Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Petro Matad
Petro Matad has provided the following operational update on the Heron-1 oil discovery well and anticipated oil production start-up.
· Petro Matad has proposed that Heron-1 will be put onstream through temporary facilities so that production is not further delayed by slow moving bureaucracy.
· Mineral Resources and Petroleum Authority of Mongolia (MRPAM) has formally agreed to this proposal, with production start-up on Heron-1 now anticipated during October.
Heron-1 well pad – surface facilities
As previously reported, the application for the construction permit to install the long-term production facilities at Heron-1, which could only be initiated after land access had been approved in late May, had reached the final stage and the permit is with the provincial Governor for the final signature required. The Governor is new in-post, having been formally appointed in early September, and has told the Company that he needs time to review the application. In light of this, and with no indication of how long this review will take, Petro Matad has proposed, and industry regulator MRPAM has formally agreed, that Heron-1 will be put onstream through temporary facilities so that production is not further delayed by slow moving bureaucracy. The temporary facilities will be positioned on the well site to allow construction of the long-term facilities to go ahead in parallel with production operations once the construction permit has been obtained. The Company has given notice to its chosen contractor to install the temporary facilities and the work is anticipated to be completed within two to three weeks.
Oil sales
Following the high level meeting held at the Block XIX facilities some 20km north of the Heron-1 well, agreement in principle has been reached between Petro Matad and the Block XIX operator for the collection, metering, processing, storage, export and sale of Block XX production. The details are now being incorporated into a cooperation agreement which will then be presented to MRPAM for its approval. The parties have committed to try to have the agreement in place in time for production start-up on Heron-1 which is now anticipated to be during October.
Mike Buck, CEO of Petro Matad, said:
“The further hold up of the construction permit at the final step of an unnecessarily complex process is unwelcome, but we are very pleased that we have the support of MRPAM to use temporary facilities to expedite production. We do not anticipate any significant facility cost increase as a result of this solution and we will closely manage the construction activities when they start, to allow construction and production operations to continue simultaneously.
The meeting in Block XIX was very productive and the operator’s willingness to cooperate with the Company is much appreciated. We look forward to completing the drafting of the cooperation agreement and to securing MRPAM’s approval within the next few weeks.
Meanwhile, Heron 2 drilling operations are proceeding smoothly. With Gobi Bear-1 soon to spud, these are busy and exciting times for the Petro Matad team.”
Further updates will be provided as the 2024 work programme progresses.
Quite when Mike Buck is going to be able to report some news without a caveat that it hasn’t been approved is hard to see, I have to give him full marks for continuing to deliver at least something in such desperate local conditions. The good news that the authorities are facilitating the temporary production is a big plus and I wish him well. The shares have understandably underperformed this year but actually it might have been worse and with a following wind things might be looking up. But don’t expect that wind to be very strong, around here things are very slow or stop.
Commencement of Heron-1 Completion Operations
Petro Matad Limited ("Petro Matad" or "the Company"), the AIM quoted Mongolian oil company, is pleased to announce that completion operations on its Heron-1 oil discovery commenced on 22 July.
The contractor, PetroChina's well completion subsidiary DQE, has mobilised to site along with Petro Matad's team and is preparing to re-enter the well. The work planned involves a reservoir stimulation operation to enhance near wellbore drainage and the installation of the downhole production equipment. These operations are expected to be completed by mid-August.
When the well completion operations are finished, the wellsite will be prepared for the installation of surface production equipment and this work is expected to start during August. Once the surface equipment has been connected to the Heron-1 well and commissioned, the well will be ready for production start-up.
Meetings are scheduled before the end of July with the industry regulator, the Mineral Resources and Petroleum Authority of Mongolia (MRPAM), and with PetroChina's in-country management team to finalize details of the cooperation agreements required to allow Petro Matad to access PetroChina's oil processing facilities, transport and oil sales infrastructure.
Further updates will be provided as the 2024 work programme progresses.
Mike Buck, CEO of Petro Matad, said:
"This capital raise will allow Petro Matad to commence the development of the Heron oil discovery with the goal of generating sufficient production revenue to cover the operating costs of the company and to accumulate cash to allow for the drilling of future appraisal and development wells to increase proven reserves and production. The raise also includes funds to drill the low cost, high impact Gobi-Bear 1 exploration prospect at the southern end of the prolific Tosun Uul sub-basin. The prospect has estimated recoverable resource potential of circa 100 million barrels close to the Heron field.
In addition, with Petro Matad's SunSteppe Renewable Energy joint venture already having secured two development projects, a number of new opportunities are being worked up and ranked to prioritise the most attractive near term targets. The raise includes a small amount of extra development funding to bring the high-graded projects to internationally bankable, build ready status.
Petro Matad expects to sign two new Production Sharing Contracts with the government of Mongolia later in 2024 or early in 2025, and the company is keen to advance these projects in parallel with its existing business.
We are pleased to have been able to access the funding needed to kickstart development operations and to offer participation in the raise to existing shareholders through the Bookbuild platform."
The Placing is subject to the terms and conditions set out in the Appendix to this Announcement (which forms part of this Announcement). It is intended that the Retail Shares will be subscribed for on the basis of the terms and conditions of the Retail Offer, rather than pursuant to the terms and conditions of the Placing contained in the Appendix to this Announcement
LONDON, 29 May 2024: Petro Matad Limited, the AIM quoted Mongolian oil company provides the following operational update.
Key Company Updates
· The Company has received the remaining approvals necessary from Matad District to allow the 2024 operational programme to commence. Land use certificates have been issued for the three areas of operation selected by the Company.
· Discussions on timing of mobilisation to re-enter and complete the Heron 1 well for production are ongoing with service provider DQE.
· Petro Matad continues to push the central government to complete the certification process and confirm Block XX as State Special Purpose land to streamline the permitting process in future years. MRPAM has written to the Provincial authorities telling them to revise the coordinates of the area which overlaps with Petro Matad's Exploitation Licence.
· The Company's renewable energy joint venture is progressing its two high-graded projects and has a number of new opportunities including a potential export to China initiative.
Operational Update
Block XX land access and Heron 1 completion
Following the approval of land access from the Matad Citizens' Representatives Committee in late February, the Company has now secured the Matad Governor's follow up resolution and the land use agreement for the three areas chosen for operations in 2024. The land access granted is valid for five years, and this local level approval allows work to go ahead whilst the central government's process to certify the Block XX Exploitation Area as State Special Purpose Land is completed.
As part of the local level approval, with the support of the Land Agency and industry regulator the Mineral Resources and Petroleum Authority of Mongolia (MRPAM), Petro Matad paid compensation to the herders whose registered pastures will be impacted by the Block XX Exploitation Area.
With the local land use approval in place, Petro Matad is in discussion with service provider DQE to agree the timing of mobilisation of the completion crew to Heron 1. If possible, it is hoped to have the crew at site before Mongolia's parliamentary elections on 28th June, although campaigning tends to have a disruptive influence on logistics in the country. If not possible before, mobilisation shortly after the election will be targeted.
Discussions with PetroChina on oil processing, export and sale are waiting on feedback promised at a constructive meeting held in early May. Even if the oil offtake is not finalised, Petro Matad will prioritise getting the Heron 1 well ready to produce as soon as possible since we are aware that DQE expects to be busy with PetroChina and other operators from early Q3 2024.
Certification of Block XX as State Special Purpose Land
This process is moving slowly and the central government's focus on the parliamentary elections is a further hinderance. MRPAM has written to the Provincial authorities instructing them to revise the coordinates of their overlapping area which impinges on the Block XX Exploitation Area. Meanwhile, the Ministry for Economic Development has advised that its preparation for a submission to Cabinet to attempt to remove the obstacles to completing the certification process is progressing. The Company does not expect substantive progress until after the June elections but will continue to push for progress before the elections. With the District level approvals in hand, work can now be done, but special purpose certification represents the long-term solution and is still required to mitigate any delays to operational activities that may arise in future years.
Renewable Energy Projects
SunSteppe Renewable Energy (SRE)'s project to provide green hydrogen to Mongolia's major Oyu Tolgoi copper and gold mine is progressing. Wood Group is undertaking the detailed technical and commercial evaluation which is scheduled to be completed in Q3 2024 and multilateral and commercial banks are showing interest in this project. Meanwhile, on the Choir 50MW Battery Energy Storage System project, environmental studies have begun as part of the preparations to submit the application for the licence to construct.
