Eco Atlantic Oil & Gas Ltd (LON:ECO) has confirmed the completion of its farm-out transaction with Total.
The French oil major has now paid US$12.5mln to Eco, and, in return, it has received a 25% working interest in the Orinduik exploration project offshore Guyana.
It means the Orinduik project comprises Tullow Oil plc (LON:TLW) as an operator with a 60% stake, Total with 25% and Eco retaining 15%.
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Significantly, the transaction leaves Eco fully funded for its participation in the proposed 2019 drill programme at Orinduik, which lies in the exploration area adjacent to Exxon’s multi-billion barrel oil discoveries in the Liza area.
"The completion of this Farm-Out to Total is not just the culmination of years of hard work from the Eco team, who identified Orinduik as a high-grade opportunity even before ExxonMobil's Liza discovery on the adjacent Stabroek block, but is also the beginning of an exciting period where we can now work officially alongside two world-class partners, Tullow and Total, to determine drilling targets for at least one well and potentially more on Orinduik in mid-2019,” said Gil Holzman, Eco chief executive.
Colin Kinley, Eco chief operating officer, meanwhile, added: "The company has advanced quickly through the stages of 2D interpretation and 3D surveying, processing and interpretation.
“Now, with Total on board and being fully funded to drill, we look forward to moving ahead, finalizing drilling targets and approving the 2019 drilling budget for Orinduik.”
“We have remained well ahead of our committed schedule, being partnered with ambitious and highly experienced partners, and we look forward to advancing through drilling - years in advance of our committed timing under the terms of the Orinduik licence."