Eco Oil and Gas acquires JHI Associates

Eco Atlantic has received final court approval to proceed with the acquisition of JHI Associates Inc., advancing its strategic expansion in offshore oil exploration territories. This development comes as Eco Atlantic seeks to bolster its presence in the offshore Falkland Islands and Guyana, regions noted for their untapped oil potential.

The transaction, approved by the Ontario Superior Court of Justice on May 15, follows unanimous approval by JHI’s shareholders earlier this month. The deal will see Eco Atlantic acquiring all outstanding shares of JHI, thereby securing a 35% interest in the PL001 license offshore the Falklands. Navitas Petroleum will maintain the remaining 65% interest and operatorship through a subsidiary. As part of the acquisition agreement, Eco is set to issue nearly 96.3 million new common shares to JHI shareholders.

One of the primary attractions for Eco Atlantic in this acquisition is the potential to strengthen its foothold in the resource-rich offshore Guyana, through JHI’s 17.5% working interest in the Canje Block. However, this aspect of the transaction is contingent on government approvals and ongoing discussions. The deal also hinges on securing a five-year extension for the PL001 license, along with necessary regulatory nods from the TSX Venture Exchange and the AIM market.

The acquisition comes at a time when interest is growing in new exploration frontiers like the Falklands and Guyana, with regional players looking to capitalize on these underexplored basins. Eco Atlantic’s move positions it for potential gains in these areas, adding heft to its Atlantic Margin portfolio. This push aligns with the broader industry trend of seeking new high-potential reserves as traditional sites mature.

Looking ahead, Eco Atlantic will focus on resolving the remaining regulatory and operational hurdles necessary to finalize the acquisition. The company has expressed its commitment to advancing exploration activities alongside Navitas in the Falkland Islands, while continuing its dialogue with Guyanese authorities to maximize its interests in the Canje and Orinduik Blocks. These steps will be crucial to realizing the strategic benefits anticipated from the JHI acquisition.