A third project involving renewable electricity export from Mongolia to China is under discussion following the signing of an exclusive cooperation agreement with a major, state-owned Chinese utility. The agreement envisages a 1.5GW project.
SRE continues to pursue a number of other initiatives.
Mike Buck, CEO of Petro Matad, said:
"We are delighted to have finally secured land access on Block XX and are looking forward to getting back on to the Heron 1 site and completing the well for production. The special purpose certification process remains a frustration but at least now we can work in parallel.
SRE is making good progress on its two high-graded projects and the power export initiative offers exciting potential. It is very pleasing to see that numerous new opportunities are being generated by the team."
Further operational updates will be provided in due course.
Block 3B/4B Farm In - TotalEnergies & QatarEnergy
Eco (Atlantic) Oil & Gas Ltd. (AIM: ECO, TSX ? V: EOG), ("Eco") the oil and gas exploration company focused on the offshore Atlantic Margins in South Africa, Namibia, and Guyana, is pleased to announce it has signed a Farmout Agreement ("FOA") pursuant to which Azinam Limited ("Azinam"), its wholly owned subsidiary, will farm out a 13.75% Participating Interest in Block 3B/4B, offshore the Republic of South Africa as part of an aggregate 57% farm down transaction along with its Joint Venture ("JV") Partners Africa Oil SA Corp. ("Africa Oil") and Ricocure (Proprietary) Limited ("Ricocure") to TotalEnergies EP South Africa B.V., who will become Operator ("TotalEnergies") and QatarEnergy International E&P LLC ("QatarEnergy") (the "Transaction").
Upon completion of the Transaction, Eco will retain a 6.25% interest in Block 3B/4B.
Transactions Highlights:
Maximum transaction value, including carry, of up to US$32.1m to Eco, which includes payments due to Eco from Africa Oil and Ricocure under previously announced agreements as detailed below:
· As a result of the 6.25% farm out transaction with Africa Oil, announced on 11 July 2023, Eco will receive up to US$5.5m in two payments, US$4m on Completion of the Transaction, as defined below, and a further US$1.5m on spudding of the first exploration well, and US$1.2m due from Ricocure pursuant to the original Azinam - Ricocure 2019 farm out agreement due on Completion.
· TotalEnergies and QatarEnergy transaction will deliver, subject to achieving certain milestones, staged cash payments, comprising a total cash payment of US$11.92m of which US$1.92m is payable at Completion and the remaining balance in two equal successive payments, conditional upon receipt of customary regulatory approvals and the balance on spudding of a first exploration well.
· Eco will also receive a full carry of its 6.25% retained share of all JV costs, up to a cap, repayable to TotalEnergies and QatarEnergy from production, which is expected to be adequate to fund the Company's share of drilling for up to two wells on the licence.
Gil Holzman, Co-founder and Chief Executive Officer of Eco Atlantic, commented:
"We are delighted to have signed this agreement with TotalEnergies and QatarEnergy. Block 3B/4B sits in one of the most prolific and exciting areas in the world for offshore oil and gas exploration and development. The decision by two of the largest energy companies globally to farm into this licence is strengthened by their significant understanding of the Orange basin, having made the Venus large light oil discovery just recently north of the basin in Namibia.
"I would like to thank our partners at Africa Oil and Ricocure for their cooperation and jointly negotiating this farm out agreement. We now look forward to working closely with the government of South Africa and our new partners on the exploration licence to prepare first drilling."
Pursuant to the terms of the FOA, completion of the Transaction ("Completion") is subject to the satisfaction of customary conditions precedent including, but not limited to, the receipt of requisite regulatory approvals (Section 11) from the government of South Africa. On Completion, the Block 3B/4B interests of the JV partners will be as follows: TotalEnergies EP South Africa B.V. will become the Operator of the Block, holding a 33% Participating Interest; QatarEnergy International E&P LLC, will hold a 24% Participating Interest; Africa Oil SA Corp, a wholly owned subsidiary of Africa Oil Corp. will retain a 17% Participating Interest; Azinam Limited, a wholly owned subsidiary of Eco Atlantic, will retain a Participating Interest of 6.25%; and Ricocure (Proprietary) Limited, will retain a 19.75% Participating Interest.
**ENDS**
LONDON, 1 March 2024: Petro Matad Limited, the AIM quoted Mongolian oil company provides the following operational update.
Key Company Updates
· The Company has had its application for land access for 2024 operations approved by the Matad District Committee. A land use agreement is now being prepared which, once signed, will allow 2024 operations to go ahead commencing with completion operations on the Heron 1 well.
· The Company continues to push the Government to complete the regulatory formalities to confirm Block XX as State Special Purpose Land and understands and shares the frustration felt by shareholders. The continued refusal of the Provincial Governor to sign off on a Tripartite Agreement which has already been approved by the Ministry of Mining and Heavy Industry (MMHI) and the Central Land Agency has been raised by the Company with all relevant agencies and also at the highest levels in the Mongolian Government.
· Petro Matad is pleased to be the chosen contractor for the two areas for which it submitted applications in the 2022/23 Exploration Tender Round. The award of new acreage is now expected to be made after the 2024 Mongolian Parliamentary elections in the middle of this year.
Operational Update
Block XX local level land use approval: In light of the ongoing delays in the completion of the process by which the Company's Exploitation Area is being confirmed as State Special Purpose Land, the Company has engaged with the District authorities to secure local level approval of land usage. At a meeting of the Matad Citizens' Representatives Committee at the end of February the Company's application for land use in 2024 was approved. This approval covers all the areas in which the Company wishes to operate during the year. The approval means that the land use agreement can now be prepared and signed by the District authorities and by the Company and it will allow our planned operational activities to go ahead whilst the Special Purpose Certification process is completed. We are hopeful that the Provincial authorities, who are holding up the Special Purpose Certification of the Exploitation Area, will not disrupt in any way the District's approval process, but we remain vigilant.
The Company is now stepping up the planning for operations to complete the Heron 1 well for production once the contractors re-mobilise after the winter hiatus and as soon as they can make available their crews and equipment. Discussions with PetroChina for transport, processing, storage, export and sale of the Company's early production are also ongoing.
State Special Purpose Certification process status: A number of regulatory steps were required to be completed by the Government covering the granting and management of State Special Purpose Land. As reported previously, a key part of this is a Tripartite Agreement between the Central Land Agency, MMHI and the Governor of Dornod Province. The Governor is still withholding his signature, now on the basis of a partial overlap of the Block XX Exploitation Area with a provincial Protected Area as he claims it breaches the principle of no overlaps in areas for specific land use.
The Block XX PSC was signed in 2006 and the provincial Protected Area was not declared by the province until 2014, so it is the province that is in beach of the no overlap principle. Furthermore, the Land Law allows the central Government to take such land for State Special Purpose use, so this overlap should not be an obstruction to the certification process. Heron 1 and the other locations that the Company wishes to work on in 2024 are not within the overlapped area.
The Company has raised this issue formally with government agencies and ministers including: the Mineral Resources and Petroleum Authority of Mongolia, MMHI, Ministry of Economic Development, Central Land Agency, Deputy Prime Minister, Prime Minister and the President.
The Government needs to complete this process and Petro Matad is pushing hard for this to be done.
New acreage: As previously reported, the Company was selected as the preferred contractor for the two blocks for which it submitted applications. Despite setting an aggressive timetable for completion of the negotiations and award of the Production Sharing Contracts, the government is now not expected to make the awards until after the 2024 parliamentary elections which take place in the middle of this year. This new timeframe is not critical as the Company intends to focus all of its operational activity on Block XX in 2024.
Mike Buck, CEO of Petro Matad, said:
"We are very pleased that Matad Soum has approved our application for 2024 land access and we are following up as a matter of priority to finalise and sign the land use agreement. With that being said, we are extremely frustrated with the continued delay to the State Special Purpose Certification process and we continue to push to get this resolved.
The diligent efforts of our Government and Community Relations teams have facilitated this progress on land access and we are grateful to the Matad Citizens' Representatives Committee for its favourable hearing of our application and for its approval."
Petro Matad has announced that the Velociraptor-1 exploration well in the Taats Basin of Block V located in central Mongolia reached a total depth (TD) of 1500m and wireline logging has been completed but unfortunately all the reservoirs encountered were water bearing.
