Offshore
Namibia conditional to customary final government signature. The
Company has agreed terms and conditions and been awarded the four
new Petroleum Exploration Licenses ("PEL's") on its existing
offshore blocks, leading to the expansion of its acreage
position:
Size of Licence Controlling
Licence acreage Block reference ownership interest
-------- ------------- --------------------- ----------- -----------------
Cooper 5,788 Km(2) Block 2012A 54.3% WI Operator
------------- --------------------- ----------- -----------------
Sharon 5,700 Km(2) Block 2213 56.7% WI Operator
------------- --------------------- ----------- -----------------
Guy 11,457 Km(2) Blocks 2111B & 2211A 47.2 % Majority Partner
WI
------------- --------------------- ----------- -----------------
Tamar 5,648 Km(2) Blocks 2211B & 2311A 85% WI Operator
------------- --------------------- ----------- -----------------
Eco has negotiated the reissuance and establishment of a new
10-year life cycle for each of the four PEL's. Each license has a
participation of a standard 10% Working Interest ("WI") with
NAMCOR, Namibia's National Petroleum Corporation and in keeping
with the Company's support of local interests, Eco has negotiated
and established a 5% WI with local Namibian business partners on
each block. Azinam Group also participates in a minority capacity
on the Cooper, Sharon and Guy Blocks.
With the establishment of the new PEL's, the Company has doubled
the size of its Guy block acreage, increasing the potential for new
prospective targets in the deeper horizon to the West of the block.
The new PELs cover approximately 28,593 km(2) , with over 2.362
Billion BOE of prospective P50 resources.
Gil Holzman, President and Chief Executive Officer of Eco
Atlantic, commented:
"Successfully renegotiating our four licences offshore Namibia
and being awarded over 28,500 km(2) in one of the most exciting
exploration hotspots in the world is a significant milestone for
Eco. Participation in the regional exploration with a number of the
major IOCs now in Namibia, and having the Namibia Ministry of Mines
and Energy acknowledge both our long term investment and our
contribution to the fundamental exploration of the region, is very
meaningful, both for us as a business and an explorer.
"Eco has made a significant investment in these offshore blocks
in the Walvis Basin to date and we have been able to increase our
already substantial footprint (now the second largest after
ExxonMobil) in a highly prospective region that has attracted the
interest of a number of the major IOCs.
"The recent wildcat discoveries in South Africa and the entry
into Namibia by ExxonMobil, Total, Qatar Petroleum and Shell over
the last few years give us significant confidence that further
discoveries will soon be made in Namibia. Near term, we look
forward to drilling campaigns planned by Total, Shell, M&P, and
ExxonMobil. These companies are amongst the leading oil finders in
the world. The new licenses represent a strategic value creation
opportunity for Eco Atlantic, amid the increased interest in the
area."
Colin Kinley Chief Operating Officer of Eco Atlantic
Commented:
"We have demonstrated our capacity at Eco, through our
opportunistic negotiations and deal flow, to maintain a path for
growth while protecting both our strong balance sheet and our
resources. The new exploration life cycle which we have and our
well thought out exploration and de-risking strategy supports both
our stakeholders and the people of Namibia.
"Like Namibia, in Guyana our path remains unaltered. We defined
the opportunity, negotiated the Orinduik Licence and brought in
material partners for both their technical and economic
contribution, and we have carefully maintained our independence and
ability to drive through to drilling without being anchored by
partners budget or ambitions. In all our agreements, we maintain
optionality and our own ability to drive the process. As the
majority stakeholder and controlling interest in all of our
Namibian blocks, we welcome leading-edge exploration partners to
bring their contribution to our ultimate ambition of discovery in
the country, while also maintaining our strong independent business
values.
"We very much appreciate the support of the Namibian Ministry of
Mines and Energy and our partners and we look forward to keeping
all our stakeholders appraised of developments over the coming
months."
**ENDS**
For more information, please visit www.ecooilandgas.com or
contact the following :
Eco Atlantic Oil and Gas c/o Celicourt +44 (0) 20 8434
2754
Gil Holzman, CEO, Director
Colin Kinley, COO, Director
Alice Carroll, Head of Marketing +44(0)781 729 5070 | +1 (416)
and IR 318 8272
Strand Hanson Limited (Financial
& Nominated Adviser) +44 (0) 20 7409 3494
James Harris
James Bellman
Berenberg (Broker) +44 (0) 20 3207 7800
Matthew Armitt
Detlir Elezi
Celicourt (PR) +44 (0) 20 8434 2754
Mark Antelme
Jimmy Lea
Hannam & Partners (Research Advisor)
Neil Passmore +44 (0) 20 7905 8500
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014.
Notes to editors:
About Eco Atlantic:
Eco Atlantic is a TSX-V and AIM quoted Oil & 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, Total and Azinam.
In Guyana, Eco Guyana holds a 15% Working Interest alongside
Total (25%) and Operator Tullow Oil (60%) 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
ExxonMobil Operated Stabroek Block, on which eighteen discoveries
have been announced and over 9 Billion BOE of oil equivalent
recoverable resources are estimated. First oil production commenced
in December 2019 from the deep-water Liza Field, less than three
years from FID.
Jethro-1 was the first major oil discovery on Orinduik Block.
The Jethro-1 encountered 180.5 feet (55 meters) of net high-quality
oil pay in excellent Lower Tertiary sandstone reservoirs which
further proves recoverable oil resources. Joe-1 is the second
discovery on the Orinduik Block and comprises high quality
oil-bearing sandstone reservoir with a high porosity of Upper
Tertiary age. The Joe-1 well encountered 52 feet (16 meters) of
continuous thick sandstone which further proves the presence of
recoverable oil resources.
In Namibia, the Company holds interests in four offshore
petroleum licenses totalling approximately 28,593km(2) with over
2.362bboe of prospective P50 resources in the Walvis Basin. These
four licenses, Cooper, Guy, Sharon and Tamar are being developed
alongside partners Azinam and NAMCOR. Eco has been granted a
drilling permit on its Cooper Block (Operator).
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END
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