Total Signs Option Agreement with Eco Atlantic on the Orinduik Block, offshore Guyana

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[{"type":"text","content":"Total Signs Option Agreement with Eco Atlantic on the Orinduik Block, offshore GuyanaTORONTO, ONTARIO / ACCESSWIRE / September 26, 2017 / Eco (Atlantic) Oil & Gas Ltd. (LSE: ECO, TSX-V:EOG), is pleased to announce that its subsidiary, Eco Atlantic (Guyana) Inc. (\"Eco Guyana\"), has entered into an option agreement on its Orinduik Block, offshore Guyana, with Total E&P Activités Pétrolières, a wholly owned subsidiary of Total SA (together \"Total\" and, the \"Option Agreement\").\n \nThe Option Agreement provides Total with an option to acquire a 25% Working Interest in the Orinduik Block from Eco Guyana (the \"Option\"). Eco Guyana currently holds a 40% Working Interest in Orinduik, and Tullow, the Operator, holds the remaining 60%. The Orinduik Block directly offsets a line of discovery wells recently drilled by Exxon in its Stabroek Block in the Guyana-Suriname Basin, with Exxon estimating between 2.25 and 2.75 billion barrels of recoverable oil.\n \nPursuant to the Option Agreement, Total will make an immediate payment of US$1,000,000 for the Option (the \"Option Fee\"), at its sole discretion, to Farm-in to the Orinduik Block for an additional payment in cash of US$12,500,000 to earn the 25% Working Interest. The exercise of the Option must be made within 120 days of completion of processing of the 3D seismic. The survey acquisition was completed on September 5th 2017 (\"The Seismic Data Report\") and processing is expected to take 2-3 months. The Option Fee is repayable in the unlikely event that the Seismic Data Report is not provided to Total by 1 June 2019.\n \nFollowing exercise by Total of the Option and once the transaction is completed and has received all regulatory approvals, including Government of Guyana approval, the Block Working Interests will be as follows:\n \nTullow - 60% (Operator)\nTotal - 25%\nEco Guyana - 15%\n \nIn the event that the Option is exercised, each party will pay its pro-rata working interest from that date forward.\n \nWith exploratory wells offshore Guyana expected to cost circa US$35 Million, Eco's participating interest is anticipated to be approximately US$5.25 Million per well. It is therefore projected that this transaction, if fully executed, will thus provide adequate funding to meet Eco's share of the costs to drill at least two wells on the Orinduik Block a...

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