The well came in close to prognosis at all levels. The primary objective Late Jurassic/Early Cretaceous Undur Formation was encountered at 1170m and had good quality reservoir sands interbedded with shales over a c. 200m interval. In the secondary objective Early Cretaceous Shinehudag Formation, three thick sand units were drilled with average porosity of around 18%. Good quality electric wireline logs confirmed both objectives to be water wet.
The well will now be plugged and abandoned and the rig will be demobilised. Operations were carried out on time and as budgeted with the full support and cooperation of the local community. The well results will now be incorporated into the Company’s interpretation of Block V before any further operational activity is undertaken in the area.
Mike Buck, CEO of Petro Matad, said:
“The results of the Velociraptor 1 well are obviously disappointing but such high impact targets, drillable at modest well cost cannot be ignored when exploring frontier areas. The well provides a valuable new data point to help unlock the hydrocarbon potential of the southern Gobi. We will now incorporate the well results into our overall evaluation of the area. Meanwhile our operational focus shifts back to Block XX where the Heron development offers near term oil production and revenue generation and where low risk, near field exploration opportunities have already been identified which provide exciting upside potential.”
Further operational updates will be provided in due course.
This is indeed a big disappointment for Petro Matad and its shareholders for whom high expectations and a long wait have led to a dry hole at Velociraptor 1. But Mike Buck is right to say that this reasonably inexpensive well in a frontier acreage had to be drilled.
It is good that Block XX received the necessary approvals last week and it should be remembered that there are plenty of exciting things to go after in the Heron development. All is not lost…
Block XX Exploitation Licence
Petro Matad Limited (AIM:MATD), the AIM quoted Mongolian oil company is pleased to announce that the Cabinet of the Mongolian Government has approved the certification of the Block XX Exploitation Area, including the Heron oil discovery, as special purpose land.
Having received feedback from all other ministries, the Ministry of Construction and Urban Development, which is responsible for land issues, submitted the documentation to Cabinet and the proposed certification was discussed at the Cabinet's meeting on 5 July 2023. The Cabinet approved the certification and also instructed officials to conclude the follow up formalities required under the Land Law. The Company will now work with the central Land Agency and local authorities to complete the registration of the area and to sign the necessary contracts required by the regulations on the management of special purpose land. In parallel, we are already in discussion with service providers to determine a timeframe in which crews and equipment can be available for the completion for production of the Heron 1 well.
The certification of Block XX as special purpose land gives the Company the legal right of access to the entire area for the purpose of hydrocarbon exploration and exploitation.
Mike Buck, CEO of Petro Matad, said:
"We are very pleased that the Cabinet has approved the certification of Block XX as special purpose land. This important step has been a very long time coming but now provides a firm legal standing to the Company to execute the approved plan of development for Heron and to explore the exciting potential around it.
I would like to thank all our shareholders and in particular those that have been with Petro Matad for some years now, for their patience during this protracted certification process and I look forward to sharing further updates as we move into the next phase."
Further operational updates will be provided in due course.
Block XX Exploitation Licence
Petro Matad Limited (AIM:MATD), the AIM quoted Mongolian oil company is pleased to announce that the Cabinet of the Mongolian Government has approved the certification of the Block XX Exploitation Area, including the Heron oil discovery, as special purpose land.
Having received feedback from all other ministries, the Ministry of Construction and Urban Development, which is responsible for land issues, submitted the documentation to Cabinet and the proposed certification was discussed at the Cabinet's meeting on 5 July 2023. The Cabinet approved the certification and also instructed officials to conclude the follow up formalities required under the Land Law. The Company will now work with the central Land Agency and local authorities to complete the registration of the area and to sign the necessary contracts required by the regulations on the management of special purpose land. In parallel, we are already in discussion with service providers to determine a timeframe in which crews and equipment can be available for the completion for production of the Heron 1 well.
The certification of Block XX as special purpose land gives the Company the legal right of access to the entire area for the purpose of hydrocarbon exploration and exploitation.
Mike Buck, CEO of Petro Matad, said:
"We are very pleased that the Cabinet has approved the certification of Block XX as special purpose land. This important step has been a very long time coming but now provides a firm legal standing to the Company to execute the approved plan of development for Heron and to explore the exciting potential around it.
I would like to thank all our shareholders and in particular those that have been with Petro Matad for some years now, for their patience during this protracted certification process and I look forward to sharing further updates as we move into the next phase."
Further operational updates will be provided in due course.
https://www.lse.co.uk/events/
link to the webinar petro matad.
LONDON, 5 December 2022: Petro Matad Limited ("Petro Matad" or "the Company"), the AIM quoted Mongolian oil company, provides the following operational update.
Key Company Updates
· Progress being made to register the Block XX Exploitation Area as special purpose land
· Mongolia announces 14 blocks available in a new Exploration Tender. Petro Matad plans to participate and exploit its competitive advantage as the country's leading explorer
· Negotiations with DQE Drilling in their final stages for a multi-well development drilling contract
· More time secured on Block V Exploration PSC and plans for drilling Velociraptor 1 being progressed
Block XX Exploitation Licence
The Mongolian government's process to certify Petro Matad's Block XX Exploitation Licence area as special purpose land is progressing. Meetings held at the Matad district and Dornod provincial levels of citizens' committees resulted in voting that did not to support the central government's certification proposal. The Mineral Resources and Petroleum Authority of Mongolia ("MRPAM") has however written to the Ministry of Mining and Heavy Industry ("MMHI") recommending certification of the Block XX Exploitation Licence despite the local committees' views. The Company's focus is now to support MMHI in progressing the matter through to a cabinet resolution as quickly as possible. Given the delays, Petro Matad is unlikely to be in a position to operate on the Heron development until the spring of 2023, once its land access rights have been re-established.
Production Readiness
The Company continues to target having everything in place to get the Heron 1 well onstream as soon as the land issue is resolved by the government. Pumping, downhole completion and power generation equipment is now all in country. Production tanks and other related surface equipment have been sourced from Petro China, offering a cost effective solution to achieve rapid production start up. Discussions with Petro China on oil processing, export and sales have also begun with the facilitation and participation of MRPAM.
Negotiations with DQE Drilling ("DQE"), the main provider of drilling services in Mongolia, have continued and a contract for a multi-well development drilling programme is in the final stages of discussion. The contract envisages a reduction in drilling costs and deferral of some costs to allow a portion of the drilling expenditure to be settled from future production revenue. The contract still needs to be finalised and agreed with DQE and then with MRPAM, but the cost reductions and payment phasing could significantly improve project cash flows and overall asset value since the largest portion of the Heron development costs are drilling related.
Block V Exploration
On the Block V Exploration PSC area, local government approvals for land access have been secured. This area does not have the same history with the oil industry that Dornod Province has and as such, just as in previous years, thanks to its continued focus on positively engaging with local communities, Petro Matad has been able to secure all necessary permits to work on the land covering the highly prospective Raptor Trend and the Velociraptor prospect. The Company is now looking at its options and the availability of equipment to drill Velociraptor 1 on Block V in 2023.
A cost effective drilling solution for Velociraptor has been found, most equipment needed has been sourced and is already in country and MRPAM has given the necessary contractual approvals. The approval of the Company's application to secure a moratorium for 2022 on Block V has also been received from MMHI. This extends the Block V exploration period until July 2024 and ensures that there will be sufficient time after Velociraptor 1 is drilled to gather enough data and submit the necessary documentation to secure a Block V Exploitation Licence in the event of success.
2022/23 Exploration Licencing Round
MRPAM has announced an Exploration Licencing round covering 14 blocks in the prospective fairways of the southern half of the country. These areas share the same stratigraphy and geological history as proven prolific oil basins of northern China. With its extensive data base, technical expertise and operational experience Petro Matad has a significant competitive advantage as the country's leading explorer and intends to participate in the licencing round with a view to signing some new production sharing contracts.
Renewable Energy Opportunities in Mongolia
Petro Matad continues to explore opportunities in the renewables space following Board approval to do so in 2021. Work has continued this year to investigate the technical and commercial drivers of solar, wind and battery storage opportunities. A potential partner, highly experienced and well connected in the renewable energy sector in Mongolia, has been identified and negotiations for a collaborative association are at an advanced stage. The Company will update shareholders on the progress of this opportunity in due course.
Social impact 2022
In 2022, the Company undertook a significant exercise to re-evaluate its Environment, Social and Governance ("ESG") commitments. In the process, Petro Matad established a newly formulated ESG Statement published on its website and in the annual report that better describes and demonstrates its commitment to environment, social well-being and governance.
