LatAmOil: Eco Atlantic to expand Guyana foothold via acquisition of JHI

UK-based Eco (Atlantic) Oil & Gas said on March 14 that it had expanded its foothold in Guyana’s offshore zone by striking an agreement on the acquisition of JHI Associates, a Canadian company that holds a 17.5% working interest in the Canje block.

In a statement, Eco Atlantic said it had signed a commercially binding term sheet to acquire 100% of JHI, including its cash and capital balances as well as its equity stake in Canje. It put the value of the transaction at about $52mn at current stock prices and noted that the proposed deal would involve a cashless stock issuance.

Additionally, the acquisition would “[bring] further exploration expertise” to Eco Atlantic,” the statement remarked. This expertise will prove helpful as work proceeds at Canje, which is located immediately down-dip from the prolific Stabroek block, where ExxonMobil has discovered more than 20 oilfields containing at least 10bn barrels of oil equivalent (boe) in recoverable reserves.