Eco Atlantic to acquire JHI Associates and Canje Block interest

Oil and gas exploration firm Eco Atlantic said on Monday that it has agreed to acquire JHI Associates and its 17.5% working interest in the Canje Block off the coast of Guyana.

Eco Atlantic stated the proposed cashless acquisition, valued at approximately $52.0m, would make it the sole owner of JHI's cash balance of no less than $15.0m and its stake in the Canje Block, directly adjacent to the Stabroek Block where ExxonMobil has discovered in excess of 10.0bn barrels of oil.

The AIM-listed firm added the acquisition will be satisfied via the issue of new common shares that will result in JHI shareholders holding approximately 34% of Eco post-acquisition.

Eco added that the acquisition was currently expected to close in the second quarter of 2022 subject to the signing of an arrangement agreement and satisfactory completion of due diligence.

As of 0900 GMT, Eco Atlantic shares were up 4.39% at 29.75p.