Fladgate advises Eco on CAD$14m subscription by Africa Oil Corp

Our team: Nigel Gordon, Orit Rioumine Gold, Grant Gordon

Fladgate LLP has advised AIM and TSX-V listed Eco (Atlantic) Oil & Gas Limited on the English law elements of an agreement with Africa Oil Corp (AOC), whereby AOC has subscribed for shares in Eco representing 19.77% of the enlarged share capital at a 28% premium to the market price as well as entering into a Strategic Alliance Agreement to identify new projects to add to Eco’s portfolio.

Eco has raised CAD$14m (£8.46m) by way of a subscription, the net proceeds of which will be used to actively identify, negotiate and contract new oil and gas exploration assets and conduct the initial work programmes.

Africa Oil Corp is a Canadian oil and gas company with assets in Kenya and Ethiopia. The company is listed on the Toronto Stock Exchange and on Nasdaq Stockholm.

Gil Holzman, President and CEO of Eco commented: “We are delighted to have entered into these agreements with AOC.  AOC are a like-minded company with a similar philosophy. They are, like Eco, leaders in and focused on frontier regions with a view to acquiring and developing world class assets. They have a broad and highly experienced technical team as well as significant financial muscle to deliver their programmes and strategy.  Also the fact that AOC has chosen Eco as a strategic investment is a powerful further endorsement of Eco’s strategy as well as a testament to the Company’s future potential and the quality of our portfolio.”

The Fladgate team was led by capital markets partners Grant Gordon and Nigel Gordon, assisted by associate Orit Rioumine Gold and trainee solicitor Chris Wilkinson.

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