At the local level, Petro Matad continued its close engagement with the communities in which it operates. To support local development, Petro Matad worked with local governor's offices to identify projects in Block V and sponsored a local volleyball team to participate in a national tournament, funded the renovation of 4 local administrational buildings, participated in a programme of livestock restocking and the construction of a water well for irrigation of trees. The Company contributed to tree planting programmes in Block V. In Block XX, discussions have been held concerning the multi-year local development programme. Whilst this programme is yet to be initiated, pending resolution of the land issue, as a goodwill gesture, Petro Matad together with its subcontractor DQE, funded the restoration of the Matad Soum landfill project.
London South East Webinar, December 2022
The Company will participate in the London South East webinar on 6 December to provide shareholders with an update on Company activity and the progress made in 2022. For those interested in joining the event, the registration link is: https://us02web.zoom.us/webinar/register/9716691130893/WN_sIXgMNagT9-wPQnBAsGhOQ
Mike Buck, CEO of Petro Matad, said:
"It has been a frustrating year for Petro Matad and our shareholders given the lack of progress on the land access issue in Block XX. We are hopeful that we are now reaching a new phase in the process with central government recognising that it needs to bring this access issue to an end through direct action.
Meanwhile, we are pleased with our progress on negotiations with DQE drilling and with the cost reductions that can make a real difference to project cash flows and asset value. Similar positive progress has been made on the Block V Exploration PSC area and we are excited about the potential to drill a high impact exploration well on the Raptor Trend in 2023.
I would like to thank our shareholders for sticking with Petro Matad this year and look forward to sharing further updates."
- Ends -
Update on Gazania-1 well, offshore South Africa
Commencing detailed analysis and plans to drill at Block 3B/4B
Eco Atlantic (AIM: ECO, TSX- V: EOG), the oil and gas exploration company focused on the offshore Atlantic Margins, announces that the Gazania-1 well on Block 2B, offshore South Africa, which spudded on October 10, 2022, reached target depth of 2,360m but did not show evidence of commercial hydrocarbons. The well will now be plugged and abandoned as planned.
The well logging is currently on-going and the JV Partners will undertake a detailed analysis of the results, which will inform our future plans. The JV Partners submitted a Production Right Application to the Petroleum Agency of South Africa ("PASA") on November 15, 2022, for Block 2B, based on the existing oil discovery of AJ-1 and potential future operations. Therefore, the JV Partners have time to conduct further analysis and integration of the Gazania-1 well data to allow them to determine the next steps on the Block.
The Company, alongside its respective JV Partners, will now move on to executing our plans for more exploration wells, including a two-well campaign on Block 3B/4B offshore South Africa planned to begin in 2023, and at least one well into Cretaceous targets on the Orinduik Block offshore Guyana. As announced by the Operator of Block 3B/4B, a collaborative farm-out process, up to 55% gross WI, has been ongoing and we look forward to updating the market on this in due course.
Colin Kinley, Co-Founder and Chief Operating Officer of Eco Atlantic, commented:
"We very much appreciate the stakeholder and shareholder support on this well that was safely drilled with no environmental issues. Early challenges with weather and service logistics on this well cost us a bit of time to get started, however we are happy with the overall technical operation of the well.
Gases normally associated with light oil were encountered throughout the drilling of the Gazania-1 well. This, in our view, confirms the active hydrocarbon system, proven by the A-J1 discovery well in 1988, extends to the part of the basin where the Gazania-1 well is located. Further seismic interpretation will likely lead to the definition of viable areas for trapping downdip of Gazania-1 closer to the 1988 oil discovery A-J1.
"While the well results are obviously disappointing at this location, we remain optimistic for this basin and look forward to continuing our exploration efforts".
Gil Holzman, Co-Founder and Chief Executive Officer of Eco Atlantic, added:
"While it is naturally disappointing not having made a commercial discovery, the Gazania-1 well was only the first of four wells we have planned for the next 18-24 months across our wider portfolio. We now move on to executing our plans for more exploration wells; a two well campaign on Block 3B/4B offshore South Africa planned to begin in 2023, and at least one well into Cretaceous targets on the Orinduik Block offshore Guyana. A collaborative farm-out process on 3B/4B has been ongoing with the Operator and JV partners and we look forward to updating the market on this in due course.
"I want to thank our internal operations team and NRG Well Management for their excellent performance executing and operating the Gazania-1 well, the Government of South Africa and PASA for their professional support throughout, and all our JV Partners at Africa Energy, Panoro, and Crown Energy. We have established ourselves as a qualified and reliable Offshore Operator. This experience will be extremely useful for our future exploration campaigns, particularly upcoming on Block 3B/4B."
The JV partnership in respect of Block 2B comprises Eco Atlantic (50% WI and Operator), Africa Energy Corp (27.5% WI), Panoro 2B Limited, a subsidiary of Panoro Energy ASA (12.5% WI), and Crown Energy AB (10% WI).
**ENDS**
Interim results for the six months ended 30 June 2022 and Operational Update
LONDON, 22 September 2022: Petro Matad Limited, the AIM quoted Mongolian oil company, announces its unaudited interim results for the six months ended 30 June 2022 and provides an operational update.
Key Company Updates
· The Company has finalised the detailed Heron 1 completion plan with expert engineering input.
· Contract in place with DQE Drilling (DQE) and negotiations underway to substantially expand the size of the programme in order to accelerate development drilling and further reduce costs.
· Heron 1 surface facilities and power generation equipment is either at the border or ready to be shipped from China, subject to Covid-19 related lockdowns.
· Petro Matad continues to push government on the land access issue with the Company urging the Ministry of Mining and Heavy Industry to expedite certification.
Financial Summary 1H 2022
The Group posted a loss of USD 1.62 million for the 6-month period ended 30 June 2022, which compares to a loss of USD 1.02 million for the comparable period in 2021. The Company's cash balance at 30 June 2022 was USD 6.62 million (USD 3.10 million in cash and USD 3.52 million in Financial Assets), which compares to a cash balance of USD 0.40 million (USD 0.38 million in cash and USD 0.02 million in Financial Assets) on 30 June 2021.
As previously announced, a successful fundraise totalling USD 10.4 million gross proceeds was completed in August 2021 to develop and further appraise the Heron oil field with the goal of commencing production in the second half of 2022. During the first half of 2022, the Company has used part of the proceeds raised to place orders for essential equipment required to put the Heron 1 well into production. The remaining funds received from the fundraise have been invested in relatively safe high yielding term deposits waiting on the ramping up of work programme activities. Throughout, the Company has continued with aggressive cost control measures including maintaining a small but highly active workforce with the necessary operational capability.
Operational Summary 1H 2022
Progress on preparations for operations in 2022 was good through the first half of the year but the Company's ability to execute was impacted by China's continuing Covid-19 response and from issues arising from Mongolian land law.
Extremely stringent restrictions imposed by China during the global pandemic to control the spread of Covid-19 were extended into 2022 and have significantly impacted the oil sector in Mongolia where almost all of the oil field service providers are Chinese. Mongolia's oil export was stopped for most of the first half of 2022 due to the Chinese restrictions. Chinese rigs in Mongolia's major producing fields were on standby and international border crossings were closed on the Chinese side or severely restricted, complicating and delaying imports and exports. Restrictions began to ease in June and the Chinese contractors in Mongolia were able to gradually restart operations on the country's main producing fields in the middle of the year.
Petro Matad's long struggle with local and central government authorities to have its land access rights restored as per the Production Sharing Contract (PSC) and Petroleum Law continued. Contradictions in the Land Law have caused issues for all PSC operators in recent years to varying degrees due to land management regulations introduced in late 2017. The impact of these is particularly prevalent in the province where Mongolia's major oil fields and Petro Matad's Heron discovery are located. Multiple requests by the Company and other operators for land access permission have been rejected without explanation by the local authorities. Anticipating this situation at the local level, Petro Matad pushed for central government to take action to certify the Company's Block XX Exploitation Area as a Special Purpose Area, streamlining the approvals process, and to remedy the contradictions in the land law.
In late April the Cabinet of the Mongolian government gave instruction to the relevant Ministers to expedite matters reflecting the fact that Mongolia has a high-profile project underway to construct a domestic oil refinery that will need Heron production. Additionally, the government's post-Covid-19 economic recovery plan highlights the importance of the upstream hydrocarbon sector in achieving Mongolia's goal of greater energy independence. This high-level intervention from the Cabinet was very welcome as progress on the matter has been far too slow. The Company continues to push all governmental bodies involved to generate and maintain the necessary momentum.
