25% return generated and repayment of €1.8 million to Eco

TORONTO, ON / ACCESSWIRE / February 24, 2022 /Eco (Atlantic) Oil & Gas Ltd. (AIM:ECO), (TSXV:EOG), the oil and gas exploration company focused on the offshore Atlantic Margins, is pleased to announce the successful sale of the Kozani project in Greece by Solear Ltd. ("Solear") for c.€1.8m (c.$2 million) to Nepcoe Capital Partners Ltd ("Nepcoe"), in partnership with PowerChina New Energy Power Co., Ltd. ("PowerChina"), a Chinese state owned company active in civil engineering construction and the renewable energy infrastructure industry. This transaction enables the re-payment of this consideration to Eco Atlantic pursuant to the shareholder loan advanced by Eco to Solear in 2021.

As announced on 26 January 2021, Solear acquired the 10.57 MW Kozani project in Greece for a consideration of c.€1.1m (plus additional €417K as a grid connection bond). The transaction was funded via a shareholder loan provided to Solear by Eco Atlantic.

Since the Kozani project was acquired, Solear has further developed the asset and brought it to a ready for construction stage, including necessary building permits and a connection agreement with HEDNO (the Greek grid operator).

On 28 January 2022, Solear entered into a Share Purchase Agreement with Nepcoe (in partnership with PowerChina as engineering partner) for the sale of the holding companies for the Kozani project for a total consideration of €1,793,680, which Eco will receive in cleared funds by the end of February 2022. The Disposal represents approximately a 25% margin on the initial acquisition price of the Kozani project and the repayment to Eco further strengthens the Company's balance sheet.

Nepcoe is a UK based renewables investment and asset management business focused on creating a platform for access to renewable energy opportunities that provides and generate predictable cash flows in combination with positive environmental and social impact. Nepcoe has a strategic memorandum of understanding with PowerChina to jointly identify, develop and construct up to 750MW renewable energy infrastructure in Europe.

Gil Holzman Co-Founder and CEO of Eco Atlantic commented:

"We are very pleased with this transaction and pleased that the first development we entered into, the Kozani project, has generated a 25% return for our shareholders in just a year. We want to congratulate Nepcoe and PowerChina on this successful deal and believe they have acquired an excellent project from Solear. We have an exciting and busy year ahead, targeting a drilling campaign in H2 2022, and we look forward to keeping the market appraised on developments in our core exploration activities in South Africa, Namibia and Guyana, over the coming months. In addition, we will continue to further build our corporation to offer additional exploration catalysts as and when we believe these opportunities will be value accretive to our stakeholders."

Stanley Goh, Managing Partner of Nepcoe commented:

"We would like to thank Eco for supporting us with this very smooth transaction process. Kozani represents a bankable entry for Nepcoe Capital and its engineering partner PowerChina in the Greek renewable energy market. I wish the Eco and Solear teams all the best in their future endeavours."

For more information, please visit www.ecooilandgas.com or contact the following:

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018 (as amended).

Notes to editors

About Eco Atlantic:

Eco Atlantic is a TSX-V and AIM-quoted Atlantic margin focused Oil & Gas Exploration Company with offshore license interests in Guyana, Namibia, and South Africa. Eco aims to deliver material value for its stakeholders through its role in the energy transition to explore for low carbon consuming oil and gas in stable emerging markets near to infrastructure.

Offshore Guyana in the proven Suriname-Guyana Basin, the Company holds a 15% Working Interest in the 1,800 km² Orinduik Block Operated by Tullow Oil, and also indirectly through a soon to be 7.35% shareholding in JHI Associates Inc. a private company which holds a 17.5% working interest in the 4,800km² Canje Block Operated by ExxonMobil. In Namibia, the Company holds Operatorship and 85% Working Interests in four offshore Petroleum Licences: PEL's: 97, 98, 99 and 100 totalling 28,593 km² in the Walvis Basin.

Offshore South Africa, Eco holds Operatorship and 50% working interest of Block 2B, and 20% Working Interest of Blocks 3B/4B and Nearshore 3B/4B, totalling some 21,603 km².

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

SOURCE: Eco (Atlantic) Oil and Gas Ltd.

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