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Eco (Atlantic) Oil and Gas Ltd. Announces Acquisition of Further Interest in Orinduik Block
Acquisition of additional 60% Operated Interest in Orinduik Block Guyana from Tullow Oil TORO...
About this update from Eco (atlantic) Oil & Gas Ltd.
[{"type":"text","content":"Eco (Atlantic) Oil and Gas Ltd. Announces Acquisition of Further Interest in Orinduik BlockAcquisition of additional 60% Operated Interest in Orinduik Block Guyana from Tullow OilTORONTO, ON / ACCESSWIRE / August 10, 2023 / Eco (Atlantic) Oil & Gas Ltd. (AIM:ECO)(TSXV:EOG), the oil and gas exploration company focused on the offshore Atlantic Margins, is pleased to announce that it has signed a Sale Purchase Agreement (the \"Agreement\") pursuant to which its wholly owned subsidiary, Eco Guyana Oil and Gas (Barbados) Limited (\"Eco Guyana\"), will acquire a 60% Operated Interest in Orinduik Block, offshore Guyana, through the acquisition of Tullow Guyana B.V. (\"TGBV\"), a wholly owned subsidiary of Tullow Oil Plc. (\"Tullow\") (the \"Transaction\") in exchange for a combination of upfront cash and contingent consideration.The Transaction is in line with Eco's strategy to deliver material value for its stakeholders through early entry and exploring for hydrocarbons in some of the most prolific petroleum basins in the world. Eco, via its wholly owned subsidiary Eco (Atlantic) Guyana Inc, currently holds a 15% working interest in the Orinduik Block. On completion of the Transaction, Eco, as operator and majority interest holder in the Orinduik Block, intends to drive the exploration process and focus on its strategy to attract new partners to join the license and proactively engage in drilling.Transaction summary:US$700,000 cash payment upon transfer of TGBV's 60% Participating Interest and operatorship of the Orinduik licence to Eco Guyana, to be paid to Tullow Overseas Holdings B.V., the parent of TGBV (\"TOHBV\") on completion of the Transaction (the \"Initial Consideration\").Contingent consideration payable to TOHBV is linked to the success of a series of potential future milestones, as follows:US$4 million in the event of a commercial discovery;US$10 million payment upon the issuance of a production licence from the Government of Guyana; andRoyalty payments on future production - 1.75% of the 60% Participating Interest entitlement revenue net of capital expenditure and lifting costs.Transaction and payment of the Initial Consideration is subject to certain market-standard conditions precedent, including customary Government and JV partner approvals.Completion is expected to occur in the second half of 2023.On closing of t...