Eco (Atlantic) Oil & Gas Ltd. is pleased to announce that the Parliament of the Republic of Ghana has ratified a petroleum agreement (the "Agreement") pursuant to which the Company may acquire a 50.51% interest in the Deepwater Cape Three Points West Block, located in the Tano Cape Three Points Basin, offshore (Ghana Block"), adjacent to Tullow Oil plc.'s (Tullow") significant producing Jubilee Oil Field. Eco (Atlantic) has been qualified as Operator of the Block. The Agreement is final and pending execution by the parties. The Agreement is conditional upon the execution of a Joint Operating Agreement for the Block, among other conditions.
Partners in the Block include Eco Atlantic, through its wholly owned subsidiary Eco Atlantic (Ghana) Ltd., which will hold 50.51%; A-Z Petroleum Products Ghana Limited ("A-Z"), which will hold 32.14%; the Ghana National Petroleum Company (GNPC") which will hold 13%, and GNPC Exploration and Production Company Limited, which will hold 4.35%. The contract area is approximately 944km² in water depth between 800m and 2,000m. The Block is adjacent to Tullow's Jubilee Oil Field, which is producing in excess of 100,000 barrels of oil per day. It also shares an eastern boundary with the former OCTPS Block, a northern boundary with the Eni Cape Three Points Block, and a western boundary with the Hess Deep Water Cape Three Points Block. The Agreement 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 EcoAtlantic commented: "The Three Points West block is a fantastic opportunity for Eco Atlantic to step into an active and oil producing region. The Block is adjacent to the Tullow - Kosmos License and only 15 kilometers southeast of the current Tullow discovery and production. The targets of interest on the Block are on trend with the over 20 other oil discoveries in the immediate area. The Block is already almost entirely covered with a recent 3D survey and this will allow us to move quickly through the reprocessing and interpretation process and on to drilling."
Gil Holzman, President and CEO of Eco Atlantic, commented: "We are very pleased with the ratification of the Agreement by the Parliament of the Republic of Ghana. The Block has been the focus of interest for many international E&P companies, and so we are thankful that the government accepted our application in this highly competitive environment. This represents an amazing opportunity for Eco Atlantic's West Africa offshore exploration efforts and expending strategic portfolio. While we remain very much focused on our Namibian highly prospective licenses, especially after recently bringing in Tullow as our new partner, together with our partners in Ghana, A-Z and GNPC Explorco, we are aiming to add significant value to our portfolio and for our shareholders."
Source: Eco Atlantic