Eco (Atlantic) sells Solear’s Kozani Photovoltaic Park

LONDON, UK: Eco (Atlantic) Oil & Gas Ltd. (AIM: ECO) announced the successful sale of the Kozani project in Greece by Solear Ltd. for €1.8m ($2 million) to Nepcoe Capital Partners Ltd, in partnership with PowerChina New Energy Power Co. Ltd., a Chinese state owned company active in civil engineering construction and the renewable energy infrastructure industry.

This transaction enables the re-payment of this consideration to Eco Atlantic pursuant to the shareholder loan advanced by Eco to Solear in 2021.

As announced on 26 January 2021, Solear acquired the 10.57 MW Kozani project in Greece for a consideration of c.€1.1m (plus additional €417K as a grid connection bond). The transaction was funded via a shareholder loan provided to Solear by Eco Atlantic.

Since the Kozani project was acquired, Solear has further developed the asset and brought it to a ready for construction stage, including necessary building permits and a connection agreement with HEDNO (the Greek grid operator).

On 28 January 2022, Solear entered into a Share Purchase Agreement with Nepcoe (in partnership with PowerChina as engineering partner) for the sale of the holding companies for the Kozani project for a total consideration of €1,793,680, which Eco will receive in cleared funds by the end of February 2022. The Disposal represents approximately a 25% margin on the initial acquisition price of the Kozani project and the repayment to Eco further strengthens the Company’s balance sheet.

Nepcoe is a UK based renewables investment and asset management business focused on creating a platform for access to renewable energy opportunities that provides and generate predictable cash flows in combination with positive environmental and social impact. Nepcoe has a strategic memorandum of understanding with PowerChina to jointly identify, develop and construct up to 750MW renewable energy infrastructure in Europe.

Gil Holzman Co-Founder and CEO of Eco Atlantic commented: “We are very pleased with this transaction and pleased that the first development we entered into, the Kozani project, has generated a 25% return for our shareholders in just a year. We want to congratulate Nepcoe and PowerChina on this successful deal and believe they have acquired an excellent project from Solear. We have an exciting and busy year ahead, targeting a drilling campaign in H2 2022, and we look forward to keeping the market appraised on developments in our core exploration activities in South Africa, Namibia and Guyana, over the coming months. In addition, we will continue to further build our corporation to offer additional exploration catalysts as and when we believe these opportunities will be value accretive to our stakeholders.”

Stanley Goh, Managing Partner of Nepcoe commented: “We would like to thank Eco for supporting us with this very smooth transaction process. Kozani represents a bankable entry for Nepcoe Capital and its engineering partner PowerChina in the Greek renewable energy market. I wish the Eco and Solear teams all the best in their future endeavours.”

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