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Eco (Atlantic) will use balance sheet strength to advance all fields

Published: 03:43 23 Nov 2017 EST

picture of oil rig
Eco has 40% of Orinduik

Eco (Atlantic) O&G’s (LON:ECO) balance sheet has been transformed by the recent investments from Africa Oil and Total, according to finance director Gadi Levin.

Africa Oil invested £8.5mln at 29p per share, while Total paid US$1mln (£760,000) for an option over the Orinduik Block, with a further US$12.5mln to come if it is exercised by the French group.

WATCH: Eco Atlantic happy and proud to welcome on board Africa Oil Corp

That would take liquid funds available to C$30mln (£17.7mln).

“These two transactions, with two such experienced industry leaders, have transformed the company's balance sheet, and we are now well positioned to continue to advance all of our exiting licenses, whilst perusing new opportunities in frontier areas,” said Levin.

Eco has a 40% interest in the Orinduik Block offshore Guyana and located adjacent to Stabroek where ExxonMobil has made a string of discoveries.

Tullow Oil is the operator and 60% stakeholder in Orinduik.

The first exploration period at Orinduik lasts four years and requires a review of existing 2D seismic as well as a new 3D survey, the completion of which triggers Total’s option.

READ: Eco Atlantic Oil & Gas advances drill plans offshore Namibia

Losses in the half year to September were C$3.96mln with cash of C$16.4mln.

Eco also has four blocks offshore Namibia, in the Walvis basin, where it is in the vicinity of Repsol, Tullow, BP and Galp. Prospective resources have been estimated in excess of 20bn barrels, in aggregate.

Offshore Ghana, Eco has a 50.5% stake in the Three Points West Block located nearby to Tullow’s Jubilee field as well as other discoveries by Hess, ENI and Lukoil.

Exciting time for Eco (Atlantic) as it passes on first seismic data to Total

Eco (Atlantic) Oil & Gas Ltd (LON:ECO CVE:EOG) CEO Gil Holzman tells Proactive they've forwarded on the first batch of seismic data shot by Tullow Oil (LON:TLW) over the Orinduik field. French giant Total has an option to take a 25% working interest in Orinduik from Eco for a payment...

on 02/22/2018