During the first half of 2022 and despite the problems impacting the oil sector in-country and in China, Petro Matad pressed ahead with its preparations to be ready to commence field operations as soon as conditions allow. To this end, the company completed geodetic surveying over the Heron development area and prepared detailed construction plans as required by the regulations in place. The Company designed and selected surface production equipment including the Heron 1 beam pump and related equipment plus the necessary power generation package. The equipment orders were successfully tendered and awarded. The Company signed contracts for the downhole completion services for Heron 1 including fracking and the installation of the completion equipment. All environmental permits were approved and in place by mid-year to facilitate the commencement of operations once the land issue is resolved.
Operational Update
Since mid-year there has been further easing of the Covid-19 restrictions in China although some major cities have been put under lockdown when cases are reported. Daqing has been one such city which is home to the PetroChina subsidiary operating in Mongolia and to DQE, Mongolia's most active oil field drilling contractor. Despite the problems in China, DQE currently has 3 rigs in operation in Mongolia with another scheduled to start soon. Petro Matad has a valid contract with DQE for new wells on Heron with prices reduced compared to 2019. Negotiations are also underway to expand substantially the size of the drilling programme incorporating further price reductions and economies of scale. These discussions have taken much longer than DQE originally proposed due in part to DQE management changes but the negotiations are continuing despite the Daqing lockdown.
Whilst Petro Matad's field operations remain on hold pending progress on the land issue, the Heron 1 power generation equipment is at the border waiting to cross. The other equipment for Heron 1 that was manufactured in Daqing has been held up by the lockdown but there are indications that the lockdown will shortly be eased or lifted allowing this equipment to be shipped. PetroChina's Mongolian operating company has offered Petro Matad some storage tanks already in-country at very low cost and discussions are ongoing for other items. Meanwhile, the Company has finalised the detailed Heron 1 completion plan with expert engineering consultant input. Discussions regarding provision of operational services and oil export with PetroChina continue, complicated recently by the Daqing lockdown, but these are planned to resume fully as soon as the relevant PetroChina personal are able to return to Mongolia.
The land issue has yet to reach a resolution. The Company has submitted another application to the local authorities for land access whilst at the same time, in response to pressure from Petro Matad, the legal process for Special Purpose certification is underway at the relevant ministries. Amendments to the Land Law are due to be debated in the next session of the Mongolian parliament and although this represents the best opportunity for an all-encompassing long-term solution, Petro Matad is urging the Ministry of Mining and Heavy Industry, under the newly appointed Minister, to help expedite the special purpose certification for Block XX as a priority in order to allow the Company's in-field operations to commence as quickly as possible.
Mike Buck, CEO of Petro Matad, said:
"I fully appreciate that the lack of resolution on the land access issue will not be welcomed by shareholders. At this stage we have submitted an additional application to local authorities, are pushing for short and long-term solutions to speed up approval and continue to receive the support of the relevant ministries and the Cabinet of the Mongolian government to expedite the matter. We continue to work, day and night for a resolution.
In the first half of this year, we have made substantial progress on getting our production capability ready in order to ensure we can complete Heron 1 as soon as the land issue is resolved."
Further operational updates will be provided in due course.
Today update from ceo mike buck.
TSXV Approval for final Closing of the Azinam Acquisition
11 May 2022
Eco (Atlantic) Oil & Gas Ltd. (AIM: ECO, TSX - V: EOG), the oil and gas exploration company focused on the offshore Atlantic Margins, is pleased to announced, further to its announcement of 28 March 2022 regarding the acquisition by of Azinam Group Limited ("Azinam"), that it has now received clearance from the TSX Venture Exchange in respect of the Personal Information Forms of the directors of Azinam Group Holdings Limited ("Azinam Group Holdings"), the vendor of Azinam. Accordingly, the Company will now issue the remaining 17,874,174 common shares in the capital of Eco ("Common Shares") to Azinam Group Holdings (the "Second Tranche").
Further to the Company's announcement of 8 February 2022, in addition to the Second Tranche, Azinam Group Holdings have now also been issued 40,000,000 warrants over Common Shares, exercisable only in the case of a producible commercial discovery on Block 2B or Block 3B/4B, as follows: 20,000,000 warrants exercisable at a price of CAD$1.00 per Common Shares for a period of two years , and 20,000,000 warrants exercisable at a price of CAD$1.50 per Common Share for a period of three years (such exercise periods to be extended in the event a well is not drilled on Block 2B or Block 3B/4B until such time as a well is drilled on either block and a producible commercial discovery declared).
Following the issuance of the Second Tranche, Azinam Group Holdings will hold 40,170,474 Common Shares representing approximately 13.05 per cent of the Company's issued share capital as enlarged by the Second Tranche. The Vendor has entered into a lock-in agreement to restrict the sale of the consideration shares (being the first tranche, announced on 28 March 2022, and the Second Tranche) until the earlier of: the spudding of a well on Block 2B; or, 6 months following closing of the acquisition, being 28 March 2022 (the "Closing Date"), in respect of a third of the consideration shares, with two equal further tranches being released from the lock-in 12 and 18 months following the Closing Date.
It is noted that 8,034,094 of the Second Tranche shares issued to Azinam and 4,000,000 warrants (having an exercise price of CDN1.00 and an expiry date of 10 May 2024) have been placed in escrow in accordance with the Azinam share purchase agreement, with such securities to be released to the vendors on 31 July 2023 subject to there being no excess debt above US$1.5m within Azinam as confirmed by a final balance sheet as at the Closing Date (to be prepared by Eco within 75 days of the Closing Date) ("Excess Debt"). In the event that there is determined to be Excess Debt, such number of escrowed securities as is equal to the Excess Debt amount divided by US$0.44 will be returned to Eco's treasury account.
Admission of the Common Shares
Application has been made for admission of the Second Tranche, which will rank pari passu with existing Common Shares, to trading on AIM ("Admission"). It is expected that Admission will become effective and trading will commence at 8.00 a.m. on 16 May 2022.
The Second Tranche Common Shares are subject to a restrictive hold period of four months and one day in Canada, expiring on September 10, 2022 (the "Hold Period"), which will prevent them from being resold in Canada, through a Canadian exchange (including the TSX Venture Exchange), or otherwise in Canada or to a Canadian during the Hold Period without an exemption from the Canadian prospectus requirement.
Following Admission of the Second Tranche, the enlarged issued share capital of the Company will be 307,749,605 Common Shares. The above figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
"ICOA Fund...big things developing...best thing is small market cap...one you need to start paying attention to. If you're looking for a 'Blockchain' (sic) penny stock to invest in, $ICOA is definitely one of the top." @InsidrFinancial
— ICOA Inc (@icoa_inc) April 25, 2022
Watch here:https://t.co/hFOsp9hFi8 (6:19)
And we are still waiting for news.Waiting and waiting for the first oil to be produced.Will it happen in the 2nd quarter.have my doubts about that.But it has to happen soon!!!!!!!
good luck to everyone who has had the stock for many years like me!
Launch of Equity Fundraise of up to US$25 million
through an accelerated bookbuild process
Eco (Atlantic) Oil & Gas Ltd. (AIM: ECO, TSX-V:EOG) is pleased to announce its intention to raise aggregate gross proceeds of up to approximately US$25million through the issue of new Common Shares in the capital of the Company consisting of:
· a placing in the United Kingdom, Norway and certain other jurisdictions outside Canada, and a brokered private placement in Canada up to approximately US$21 million before expenses through the issue of new Common Shares to new and existing institutional investors (the "Placing Shares") at a price of £0.30 per Placing Share (or CAN$0.50 (the "Issue Price") (the "Placing")); and
· a proposed subscription by way of a private placement for new Common Shares (the "Subscription Shares") at the Issue Price by Africa Oil Corp to raise up to US$4 million (the "Subscription").
If all of the Placing Shares, Subscription Shares and Retail Offer Shares (as hereinafter defined) are issued, they will represent approximately 28 per cent. of the existing issued share capital of the Company (on a non-diluted basis) and 22 per cent. of the Company's issued share capital as enlarged by the Equity Fundraise (as defined below) (on a non-diluted basis).
