Eco (Atlantic) Oil & Gas (AIM:ECO), the offshore Atlantic Margins explorer dual-listed on AIM and the TSX Venture Exchange, has set out a mid-year operational update pointing to several near-term completions that it expects to drive a concentrated burst of newsflow in the months ahead.
The most advanced transaction is the farm-down of Namibian licences PEL97, PEL99 and PEL100 to BP, announced in April, which is expected to close in the third quarter and will deliver a US$2.7 million cash payment to Eco on completion.
In Guyana, Eco and strategic partner Navitas Petroleum are in advanced production-sharing agreement negotiations with the government over a new licence covering the Orinduik Block, which contains the Jethro and Joe oil discoveries, with negotiations also targeted for completion in the third quarter; Eco's 20% working interest will be carried up to US$11 million net.
In the Falkland Islands, where Eco holds an expected net attributable interest of 490 million barrels of oil across the PL001 licence, the company is awaiting a five-year licence extension and operatorship approval from the Falkland Islands Government before drilling evaluation work can progress.
In South Africa, a drilling-permit decision for Block 3B/4B is pending from the Department of Forestry, Fisheries and the Environment, while Navitas' farm-in to Block 1 CBK is progressing through regulatory closure, at which point Eco will receive a US$4 million cash payment.
"We are excited about the coming months and the number of additional corporate, operational and financial catalysts that lie ahead," said Gil Holzman, President and Chief Executive Officer.
