Eco (Atlantic) Oil & Gas has signed a Commercially Binding Term Sheet to acquire 100% of JHI Associates Inc., including JHI's 17.5% Working Interest ('WI') in the Canje Block offshore Guyana.
Highlights
A proposed cashless acquisition, with a value of approx. US$52 million at the Company's current share price, which would make Eco the sole owner of JHI's cash balance and its 17.5% WI in the Canje Block
The Canje Block, offshore Guyana, is directly adjacent to the prolific Stabroek Block where ExxonMobil has discovered in excess of 10 Billion Barrels of Oil
Eco will acquire JHI's capital balance, which is expected to be a minimum of US$15 million upon completion of the Acquisition
Consideration in the form of new common shares issued to JHI's shareholders based on an exchange ratio of 1.1994 new Eco common shares and convertible securities leading to JHI shareholders holding approx. 34% of Eco post Acquisition at current share count
The Acquisition adds to Eco's strategic acreage position in Guyana and paves the way for further drilling activity on the Company's blocks over the coming years
The Acquisition is currently expected to close in Q2 2022 subject, inter alia, to the signing of an Arrangement Agreement and satisfactory completion of due diligence by Eco and any requisite Government of Guyana, Canje Block partners, and stock exchange approvals
On closing, JHI has the right to appoint two non-executive Directors to Eco's eight-member Board of the enlarged Group, bringing further exploration expertise to the Company
Source: Eco
Join our mailing list here
