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Eco (Atlantic) Oil and Gas Ltd. Announces Strategic Acquisition of JHI
Strategic Acquisition of JHI and its Interest in Canje Block Offshore Guyana Further con...
About this update from Eco (atlantic) Oil & Gas Ltd.
[{"type":"text","content":"Eco (Atlantic) Oil and Gas Ltd. Announces Strategic Acquisition of JHIStrategic Acquisition of JHI and its Interest in Canje Block Offshore GuyanaFurther consolidating Eco's position as an exploration business of scaleTORONTO, ON / ACCESSWIRE / March 14, 2022 / Eco (Atlantic) Oil & Gas Ltd. (\"Eco,\" \"Eco Atlantic,\" \"Company,\" or together with its subsidiaries, the \"Group\") (AIM:ECO)(TSX‐V:EOG), the oil and gas exploration company focused on the offshore Atlantic Margins, announces today that it has signed a Commercially Binding Term Sheet to acquire 100% of JHI Associates Inc. (\"JHI\"), including JHI's 17.5% Working Interest (\"WI\") in the Canje Block offshore Guyana (the \"Acquisition\").Highlights· A proposed cashless acquisition, with a value of approximately US$52 million at the Company's current share price, which would make Eco the sole owner of JHI's cash balance and its 17.5% WI in the Canje Block· The Canje Block, offshore Guyana, is directly adjacent to the prolific Stabroek Block where ExxonMobil has discovered in excess of 10 Billion Barrels of Oil· Eco will acquire JHI's capital balance, which is expected to be a minimum of US$15 million upon completion of the Acquisition· Consideration in the form of new common shares issued to JHI's shareholders based on an exchange ratio of 1.1994 new Eco common shares and convertible securities leading to JHI shareholders holding approximately 34% of Eco post Acquisition at current share count· The Acquisition adds to Eco's strategic acreage position in Guyana and paves the way for further drilling activity on the Company's blocks over the coming years· The Acquisition is currently expected to close in Q2 2022 subject, inter alia, to the signing of an Arrangement Agreement and satisfactory completion of due diligence by Eco and any requisite Government of Guyana, Canje Block partners, and stock exchange approvals· On closing, JHI has the right to appoint two non-executive Directors to Eco's eight-member Board of the enlarged Group, bringing further exploration expertise to the CompanyInformation on the AcquisitionJHI is a private company incorporated in Ontario and headquartered in Toronto, Canada. If and once completed the Acquisition provides the enlarged Eco Group with ownership of 17.5% PI in the Canje Block offshore Guy...