Minority interest acquired in Eco’s Guyana subsidiary

first_imgEco (Atlantic) Oil & Gas Ltd), an oil and gas exploration company with licenses in highly prospective regions in South America and Africa, has announced that Eco (Guyana) Oil and Gas (Barbados) Ltd, have acquired the remaining six per cent interest in its Guyana operations.Eco Guyana holds a 40 per cent working interest in the Orinduik Block, offshore Guyana, with the remaining 60 per cent held by Tullow Oil.The Acquisition is being affected via share purchase agreements entered into between Eco Barbados and the minority shareholders of Eco Guyana (the “Minority Shareholders”).The total consideration paid by the Group will be US$200,000 with US$100,000 payable upon closing, expected to be February 27, 2018, and US$100,000 payable 60 days thereafter, in addition to the issuance of a total of 1,700,384 common shares of the company. The Common Shares, which will be issued to the minority shareholders, represent approximately one per cent of the company’s share capital on a fully diluted basis.According to a release, the closing of the acquisition is conditional upon TSX regulatory approval and admission of the Common Shares to trading on AIM.“In connection with the Acquisition, each minority shareholder has agreed not to dispose of more than one-third of their common shares, issued to them at closing of the acquisition, for a period of 90 days. An additional one-third of the Common Shares issued to each Minority Shareholder may be disposed of from day 91 after closing, with the remaining Common Shares held by the minority shareholders being eligible to be disposed of after 181 days following issuance.”Application will be made for the admission to trading on AIM of the 1,700,384 common shares issued to the Minority Shareholders in conjunction with the acquisition of the Eco Guyana shares. Admission is expected to take place March 5.Following admission, it is understood that the issued share capital of the company will consist of 159,195,217 common shares.The Stabroek Block is 6.6 million acres. Esso Exploration and Production Guyana Limited (Exxon’s subsidiary) is the operator and hold a 45 per cent interest in the Stabroek Block. Hess Guyana Exploration Ltd. holds a 30 per cent interest, and CNOOC Nexen Petroleum Guyana Limited holds a 25 per cent interest.last_img read more