Eco Atlantic Oil and Gas Ltd (LON:ECO) has renamed its new renewable energy venture Solear Ltd as it seeks a possible spin-out later this year.
In January, it partnered with Nepcoe Capital Partners to launch a joint venture company to source, acquire and develop a pipeline of renewable power opportunities – initially named Eco Atlantic Renewables.
The new name better reflects the standalone nature of the business, the company said.
Solear, which is funded by a US$6mln loan from Eco, last month acquired its first asset which is a fully contracted, permitted, and build ready project in Greece. The first project, known as Kozani, is expected to be followed by opportunities in other southern European countries, including Spain, Italy, and Greece.
Eco noted that Solear is targeting a ‘financing event’ this year, which could come in the form of a private financing and/or stock market IPO.
"Our recent strategic investment into Solear Ltd. demonstrates our drive and determination to use our cash reserves wisely alongside high impact exploration drilling,” said chief executive Gil Holzman.
“We are very excited about both the near-term opportunities that Solear brings, as well as the long-term benefits that come with broadening our asset portfolio.
“Solear has a highly attractive pipeline of low cost, high yield solar PV projects, that have the potential to generate high IRR returns for our shareholders. As ever, we look forward to keeping the market updated on our progress over the coming months”
For the oil and gas business, meanwhile, Thursday’s financial results statement for the nine-month period ending December 31 highlighted that the company remains fully funded for its participation in a planned two well exploration programme offshore Guyana.
At December the company had US$16.35mln of cash and the pre-revenue firm reported a net loss of US$642,375.
Operationally, the company said multiple light sweet oil drilling prospects are currently being reviewed. High graded prospects are being lined up for drilling.
The company said that Guyana continues to be one of the most prolific exploration regions in the world, hosting more than 9bn barrels of oil discovered in the last five years in blocks neighbouring the company’s Orinduik block.
“We continue to work with our partners in the Orinduik block to finalise drilling selection and look forward to recommencing drilling activity in the coming months,” Gil Holzman said.
“We remain very confident in Guyana's prospectivity as a hydrocarbon basin and the upside potential it offers. The recent increase in oil prices makes our existing discoveries in Guyana and drilling prospects inventory ever more attractive.”