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Eco Oil hails Orinduik acquisition, Guy Namibia survey

Last updated: 20:40 02 Aug 2016 BST, First published: 15:40 02 Aug 2016 BST

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Brilliant outlook says Eco CEO Holzman

Eco (Atlantic) Oil & Gas Ltd (CVE:EOG) on Tuesday updated on recent corporate achievements and planned milestones for the remainder of 2016 following its earnings results for the year ended March 31.

In Guyana, completion of the acquisition of the Orinduik block offshore. In January, in partnership with Tullow Oil (), Eco Atlantic signed a 10-year petroleum agreement, and joint operating agreement with Tullow Oil as operator. This key Eco asset is adjacent to the significant Liza I and Liza II ExxonMobil discoveries.

In Ghana, the signing of a joint operating agreement on the Three Points West deepwater block offshore Ghana, and commencement of exploration activities.

In Namibia, the completion of an 870-square-kilometre, 3-D seismic survey, during the fourth quarter, on the Guy licence. The programme was completed in partnership with AziNam Ltd., which is now operator of that block. Processing and interpretation are currently under way and expected to be finalized during August.

Also, the completion of the first phase of interpretation of the 1,100 square km 3-D seismic survey on the Cooper licence, offshore Namibia.

Furthermore in Namibia, the Cooper, Sharon and Guy licences have been extended into the first renewal phase under the petroleum agreement for each licence, until March 18, 2018.

The second renewal phase under the PA for each licence in until March, 2020. In addition, the ministry in Namibia has waived the relinquishment requirement for the Cooper licence and, accordingly, the exploration work will continue on the entire block area. In accordance with the Petroleum Act, the block partners relinquished the ultra-deep half of Guy and the extreme shallow half of Sharon. Eco Atlantic has retained the highly prospective sections of each block.

Finally, in Namibia, the company experienced a year-on-year 40% reduction of general and administrative costs, compensation expenses and professional fees from a total of $2.5mln in 2015 to $1.5mln for 2016. Eco Atlantic has met all of its current work commitments under the various petroleum agreements' and is being cost carried and sufficiently financed to progress its exploration commitments for the fiscal year ahead.

"The last year has been incredibly active, entering into new prospective block in Guyana in partnership with Tullow Oil while progressing our work on current Ghana and Namibia licences,” said Eco Atlantic chief executive officer, Gil Holzman.

“We remain optimistic about the oil and gas sector, especially considering our robust portfolio of licenses and we look forward to another productive year that will no doubt will bring additional progress on all our blocks."

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