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Eco Atlantic grabs more shares in suspiciously awarded Canje Block
Kaieteur News – Eco (Atlantic) Oil & Gas Ltd., one of the smallest oil players in Guyana’s offshore basin, has moved to grab more shares in the highly prospective Canje Block.
Yesterday, Eco disclosed that it moved to secure an additional 800,000 common shares in JHI Associates Inc. in return for 1,200,000 new common shares in Eco. The purchase of the 800,000 common shares in JHI is expected to be completed on January 21, 2022, increasing the total number of shares currently held by Eco in JHI to 5,800,000 shares. Eco also retains a warrant to subscribe for a further 9,155,471 new common shares in JHI at an exercise price of US$2.0 per share for a period of 18 months.
Map showing the location of the Canje Block
It should be noted that JHI is a Guyana pure-play deepwater exploration company that was only founded in 2011. In 2014, JHI teamed up with Guyana-based Mid-Atlantic Oil and Gas Inc. (“MOGI”) which was awarded the Canje Block in 2015, just a few months before General and Regional Elections were held. Both companies are industry unknowns, had no wherewithal, and zero experience in deepwater drilling. In spite of no track record, JHI and its partner were awarded the block with no signing bonus to the country.
In 2016, JHI and Mid-Atlantic sold the major parts of their interest to ExxonMobil which allowed the American company to become the Operator. In 2018, Total Energies farmed into the Block. Five years of extensive technical and seismic data analysis led to the Canje partners identifying multiple drillable prospects and successfully applying for a multi-well drilling permit.
As announced on June 28, 2021, Eco acquired 5 million common shares representing a 6.4% interest in JHI Associates Inc., a private Canadian company, which holds a 17.5% working interest in the Canje Block.
Kaieteur News understands the Operator of the Canje block, ExxonMobil and block partners are working to technically define additional drilling prospects in the cretaceous and deeper in the Santonian, where the Sapote-1 well recorded hydrocarbon shows. Eco said this latest investment is consistent with its strategy to create shareholder value through advanced exploration programmes on the offshore Atlantic margins for advantaged barrels as developing nations bridge the essential reserve requirements through the stages of the energy transition.
Following the share purchase, Chief Executive Officer (CEO) and Co-Founder of Eco, Gil Holzman said, “We are committed to creating material value for our shareholders through a multi catalyst, high impact, exploration portfolio. As such, we are pleased to increase our exposure in the Canje Block by building our equity holding in JHI. This also marks another step in the broader consolidation amongst smaller exploration players, in which we want to lead.”
He added, “Following the work undertaken on Canje in 2021, which ExxonMobil and partners in the block continue to review, and after the recent highly positive drilling results on the nearby Stabroek block, we believe this to be another exciting opportunity in our portfolio.”
ABOUT ECO ATLANTIC
Offshore Guyana in the proven Suriname-Guyana Basin, Eco Atlantic holds a 15% Working Interest in the 1,800 km2 Orinduik Block Operated by Tullow Oil, and also indirectly through a soon to be 7.3% shareholding in JHI Associates Inc. a private company which holds a 17.5% working interest in the 4,800km2 Canje Block Operated by ExxonMobil.
In Namibia, the Company holds Operatorship and 85% Working Interests in four offshore Petroleum Licences: PEL’s: 97, 98, 99 and 100 totalling 28,593 km2 in the Walvis Basin.
Offshore South Africa, Eco holds Operatorship and 50% working interest of Block 2B, and 20% Working Interest of Blocks 3B/4B and Nearshore 3B/4B, totalling some 21,603 km2.
Eco Atlantic is also a 100% shareholder in Solear Ltd. Solear is an independent private clean energy investment company focused on low cost, high yield solar development projects in southern Europe.
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