Eco Atlantic Boosts Stake in Exxon Partner Offshore Guyana

(Proactive Investors, 19.Jan.2022) — Eco (Atlantic) Oil & Gas Ltd (AIM:ECO, TSX-V:EOG) increased its interest in JHI Associates Inc, a junior explorer offshore Guyana, which is partnered with Exxon in the Canje Block.

AIM-quoted Eco bought 800,000 shares, worth around £312,000, in JHI by exchanging 1.2mln new Eco shares. It takes Eco’s shareholding in JHI to 5.8mln shares, representing a 7.35% stake in the explorer.

It comes as Exxon and its partners work to define additional drilling prospects in the cretaceous and deeper plays, after their Sapote-1 well recorded hydrocarbon shows last year and Exxon’s recent nearby Fangtooth-1 discovery, on the prolific adjacent Stabroek Block.

Stabroek, as many Eco shareholders will already understand, is the stellar oil block in the region.

It flanks Eco’s own Orinduik block and is host to the vast majority of Exxon’s multi-billion barrel oil discoveries offshore Guyana. The large-scale Liza field development is located within Stabroek and is rapidly ramping up to a new production peak of 220,000 barrels of oil per day in the coming months.

“We are committed to creating material value for our shareholders through a multi catalyst, high impact, exploration portfolio,” said Eco chief executive Gil Holzman.  

“As such, we are pleased to increase our exposure in the Canje Block by building our equity holding in JHI.  This also marks another step in the broader consolidation amongst smaller exploration players, in which we want to lead.

“Following the work undertaken on Canje in 2021, which ExxonMobil and partners in the block continue to review, and after the recent highly positive drilling results on the nearby Stabroek block, we believe this to be another exciting opportunity in our portfolio.”