LONDON, UK: Eco (Atlantic) Oil & Gas Ltd. (AIM: ECO) announced its intention to raise aggregate gross proceeds of up to approximately $25million through the issue of new common shares.
The issue includes a placing in the United Kingdom, Norway and certain other jurisdictions outside Canada, and a brokered private placement in Canada up to approximately $21 million through the issue of new common shares to new and existing institutional investors at a price of £0.30 per share; and a proposed subscription by way of a private placement for new common shares at the issue price by Africa Oil Corp to raise up to $4 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.
Eco Atlantic is a TSX-V and AIM quoted Atlantic Margin focused oil & gas exploration company with offshore license interests in Guyana, Namibia, and South Africa. Eco aims to deliver material value for its stakeholders through its role in the energy transition to explore for low carbon intensity oil and gas in stable emerging markets close to infrastructure.