In addition (and separately) to the Placing and the Subscription, non-Canadian retail investors will be given an opportunity to subscribe for new Common Shares (the "Retail Offer Shares") at the Issue Price (the "Retail Offer") on the PrimaryBid platform. A separate announcement will be made shortly regarding the Retail Offer and its terms. The Placing and Subscription are not conditional upon the Retail Offer. The Retail Offer will close on completion of the Bookbuild process in connection with the Placing. The capital raised via the Placing and Subscription and by the Retail Offer comprises the "Equity Fundraise".
It is intended that the Equity Fundraise will result in the Company raising total gross proceeds of up to approximately US$25 million (approximately GBP19.05 million, CAN$31.10 million ). The net proceeds of the Equity Fundraise are intended to be used primarily to fund Eco's share of the drilling of the Gazania-1 well on Block 2B offshore South Africa, estimated to be approximately US$23 million, to cover G&G expenses across the Group's portfolio and license fees in Namibia and on Block 3B/4B in South Africa as well as for general working capital purposes. It is expected that drilling of the Gazania 1 well will commence in September 2022 ahead of a relevant deadline under the licence for the Azinam Blocks. Should the drilling campaign result in a producible commercial discovery, the South African government and a HDSA (Historically Disadvantaged South Africans) investment entity would be entitled to exercise certain customary rights to equity participation in the production.
Capitalised terms used in this announcement have the meanings set out within it or in the Appendix to it.
Details of the Placing
In connection with the Placing, Berenberg, SpareBank 1 Markets and Echelon are acting as Joint Bookrunners.
The Placing will be conducted through an accelerated bookbuild process which will be launched immediately following the release of this Announcement.
The Placing will be conducted in accordance with the terms and conditions set out in the Appendix (which forms part of this Announcement).
The Joint Bookrunners will commence the Bookbuild immediately following the release of this Announcement. The number of Placing Shares will be determined at the end of the Bookbuild.
The timing of the closing of the book and allocations are to be determined by the Company in consultation with the Joint Bookrunners. The number of Placing Shares will be announced as soon as practicable after the close of the Bookbuild.
The Common Shares issued in connection with the Equity Fundraise (the "Equity Fundraise Shares") will, when issued, rank pari passu in all respects with the existing Common Shares, including, without limitation, the right to receive dividends and other distributions declared, made or paid after the date of issue.
General Information
Application will be made to the London Stock Exchange for admission of the Equity Fundraise Shares to trading on AIM. Application will be made to the TSX-V for the Equity Fundraise Shares to be admitted to trading on the TSX-V, with listing subject to the approval of the TSX-V and the Company satisfying all of the requirements of the TSX-V. It is expected that AIM Admission will take place on or before 8.00 a.m. (London time) on 11 April 2022 and that dealings in the Equity Fundraise Shares on AIM will commence at the same time.
The Equity Fundraise is conditional upon, inter alia, AIM Admission becoming effective and upon the Placing Agreement not being terminated in accordance with its terms. The Appendix to this Announcement sets out further information relating to the terms and conditions of the Placing.
The Placing Shares will be freely transferable outside of Canada, however these shares are subject to a restrictive hold period of four months and one day in Canada (beginning on the date of issuance) which will prevent the Placing Shares from being resold in Canada, through a Canadian exchange or otherwise in Canada or to a Canadian, during the restrictive period without an exemption from the Canadian prospectus requirement.
This Announcement (including its Appendix) should be read in its entirety. In particular, you should read and understand the information provided in the "Important Notices" section and the detailed terms and conditions described in the Appendix. Capitalised terms used in this Announcement shall have the meaning given to them in the Appendix.
Details of the Subscription
Africa Oil Corp, a substantial shareholder in the Company, intends to enter into a subscription agreement to subscribe for such number of Subscription Shares at the Issue Price as equates to an aggregate subscription amount of US$4 million, subject to Africa Oil Corp's resulting interest in Eco's share capital as enlarged by the Equity Fundraise remaining below 20% (with the number of Subscription Shares being reduced accordingly, if required, to ensure that this is the case).
As insiders of the Company are expected to participate in the Subscription, it is deemed by TSX-V regulations to be a "Related Party Transaction" pursuant to Canadian Securities Administrators Multilateral Instrument 61-101 "Protection of Minority Security Holders in Special Transactions" ("MI 61-101"), which applies to TSX-V companies. The Subscription is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as the fair market value of the securities distributed to, and the consideration received from, interested parties does not exceed 25% of the Company's market capitalisation. The Company did not file a material change report at least 21 days prior to the closing of the Subscription as participation of the insiders had not been confirmed at that time and the Company wished to close on an expedited basis for business reasons.
Eco Atlantic details high volume, high impact opportunities offshore Guyana, South Africa and Namibia
“Eco has the capacity to participate and provide strategic value accretion through the drill bit," said COO Colin Kinley
Eco (Atlantic) Oil & Gas Ltd (AIM:ECO, TSX-V:EOG) has unveiled a new third-party authored competent person's report (CPR) which details estimates that see some 16bn barrels of gross prospective resources across the explorer’s portfolio, which would be 8.24bn barrels net to the company.
Some 8.36bn of gross prospective resources (1.7bn barrels net) come from four targets – two offshore Guyana and two off South Africa – whilst the other 7.6bn barrels (6.49bn net) are deemed higher risk prospects and are offshore Namibia.
The CPR was produced by WSP USA Inc and it was commissioned following Eco’s deal to acquire Azinam Group, which added the South African projects and increased the company’s interests in its existing projects offshore Namibia. It does not include the additional projects in Guyana that will come through Eco’s proposed acquisition of JHI Associates.
“Our acquisitions and strategy to deliver mature drillable prospects in the near term are driven in part by the current heated energy market, the reduction in worldwide exploration, and the marked cycling we anticipate through energy transition in the coming years,” chief operating officer Colin Kinley said in a statement.
“Eco has the capacity to participate and provide strategic value accretion through the drill bit.
“Our planned well for Q3 this year on Block 2B in South Africa is being quickly followed by work on the potential to drill on Block 3B/4B in the Orange Basin, directly adjacent to the recent discoveries announced by TotalEnergies and Shell.
He added: “We are also confidently progressing towards drilling in Orinduik block offshore Guyana, subject to available funding, and look forward to confirming a drill target and timing with our partners in the coming months.”
“Assuming the acquisition of JHI completes as planned in the coming months, this acquisition will also provide us with the opportunity to participate in a number of targets on the Canje Block as prospects are matured by ExxonMobil and ourselves in the Guyana basin."
Strategic Acquisition of JHI and its Interest in Canje Block Offshore Guyana
Further consolidating Eco's position as an exploration business of scale
Eco (Atlantic) Oil & Gas Ltd. (AIM: ECO, TSX - V: EOG), the oil and gas exploration company focused on the offshore Atlantic Margins, announces today that it has signed a Commercially Binding Term Sheet to acquire 100% of JHI Associates Inc. ("JHI"), including JHI's 17.5% Working Interest ("WI") in the Canje Block offshore Guyana (the "Acquisition").
Highlights
· A proposed cashless acquisition, with a value of approximately US$52 million at the Company's current share price, which would make Eco the sole owner of JHI's cash balance and its 17.5% WI in the Canje Block
· The Canje Block, offshore Guyana, is directly adjacent to the prolific Stabroek Block where ExxonMobil has discovered in excess of 10 Billion Barrels of Oil
· Eco will acquire JHI's capital balance, which is expected to be a minimum of US$15 million upon completion of the Acquisition
· Consideration in the form of new common shares issued to JHI's shareholders based on an exchange ratio of 1.1994 new Eco common shares and convertible securities leading to JHI shareholders holding approximately 34% of Eco post Acquisition at current share count
· The Acquisition adds to Eco's strategic acreage position in Guyana and paves the way for further drilling activity on the Company's blocks over the coming years
· The Acquisition is currently expected to close in Q2 2022 subject, inter alia, to the signing of an Arrangement Agreement and satisfactory completion of due diligence by Eco and any requisite Government of Guyana, Canje Block partners, and stock exchange approvals
· On closing, JHI has the right to appoint two non-executive Directors to Eco's eight-member Board of the enlarged Group, bringing further exploration expertise to the Company
Information on the Acquisitio
JHI is a private company incorporated in Ontario and headquartered in Toronto, Canada. If and once completed the Acquisition provides the enlarged Eco Group with ownership of 17.5% PI in the Canje Block offshore Guyana. The Canje Block is Operated by Esso Exploration & Production Guyana Limited (35%), a subsidiary of ExxonMobil Corporation, with the remaining partners including TotalEnergies E&P Guyana B.V. (35%), JHI Associates (BVI) Inc. (17.5%) and Mid-Atlantic Oil & Gas Inc. (12.5%). On closing of the Acquisition, JHI is to have a minimum cash balance of $USD 15 million, acquired as part of the transaction with Eco. The Canje Block is approximately 4,800km2, located approximately 180 to 300 kilometers offshore Guyana in water depths ranging between 1700 and 3000 meters.
