Eco (Atlantic) Oil & Gas Ltd. ("Eco Atlantic" or the "Company") (TSX-V:EOG), is pleased to announce that the Ghana Petroleum Commission has granted a Permit to Operate as an Upstream Petroleum Exploration and Production Company to the Company’s wholly owned subsidiary, Eco Atlantic (Ghana) Limited enabling the Company to immediately commence operations. Eco Atlantic has thus completed the previously announced acquisition of an interest in the Deepwater Cape Three Points West Block, located in the Tano Cape Three Points Basin, offshore Ghana (the “Block”) and commences operations. The Company is the majority interest holder of the Block and has been designated the Operator.
The Company further announces that it is to acquire approximately 1,000kms2 of 3D seismic Data for the Block and expects to begin preprocessing and reprocessing immediately to generate interpretations in early 2016. Further, Eco Atlantic announces that is has confirmed the Work Program and Budget on behalf of its partners with the GNPC and the Ghana Petroleum Commission under the Petroleum Agreement (“PA”), and has submitted fees and necessary annual payments to meet all of the obligations on the Block.
The Company holds a 50.51% interest in the Block, A-Z Petroleum Products Ghana Limited holds a 27.79% interest in the Block, the Ghana National Petroleum Company holds a 13% interest in the Block, and GNPC Exploration and Production Company Limited holds and PetroGulf each hold a 4.35% interest in the Block. The exploration activity on the Block will be performed in the framework of the joint operating agreement which was signed by the partners on March 24th, 2015, under which Eco Atlantic has been designated the Operator.
The Block is approximately 944km² in water depth between 800m and 2,000m adjacent to Tullow Oil plc.’s (“Tullow”) Jubilee Oil Field, which is producing in excess of 100,000 barrels of oil per day. It also shares, a northern boundary with Eni S.p.A.’s block, a western boundary with Hess Corporation’s block, and southern boundary with Lukoil’s block, all of whom have had recent discoveries.
The PA provides for a term of a total of 25 years, subject to the discovery of oil within the first seven years.
Colin Kinley, Chief Operating Officer of Eco Atlantic commented: “The Deep Water Cape Three Points West block is a premium asset in the Eco Atlantic portfolio. After our kickoff meetings with the Ghana Petroleum Commission and our partners at GNPC, we are pleased to step into this next phase of detailed evaluation of the Block. We have carefully selected this block on the West African Transform Margin and managed to entrench ourselves in a region where we are in very close proximity to a number major oil and gas discoveries. The Company believes that Ghana provides a sound fiscal environment and foundation for this rapidly developing oil play and we and our partners are committed to the careful interpretation, target selection and drilling on this block”.