Eco Atlantic gets approval for transfer of 25% interest in Guyana's Orinduik Block

10/31/2018

LONDON -- Eco (Atlantic) Oil & Gas Ltd., the oil and gas exploration company with licenses in highly prospective regions in Guyana and Namibia, announces today that, further to the Company's announcement of Sept. 13, 2018, the Honourable David Granger, president of the Cooperative Republic of Guyana and the Minister Responsible for Petroleum, has approved the transfer of the 25% working interest (WI) in the Orinduik Block, offshore Guyana, from Eco Atlantic (Guyana) Inc., a wholly owned subsidiary of the Company, to Total Petroleum's subsidiary company Total E&P Activités Pétrolières.

Highlights:

  • Transfer of 25% WI in Orinduik from Eco to Total approved by president of Guyana
  • Total to transfer Eco $12.5 million in exchange for WI
  • Eco therefore fully funded for current 2019 drill program on Orinduik

In September 2017, Total acquired, for $1.0 million paid to Eco, an option to farm into a 25% working interest in Orinduik upon delivery of processed 3D data from the 2,550-km2 survey shot on the block by Eco and its operating partner Tullow (60%). On Sept. 12, 2018 Total exercised its right to acquire the 25% WI from Eco, and with government approval now having been received for the transfer, Total will now shortly pay Eco an additional $12.5-million cash consideration in accordance with the option.

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