Eco (Atlantic) Oil & Gas has reached an agreement to acquire the remaining 6% interest in its Guyana-based subsidiary in an attempt to simplify its corporate structure.

Through the proposed acquisition, Eco Guyana is set to become a wholly owned subsidiary of Eco (Atlantic).

Eco Guyana owns a working interest in the Orinduik block, offshore Guyana, in partnership with project operator Tullow Oil on 40:60 basis.

Under the agreement, Eco (Atlantic) will offer $200,000 along with the issuance of a total of 1,700,384 common shares to the minority shareholders of Eco Guyana in exchange for the acquisition of the 6% interest.

Eco (Atlantic) Oil & Gas president and CEO Gil Holzman said: “The successful purchase of the remaining 6% minority shares in Eco Guyana simplifies and strengthens our corporate structure and provides additional flexibility for us to manage our Guyana assets as we enter a year in which we are expecting significant activity on our blocks, as well as potential growth in the region.”

“It provides additional flexibility for us to manage our Guyana assets as we enter a year when we are expecting significant activity on our blocks.”

Completion of the transaction is subject to certain conditions, including TSX regulatory approval and admission of the common shares to trading on AIM.

Last month, the project partners decided to enter the second phase of the initial period under the petroleum agreement and prospecting licence.

The partners completed work commitment of the acquisition of at least a minimum of 1,000km² of 3D seismic on the block under phase two.

In September last year, the parties completed a 2,550km² survey during phase one.

Furthermore, Total reached a deal with Eco to secure an option to acquire a 25% working interest in the Orinduik block from Eco Guyana.