Page 13 - LatAmOil Week 03 2022

LatAmOil NEWS IN BRIEF LatAmOil

INVESTMENT
Eco (Atlantic) Oil and Gas

announces further share

purchase in JHI

Eco (Atlantic) Oil & Gas, the oil and gas explo-
ration company focused on the offshore Atlantic
Margins, is pleased to announce that it has pur-
chased an additional 800,000 common shares
in JHI Associates Inc. (JHI) in return for 1.2mn
new common shares in Eco. The purchase of the
800,000 common shares in JHI is expected to be
completed on January 21, 2022, increasing the
total number of shares currently held by Eco in
JHI to 5.8mn shares.
As announced on June 28, 2021, Eco acquired Common Shares. The above figure may be used American Depositary Receipts (ADRs), each
5mn common shares, representing a 6.4% inter- by shareholders as the denominator for the ADR representing two (2) Shares.
est in JHI, a private Canadian company, which calculations by which they will determine if In addition, the Company informs that the
holds a 17.5% working interest in the Guyana they are required to notify their interest in, or a Notice to the Market and the Preliminary Pro-
Canje Block. The Operator of the Canje block, change to their interest in, the share capital of the spectus of the Offering were published on this
ExxonMobil, and block partners are working to Company. date. The application for registration of the
technically define additional drilling prospects Gil Holzman, Co-Founder and CEO of Eco Offering is currently under analysis by CVM,
in the Cretaceous and deeper in the Santonian, Atlantic, commented: ”We are committed to and the Offering is subject to its prior approval.
where the Sapote-1 well recorded hydrocarbon creating material value for our shareholders The total number of Shares to be offered by
shows while drilling in 2021 and following the through a multi catalyst, high impact, explora- Petrobras under the Offering will be 75,704,061
January 2022 Santonian Fangtooth-1 discovery tion portfolio. As such, we are pleased to increase class A preferred shares of Braskem.
on the prolific Stabroek Block offshore Guyana. our exposure in the Canje Block by building our Petrobras, January 14 2022
Following the above purchase, Eco will hold equity holding in JHI. This also marks another
a total of 5.8mn common shares in JHI, repre- step in the broader consolidation amongst
senting approximately 7.35% of the issued com- smaller exploration players, in which we want to PERFORMANCE
mon shares in JHI. Eco also retains a warrant to lead. Following the work undertaken on Canje
subscribe for a further 9,155,471 new common in 2021, which ExxonMobil and partners in the Gran Tierra Energy issues
shares in JHI at an exercise price of $2.0 per share block continue to review, and after the recent
for a period of 18 months. If the JHI Warrant is highly positive drilling results on the nearby new corporate update
exercised in full, Eco will hold an interest, ceteris Stabroek block, we believe this to be another
paribus, of 11.4% in JHI on a fully diluted basis. exciting opportunity in our portfolio.” Gran Tierra Energy is pleased to announce a
This investment is consistent with Eco’s Eco (Atlantic) Oil & Gas, January 19 2022 corporate update.
strategy to create shareholder value through Significant Debt Reduction: Gran Tierra’s
advanced exploration programs on the off- Petrobras reports on credit facility has been reduced to a remaining
shore Atlantic margins for advantaged barrels as balance of $67.5mn as of December 31, 2021,
developing nations bridge the essential reserve sale of stake in Braskem down $122.5mn or 64% from a balance of
requirements through the stages of the energy $190mn as of December 31, 2020. With forecast
transition. chemical company 2022 free cash flow and recovery of tax receiv-
Further details regarding the JHI Investment: ables, Gran Tierra expects to fully pay off the
As at December 31, 2020, JHI had net assets of Petrobras, following up on the release disclosed remaining balance of its credit facility in the first
approximately $46.3mn and recorded a net loss on December 16, 2021, informs its sharehold- half of 2022.
of approximately $8.28mn. Based on the closing ers and the market in general that it has applied Key Upcoming 2022 Catalysts: At a $70 per
share price of Eco on January 18, 2022 the Con- to register with the Brazilian Securities and barrel Brent price, Gran Tierra’s 2022 capital pro-
sideration Shares are valued at approximately Exchange Commission (CVM), on January gramme of $220-240mn is expected to generate
GBP312,000. 14, 2022, the request for registration of a public 2022 cash flow of $270-290mn and EBITDA of
Application has been made for admission of offering for secondary distribution of class “A” $360-380mn. At an $80 per barrel Brent price,
the Consideration Shares, which will rank pari preferred shares issued by Braskem and held by the Company forecasts 2022 cash flow of $330-
passu with existing Common Shares, to trad- Petrobras and NSP Investimentos SA Em Recu- 350mn and EBITDA of $440-460mn.
ing on AIM. It is expected that Admission will peração Judicial, pursuant to article 6th-A of The Company’s development programme
become effective and trading will commence at CVM Instruction n. 400, of December 29, 2003, continues to focus on asset optimisation, main-
8:00 a.m. on January 24, 2022. as amended, to be simultaneously distributed (i) taining a low operating cost structure and
Following Admission, the enlarged issued in Brazil, and (ii) abroad, in the form of Amer- increasing oil recovery factors across its exten-
share capital of the Company will be 202,693,635 ican Depositary Shares (ADSs), represented by sive portfolio.

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