LONDON (Alliance News) - Eco (Atlantic) Oil & Gas Ltd said Wednesday it has completed its farm-out agreement for its Orinduik block in offshore Guyana.
The agreement is between Eco Atlantic and a subsidiary of Total Petroleum SA, itself part of France's Total SA, with Total transferring USD12.5 million to Eco on Tuesday for a 25% working interest in the block.
All necessary authorisations and approvals have been achieved and government transfer fees have also been paid, Eco Atlantic said.
Eco Atlantic has retained a 15% interest in Orinduik while Tullow Oil PLC, the operator the the block, holds the remaining 60% interest.
"With Total on board and being fully funded to drill, we look forward to moving ahead, finalizing drilling targets and approving the 2019 drilling budget for Orinduik," said Eco Atlantic Chief Operating Officer Colin Kinley.
"We have remained well ahead of our committed schedule, being partnered with ambitious and highly experienced partners, and we look forward to advancing through drilling - years in advance of our committed timing under the terms of the Orinduik licence," Kinley added.
Shares in Eco Atlantic were up 0.6% at 43.04 pence on Wednesday.
Tullow Oil (TLW)