The Canje Block is a large and significant license which captures the lower slope and base of slope play fairways, channels and fans outboard of multiple ExxonMobil discoveries in the adjacent Stabroek Block which is immediately up-dip of Canje. Canje is covered with 6,100km2 of 3D seismic and holds over three dozen prospects in four proven plays in the Lower Tertiary and Upper Cretaceous confined channels, Lower Cretaceous Carbonate structures and, with recent drilling of Sapote-1 well and Stabroek discoveries, now offers the opportunity of yet deeper horizons.
Pursuant to the Term Sheet and subject, inter alia, to the signing of a binding Arrangement Agreement and completion of the Acquisition, Eco Atlantic will issue to JHI's shareholders, along with the holders of any JHI options and warrants, such number of new common shares in Eco that at the above-stated exchange ratio and current share count (post the issue of the Azinam Group Limited acquisition consideration shares) will provide JHI's shareholders with 34.1% of Eco's issued share capital as enlarged by such issue ("Enlarged Share Capital"), or approximately 127 million new common shares of Eco, providing for a cashless acquisition, with a value of approximately US$52 million at the Company's current share price, to become the sole owner of JHI's cash balance and its 17.5% PI in the Canje Block. The Term Sheet provides Eco with a 90-day exclusivity period and terminates, or may be terminated, upon the occurrence of certain events.
Completion of the Acquisition ("Completion") is subject, inter alia, to the signing of an Arrangement Agreement and satisfactory completion of due diligence by Eco and any requisite approvals from the Government of Guyana, the Canje Block partners, and the TSX Venture and AIM exchanges. In addition, certain shareholders of JHI will enter into a lock-up agreements to restrict the sale of the consideration shares.
As of 31 December 2021, JHI's audited financial statements provides that it had total gross assets of approximately US$30.7 million, of which approximately US$19.7 million is cash and cash equivalents and US$3.5 million is the book value of its interest in the Canje Block. These financial statements also provide that JHI had total liabilities to third parties of approximately US$500,000.
A further announcement will be issued on the execution of the binding Arrangement Agreement.
John Cullen, Founder and CEO of JHI commented:
"This transaction provides JHI's shareholders access to Eco's exciting portfolio of exploration opportunities in the emerging oil basins of Namibia and South Africa, and in Guyana with their Orinduik block, while maintaining their exposure to the Canje Block, where we have been working steadily with our partners to identify the next prospect to drill. It also represents the culmination of a tremendous amount of work from JHI's technical team which, over the last six years, saw two supermajors join the Canje Block, and three wells drilled providing valuable information towards unlocking the potential of the deeper water portions of the Guyana-Suriname Basin.
"JHI's team has come to work well with Eco's team since they became shareholders last year, and we know that they will continue to be good stewards of the Canje Block as they add it into their impressive and expanding exploration portfolio."
Gil Holzman, Co-Founder and CEO of Eco Atlantic commented:
"Being a shareholder of JHI since last year has given us a deep understanding of the Canje Block and its prospectivity. It has also given us the opportunity to get to know the great management team at JHI and their technical and business achievements to date. Because of these facts, we believe that there is considerable strategic rationale in acquiring JHI. Eco's ambition is to become the "go-to" small-cap exploration vehicle for investors seeking exposure to high-impact drilling programs in three of the world's most exciting hydrocarbon provinces in Guyana, Namibia and South Africa. This acquisition gets us another step closer to that goal and builds on the Azinam acquisition we announced earlier this year.
"This transaction adds to Eco's strategic acreage position in Guyana and ensures that there will be a number of drilling catalysts over the next couple of years on Eco's eight offshore blocks. In addition, the enlarged Group will benefit from JHI's current cash position, adding US$15million to Eco's balance sheet, further strengthening the Company's liquidity position.
Given Eco's strategic investor base and proven access to the public capital markets, the anticipated addition of JHI's interest in the Canje Block and its working capital, will further augment the enlarged Group cash position for its share of all near term exploration programs on its current blocks including: 2B in South Africa where drilling preparations for a late Q3 spud are underway and the Eco Orinduik Block offshore Guyana to follow, Block 3B/4B in Orange basin South Africa and elsewhere in the current and future portfolio of the enlarged entity.
"Ahead of our planned drilling campaign on Block 2B offshore South Africa in late Q3 2022, we are also looking to finalise drilling targets in Eco's Orinduik Block, offshore Guyana. Demonstrating that, as ever, the Eco team are head down and focused on delivering value for shareholders. We look forward to providing further corporate updates as appropriate."
Completion of Azinam Acquisition
Further to the Company's announcement of 8 February 2022, Eco (Atlantic) Oil & Gas Ltd. (AIM: ECO, TSX - V: EOG), the oil and gas exploration company focused on the offshore Atlantic Margins, is pleased to confirm that it and Azinam Group Holdings ("Azinam") have completed all conditions required to be completed in order to close Eco's acquisition of Azinam (the "Acquisition") save and accept for receipt of the final approval of the TSX Venture Exchange (the "Exchange") (the "Approval").
As disclosed in the Company's announcement of February 8, 2022, the Acquisition will result in the issuance to Azinam of 40,170,474 common shares (the "New Issue") in the capital of Eco ("Common Shares"), providing Azinam with 16.5% of Eco's share capital as enlarged by such issue ("Enlarged Share Capital"), providing for a cashless acquisition to become the sole owner of Azinam's entire African portfolio.
In addition to the New Issue, Azinam will be issued warrants to acquire additional Common Shares, exercisable only in the case of a producible commercial discovery on Block 2B or Block 3B/4B, as follows: 20,000,000 warrants exercisable at a price of CAD$1.00 per Common Shares during the twenty-four month period immediately following the date of receipt of the Approval, and 20,000,000 warrants exercisable at a price of CAD$1.50 per Common Share during the thirty-six month period immediately following the Approval, such exercise dates to be extended in the event a well is not drilled on Block 2B or Block 3B4B, until such time as a well is drilled on either block and a producible commercial discovery declared. At no time will Azinam be entitled to subscribe for and purchase such amount of Common Shares which, when aggregated with its already exiting ownership of Common Shares, would result in Azinam being the registered or beneficial holder of more than 19.9% of the then issued and outstanding Common Shares, without the prior written consent of the Exchange and Eco and in accordance with the policies of the Exchange. Eco has agreed that, for as long as Azinam holds at least a 12.5% interest in Eco's share capital, it shall be entitled to nominate one director for election to Eco's board of directors.
In connection with the Acquisition, a fee of 350,000 Common Shares and US$50,000 will be payable to an arms length third party in connection with their advisory services to Eco.
Eco will disseminate a further press release confirming final approval by the Exchange and the issue of the New shares.
Gil Holzman Co-Founder and CEO of Eco Atlantic commented:
"We are pleased to have completed this acquisition, subject to final Approval to issue the shares. we now own and operate a number of highly prospective licences in three of the most exciting regions for exploration in the world: Guyana, Namibia and South Africa. We continue to make strong progress towards the upcoming drilling of the Gazania-1 well, offshore South Africa, and following the signing of the rig contract earlier in the month we anticipate drilling to commence in late Q3 2022. We look forward to making further updates on our strategic acreage in due course."
**END
soon it will be the turn of the ceo of petro matad: mike buck who will talk
https://www.lse.co.uk/events/
Eco (Atlantic) Oil & Gas
Eco has announced today that it has signed a Memorandum of Understanding to acquire 100% of Azinam Group Limited, including Azinam’s entire offshore asset portfolio, in return for a 16.65% equity stake in the enlarged Group on completion of the Acquisition.
https://www.malcysblog.com/2022/01/oil-price-chariot-iog-eco-igas-and-finally/
/
good news about Significant discoveries at Fangtooth-1 and Lau Lau-1 wells add to previous recoverable resource estimate of approximately 10 billion barrels of oil equivalent
https://investors.hess.com/news-releases/news-release-details/hess-announces-two-discoveries-offshore-guyana
Operational Update and Notice of AGM
Eco (Atlantic) Oil & Gas Ltd. (AIM: ECO, TSX-V: EOG), the oil and gas exploration company with licences in the proven oil province of Guyana and the highly prospective basins of Namibia, provides an operational update on the Group's activities and announces notice of its annual and special meeting ("AGM").
