Eco Atlantic Oil & Gas is set to be the latest Canadian firm to list on London's junior market

 
Courtney Goldsmith
Follow Courtney
Eco Atlantic said investor interest is strong in London
Eco Atlantic said investor interest is strong in London (Source: Getty)

Tomorrow, Eco Atlantic Oil and Gas is set to be the second Canadian energy firm to list on London's Alternative Investment Market (Aim) in a month.

The Toronto Stock Exchange-listed company holds Atlantic licences offshore Guyana and Namibia, and said it raised £5m after originally aiming for around £2m to £3m in funds it will use to push ahead with exploration and work programmes.

Eco's main focus is jump-starting its Guyana project with partner Tullow Oil. The firm's block is just 6.5 kilometres from ExxonMobil's world-class Liza discoveries that have been declared commercial with up to 1.4bn barrels of oil equivalent.

Originally, Eco was set to start drilling in 2019, but chief executive Gil Holzman said he wanted to use the funds raised to start work as soon as possible. "Instead of waiting, we decided to enhance and expand the programme," said Holzman.

Eco will be the only Aim-listed company to hold an oil and gas asset in Guyana.

As the second Canadian energy firm in a month to make the move to the London market, Holzman said: "Companies in our sector understand there is a market for us in London more than Toronoto."

The company has seen investor interest growing from London over the past year. ​"UK investors appreciate and understand international exploration companies more than any other market," he added. Holzman said Aim works to attract and accommodate companies like Eco from Canada to London.

Oil and gas companies are making a comeback on Aim this year as commodity prices continue to recover, propping up mid- to large-cap miners, a report from broker FinnCap found.

Eco also has four offshore licences in Namibia which are near major farm-in activity from companies including Repsol, Tullow, BP and Galp. The company's market capitalisation on admission will be £20m.

Read more: This Appalachian-focused oil firm is listing in London tomorrow

Related articles