TIDMECO
RNS Number : 2855D
Eco (Atlantic) Oil and Gas Ltd.
28 June 2021
28 June 2021
ECO (ATLANTIC) OIL & GAS LTD.
("Eco," "Eco Atlantic," "Company," or together with its
subsidiaries, the "Group")
Subscription to raise 6.1m CAD (US$4.9m)
Eco (Atlantic) Oil & Gas Ltd. (AIM: ECO, TSX -- V: EOG), an
oil and gas exploration company with licences in the proven oil
province of Guyana and the highly prospective basins of Namibia, is
pleased to announce, further to its announcement earlier today,
that it has completed, subject to TSX Venture Exchange approval, a
private placement with strategic partner Africa Oil Corp. ("Africa
Oil") and Charlestown Energy Partners LLC ("Charlestown Energy"), a
Private Equity firm based in New York, USA, to raise approximately
6.1m CAD (the "Subscription").
Africa Oil has subscribed for 5,945,913 new common shares in Eco
at a price of 0.41 CAD per new common share (the "Subscription
Price") and will be granted the same number of warrants to acquire
common shares at the Subscription Price with a two-year duration.
Charlestown Energy has also subscribed for 9,000,000 new common
shares at the Subscription Price and will be issued the same number
of warrants on equivalent terms. The Subscription by Africa Oil and
Charlestown Energy will result in Africa Oil increasing its
interest in Eco to 19.99%, and Charlestown Energy increasing its
interest to 4.51%, of the issued share capital of Eco as enlarged
by the Subscription, in each case before any exercise of
warrants.
The 14,945,913 new common shares (the "Subscription Shares") to
be issued subject to TSX Venture Exchange approval (expected to be
received in the coming days), receipt of funds pursuant to the
Subscription and admission of the Subscription Shares to trading on
the TSX and on AIM ("Admission") , will represent, in aggregate,
approximately 7.5 per cent. of the Company's enlarged issued share
capital. On receipt of TSX Venture Exchange approval, application
will be made to the London Stock Exchange for the Subscription
Shares to be admitted to trading on AIM.
Related Party Transaction
Africa Oil is a substantial shareholder in Eco, holding more
than 10% of the Company's issued share capital, and is therefore a
related party as defined by the AIM Rules for Companies.
Accordingly, the subscription by Africa Oil (the "Africa Oil
Subscription") is a related party transaction pursuant to Rule 13
of the AIM Rules for Companies. The independent Directors for the
purposes of the Africa Oil Subscription, being the Directors other
than Keith Hill, a Director of Africa Oil, having consulted with
the Company's nominated adviser, Strand Hanson Limited, consider
that the terms of the Africa Oil Subscription are fair and
reasonable insofar as Eco's shareholders are concerned.
The Africa Oil Subscription is also a "Related Party
Transaction" (as such term is defined in Canada in the
"Multilateral Instrument 61-101 Protection of Minority Security
Holders in Special Transactions" (the "Instrument")) as it relates
to the issuance of shares to Africa Oil Corp., an "Insider" of Eco
by virtue of its shareholdings. The Company will comply with the
Instrument but expects to rely on the exemptions available in
Sections 5.5 and 5.7 of the Instrument as they relate to the
Subscription.
Gil Holzman, Co-Founder and Chief Executive Officer of Eco
Atlantic, commented:
"Our strategic partners at Africa Oil are further increasing
their shareholding through the placement, and we welcome the
investment from Charlestown Energy Partners which provides Eco with
additional funds for the JHI transaction and enables the second
well on Canje Block, Sapote-1, and preserves enough cash for the
drilling in our Orinduik Block. Eco and Africa Oil are committed to
jointly seek, analyse and fund exploration opportunities, and Eco
greatly appreciates their technical contribution and capital
support as we move forward."
**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
Colin Kinley, COO
Alice Carroll, Head of Marketing and +44(0)781 729 5070 | +1 (416)
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
Emily Morris
Detlir Elezi
Celicourt (PR) +44 (0) 20 8434 2754
Mark Antelme
Jimmy Lea
Ollie Mills
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 Regulation (EU) No. 596/2014 as it forms part of
United Kingdom domestic law by virtue of the European Union
(Withdrawal) Act 2018.
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
TOQAP Guyana B.V. ("TOQAP") a company jointly owned by Total
E&P Guyana B.V. (60%) and Qatar Petroleum (40%) and Operator
Tullow Oil (60%) in the 1,800 km2 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 twenty discoveries have been announced and over 9 billion BOE
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 heavy 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).
Eco Atlantic is a 70% 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.
Solear offers investors exposure to a portfolio of pre-construction
opportunities across the renewable energy value chain, from
Ready-to-Build to early-stage development.
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END
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