Eco (Atlantic) Oil & Gas Ltd (AIM:ECO, TSX-V:EOG) is in line to receive money from the sale of the Kozani solar energy project in Greece.
The project has been sold by Solear to Nepcoe Capital Partners and PowerChina New Energy Power for roughly €1.8mln, thus enabling the repayment of a loan advanced to Solear last year by Eco. Eco expects to receive the funds by the end of this month.
Solear acquired the 10.57 megawatt Kozani project just over a year ago for a consideration of around €1.1mln (plus €417,000 for a grid connection bond) so the disposal represents about a 25% margin on the initial acquisition price. The repayment to Eco further strengthens the company's balance sheet, the AIM-listed oil and gas exploration company said.
"We are very pleased with this transaction and pleased that the first development we entered into, the Kozani project, has generated a 25% return for our shareholders in just a year,” said Gil Holzman, the co-founder and chief executive officer of Eco Atlantic.
“We have an exciting and busy year ahead, targeting a drilling campaign in H2 2022, and we look forward to keeping the market appraised on developments in our core exploration activities in South Africa, Namibia and Guyana, over the coming months. In addition, we will continue to further build our corporation to offer additional exploration catalysts as and when we believe these opportunities will be value accretive to our stakeholders,” he added.