Eco (Atlantic) Oil and Gas Ltd. (ECAOF)

[douginil]

Eco (Atlantic) Oil & Gas (ECO)

Thanks to Oilman Jim’s Letter

August 13, 2023

Eco (Atlantic) Oil & Gas (ECO) announced the acquisition from Tullow of an additional 60% interest in the Orinduik block, Guyana. ECO is paying US$700,000 cash upon transfer plus contingent consideration of US$4 million in the event of a commercial discovery, US$10 million upon the issuance of a production licence from the Government of Guyana and royalty payments on future production of 1.75% on the 60% interest entitlement revenue. Eco, which now has a 75% interest in the block and becomes operator says it intends to drive the exploration process and focus on its strategy to attract new partners to join the licence and proactively engage in drilling. The other current project is Block 3B/4B, offshore South Africa in which ECO now has a 20% stake. A new CPR released by the operator earlier this year confirmed that the block contains estimated P50 prospective resources of approximately four billion barrels of oil equivalent and an application has been made to drill one well and one contingent well in the north of the block. Like Orinduik, funding for the drilling again relies on a farm-out. Current market capitalisation is around £60 million. (Atlantic) Oil & Gas (ECO)