Highlights
· JHI well drilled by ExxonMobil establishes oil presence at Sapote-1, Guyana
· Progress to define multi-million barrel targets on Orinduik, Guyana
· Eco elected as Operator on PEL 99, Blocks 2111B & 2211A, Namibia
· Eco negotiates new Joint Operating Agreements on all offshore Namibia licenses
· Eco advances development of solar business in Europe
Guyana
Eco received, on Saturday 30 October, a detailed update from JHI Associates Inc. that ExxonMobil has successfully and safely drilled the Sapote-1 well on the Canje Block, to a depth of 6,759 meters (22,172 ft), in 2,549 meters (8,362 ft) of water. The well recorded hydrocarbon shows while drilling, and in the logging sequence, in a deeper interval than anticipated, but had no shows in the upper primary objective horizon. With sidewall coring and wireline logging complete, ExxonMobil will now work to define the reservoir properties, including porosity and permeability, and the cored samples will be analysed for hydrocarbons.
As previously announced in June of this year, Eco acquired a 6.4% interest in JHI Associates Inc. ("JHI"), a private Canadian company, which holds a 17.5% working interest ("WI") in the Guyana Canje Block. JHI, with a current very strong cash balance, has already paid for its 17.5% of the Sapote-1 well from treasury. No costs are attributable to Eco.
On its primary asset in Guyana, the Orinduik Block, the JV partners; (Eco Atlantic: 15% WI; Tullow Guyana B.V. 60% WI (Operator); and TOQAP Guyana B.V. 25% WI), are currently advancing toward target selection on the Block. The partnership has used state-of-the-art processing technology to merge its seismic data sets and to incorporate regional well results into target selections. The teams are using conservative and proven sciences to define sweet light oil drilling targets, likely within the proven Cretaceous section. The partnership hopes to establish firm targets in the near term and advance towards drilling. Eco and the JV Partners have already delivered two substantial oil discoveries on the Orinduik Block on the northernmost quadrant of the Block and have worked diligently to define the parameters and identifiers related to this heavy oil field discovery.
Orinduik continues to offer significant upside. The eastern section of the Block is closer to the established Liza oil trend than any other Block. ExxonMobil will next drill in 2021 the Fangtooth-1 well just north and down dip of Orinduik on the Stabroek Block. This well is very close to Orinduik and will test some of the deeper sections. The partnership is focused on the careful selection of locations able to drill a number of stacked or multiple target sections with the opportunity to yield several hundred million barrels. The eastern border of the Orinduik Block is adjacent to and up dip from multiple ExxonMobil discoveries and down dip from the proven light oil discovered in the Kanuku Block, South of Orinduik and towards the continent.
Guyana continues to be one of the most prolific exploration regions in the world. Formal estimates, following ExxonMobil's latest discovery at Cataback-1, updated the current total discovered resources in the Guyana portion of the Guyana-Suriname Basin to over ten billion barrels of oil, discovered in the last five years. Work continues regionally with the definition of the trend. ExxonMobil is actively drilling with six drill ships, and multiple wildcats are planned in the basin for the upcoming year in the Basin by ExxonMobil and others. The Liza Destiny FPSO, pumping 120,000 bbls/day, is located a few kilometers from the Orinduik Block, and within the past week a second FPSO, the Liza Unity has arrived in Guyana and will be deployed east of Orinduik. This will pump an additional 220,000 bbls/day. An additional eight production facilities are being contemplated.
Colin Kinley, Co-Founder and COO of Eco Atlantic, commented:
"We are very focused on careful selection of the next target to drill on Orinduik. The process has taken longer than we would have liked with prolongation through reprocessing and Covid-19 constraints. However, each additional well drilled in the Basin, both commercially developed or drilled and abandoned, adds to our understanding of the area. We, and our partners, remain committed to good practice in the well location selection. We are fully funded for our share of the next well and are pushing the Operator, towards a committed location, defined drilling date and rig contract."
Namibia
Eco Atlantic has completed drafting the four new Joint Operating Agreements ("JOA's") for its new Petroleum Licenses offshore Namibia. We have received all paying partner approvals on the JOA's and they are out for review with the National Petroleum Corporation of Namibia ("NAMCOR"), and local partners. Namibia's Ministry of Mines and Energy has approved Eco Atlantic to be the Operator of all four blocks, which total some 7,065,484 acres (28,593 km2) in the Walvis Basin.
Eco negotiated the reissuance and establishment of a new 10-year life cycle for each of the four PEL's ("Petroleum Exploration Licenses") in December 2020 and Licenses were issued in February 2021. Eco also negotiated doubling the size of PEL 99 with the new Petroleum Agreement, in order to access the potential for new prospective targets in the deeper horizons to the west of the block.
The Company continues to monitor and assess opportunities, both technical and corporate, particularly with the upcoming drilling activity in the region. Two high impact deepwater wells are anticipated to spud in southern Namibia in Q4 2021: TotalEnergies Venus-1 well, using the Maersk Venturer, and Shell Namibia's Graff-1 well, using the Valaris DS-10.
Colin Kinley added:
"In the near term, we look forward to the drilling campaigns planned in Q4 at Venus-1 and Graff-1. TotalEnergies, Shell and ExxonMobil rank amongst the leading oil finders in the world, and their activity in the area is indicative of how the understanding of prospects in Namibia is gaining maturity. Eco is a long time player in Namibia and continues to work to define opportunities in increasing shareholder value through exploration and strategic corporate activities."
Solear Ltd.
Solear, a wholly owned subsidiary of Eco, is an independent renewable energy company focused on solar development projects in southern Europe.
In January 2021, Solear completed its first acquisition of a fully contracted, permitted, and build ready project in Greece, known as the Kozani Project. Throughout the year, Solear has continued to build at low cost, assessing projects, developing in-country relationships and seeking high turnover, early-stage opportunities.
Solear has signed in October 2021 an MOU with B&S Power Holdings Co. ("B&S Power"), an independent developer and operator of solar parks in Europe and South America, to jointly acquire and develop Ready to Build ("RTB") solar parks, funded exclusively by an international EPC firm. As part of the Joint Venture, B&S Power will inject their current development assets base into Solear. The companies are now evaluating a 104MW RTB park in Greece and additional transactions in Bulgaria, Hungary, and Spain.
Gil Holzman, President and CEO commented:
"We are very proud of our accomplishments in 2021. We have managed to grow and progress our assets portfolio in both Guyana and Namibia and, importantly, have also managed to maintain and strengthen the Company's financial position through strict cost controls. The Company has also negotiated a capital investment into treasury from Africa Oil Corp. and Charlestown Energy Partners from New York.
"The Company has remained active as always and we managed to create a flow of catalysts to our shareholders through both drilling campaigns and other corporate activities. With all the activities offshore Guyana and Namibia and with additional corporate initiatives we are busy with, the stream of catalysts is expected to continue throughout the end of 2021 and into 2022 and onwards.
"Eco has also seeded a renewable energy arm that is being managed and driven by a team of industry experts and through strategic partnerships.
"We are very encouraged by the latest well results in Sapote-1. The results, once defined, should warrant additional exploration wells to test the deeper sections where the Sapote oil was present. We remain confident that our past investment in JHI will generate additional value for our shareholders over the longer term in the exciting Canje Block. As a shareholder in JHI and given their strong financial situation, we have no obligation to commit any capital towards future drilling plans at Canje.
"Eco continues to be active in the market from a technical and corporate perspective. While our technical teams look to define targets and push for drilling in Orinduik, and further our exploration in Namibia with our new licenses, we are still very active corporately and look to increase shareholder value through corporate and portfolio additions as well as through the drill bit."
Notice of AGM
Eco Atlantic also announces that its AGM will be held at 10:00 a.m. (EST) on 29 December, 2021 at the offices of the Chief Financial Officer of the Company, at 559 Briar Hill Avenue, Toronto, Canada ON M5N 1N1.
A copy of the notice of AGM, proxy form and accompanying management information circular are available on the Company's website and on Sedar at www.sedar.com.
**ENDS**
2022 could be a turning point for eog!!!!I believe that!!
still no news!!!!!!!!
nice increase and volumes. soon drilling results.
a leak maybe??