Eco (Atlantic) Oil & Gas Ltd (“Eco Atlantic”) (AIM: ECO, TSX-V: EOG), the oil and gas exploration company with licenses in highly prospective regions offshore Guyana and Namibia, is pleased to announce the completion of its Farm-Out Agreement with Total Petroleum's subsidiary Total E&P Activités Pétrolières (“Total”) on Eco's Orinduik block, offshore Guyana (“Orinduik”). All required Government authorisations have been obtained, the relevant partners' approvals have been executed, and the necessary government transfer fees have been paid. Accordingly, Total has transferred to Eco yesterday the balance of USD $12.5 million for a 25% Working Interest (“WI”) in Orinduik.
With completion of the transaction, the working interests on Orinduik are now as follows:
• Tullow - 60% WI (Operator)
• Total - 25% WI
• Eco - 15% WI
Colin Kinley, Chief Operating Officer of Eco, commented:
“We are pleased to confirm that the Farm-Out to Total is now complete and this allows us to progress efficiently to the next stage of exploration. The Company has advanced quickly through the stages of 2D interpretation and 3D surveying, processing and interpretation. Now, with Total on board and being fully funded to drill, we look forward to moving ahead, finalizing drilling targets and approving the 2019 drilling budget for Orinduik. We have remained well ahead of our committed schedule, being partnered with ambitious and highly experienced partners, and we look forward to advancing through drilling – years in advance of our committed timing under the terms of the Orinduik licence.”
Gil Holzman, Chief Executive Officer of Eco, commented:
“The completion of this Farm-Out to Total is not just the culmination of years of hard work from the Eco team, who identified Orinduik as a high-grade opportunity even before ExxonMobil's Liza discovery on the adjacent Stabroek block, but is also the beginning of an exciting period where we can now work officially alongside two world-class partners, Tullow and Total, to determine drilling targets for at least one well and potentially more on Orinduik in mid 2019.
“Having now received the USD$12.5 million from Total for their 25% working interest, our cash position has been further strengthened and we are fully funded for next year's drilling programme. We look forward to updating the market soon on progress on Orinduik and information regarding the proposed drilling programme.”