Eco Atlantic Acquires a 6.4% Stake in JHI Associates
Toronto-based Eco (Atlantic) Oil & Gas Ltd. has entered into an agreement with Guyana-focused E&P company JHI Associates Inc. to acquire 5,000,000 common shares of JHI, representing a 6.4% stake in the company, for an aggregate purchase consideration of US$10 million. JHI currently holds a 17.5% carried interest in the Canje block located offshore Guyana.
Under the terms of the deal, Eco Atlantic has subscribed for 5,000,000 common shares of JHI at a price of US$2 per share, for an aggregate purchase price of US$10 million. Prior to the transaction, Eco Atlantic had no ownership or control over any shares of JHI.
Additionally, Eco Atlantic has been given a warrant to subscribe for a further approximately 9.15 million shares in JHI at an exercise price of US$2 per share, for a period of 18 months. If the warrant is exercised in full, Eco Atlantic will hold a 10% interest in JHI on a fully diluted basis. Eco Atlantic has also appointed Keith Hill, a non-executive director of the company, to the JHI Board of Directors.
Toronto-based JHI is focused on frontier exploration in the Guyana-Suriname basin, and currently holds a 17.5% carried interest in the Canje block, offshore Guyana. The block covers an area of 4,800 sq. km and is located adjacent to and in the same geologic basin as the prolific Stabroek block, which has delivered twelve substantial oil discoveries since 2015 and is operated by Exxon Mobil Corp. The Canje block is operated by Exxon with a 35% interest. French energy major TOTAL SA also holds a 35% interest in the block, with Mid-Atlantic Oil & Gas Inc. holding the remaining 12.5%. The current work commitments on the block include drilling of the Jabillo-1 well (results expected in July 2021), and the Sapote-1 well in Q3-2021.
“We are very pleased to have Eco team up with the two most knowledgeable operating partners in the basin and believe the Canje Block has the potential to hold resources comparable to the world class Stabroek Block which is undoubtedly the most successful exploration campaign in recent history. Combining this with the holdings in the Orinduik Block, Eco is well positioned to be part of the historic oil development in Offshore Guyana,” commented Keith Hill, Non-Executive Director of Eco Atlantic.
Dual-listed on the TSX-V and the AIM Market of LSE, Eco Atlantic holds a portfolio of offshore exploration interests in Namibia and Guyana.