TORONTO, Canada – Eco (Atlantic) Oil & Gas Ltd (TSX-V:EOG) (NSX:EOG) reports that the Parliament of the Republic of Ghana has ratified a petroleum 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, adjacent to Tullow Oil plc’s 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 Ltd, which will hold 32.14%; the Ghana National Petroleum Co. (GNPC), which will hold 13%; and GNPC Exploration and Production Co. Ltd, which will hold 4.35%.
The contract area is 944 sq km (364 sq mi) in water depths between 800 m (2,625 ft) and 2,000 m (6,562 ft). The block is adjacent to Tullow's Jubilee oil field, which is producing in excess of 100,000 b/d. 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.