REG - Eco (Atlantic) O&G - Eco Farms into Block 1 Offshore South Africa

Eco (Atlantic) Oil & GasAnnouncement

05/06/2024 07:00

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RNS Number : 1260R  Eco (Atlantic) Oil and Gas Ltd.  05 June 2024

5 June 2024

 

ECO (ATLANTIC) OIL & GAS LTD.

("Eco," "Eco Atlantic," "Company," or together with its subsidiaries, the
"Group")

 

Eco Atlantic Farms into 20,000km(2) Block 1 Offshore Orange Basin South Africa / Namibia Border to hold 75% Operated Interest

 

Eco (Atlantic) Oil & Gas Ltd. (AIM: ECO, TSX ‐ V: EOG), the oil and
gas exploration company focused on the offshore Atlantic Margins, announces
the Farm-In into Block 1 Offshore South Africa Orange Basin. Through its 100%
owned subsidiary Azinam South Africa Limited ("Azinam"), the Company will
farm-in and acquire a 75% Working Interest ("WI") from Tosaco Energy
(Proprietary) Limited ("Tosaco") and will become Operator of a new Exploration
Right (the "Acquisition"). Tosaco intends to transfer its remaining 25%
Interest to OrangeBasin Oil and Gas (Proprietary) Limited - a newly formed
South African entity with a Broad-Based Black Economic Empowerment ("B-BBEE")
rating.

 

About Block 1 Acquisition:

Block 1 is 19,929km(2) in area and is located on the Namibian Border in South
Africa. The triangular shaped block is located offshore in the Orange Basin.
The Eastern side of the block is approximately 174km off the South African
shoreline, and the block reaches out some 263km West into deep water in the
Orange Basin.

 

Terms of the 75% WI Farm-in Acquisition are as follows: US$150k payable upon
signing, US$225k payable upon issuance of Section 11 (Government title
transfer) and US$375k payable upon a TSX-V/AIM compliant Resource Report to be
commissioned by Eco. The Company will carry the remaining 25% Interest through
the Budget and Work Program for the first three years up to an agreed sum of
US$2.3 million of a total work program.

 

The block has significant 2D and 3D seismic data already completed and no
additional seismic acquisition or drilling of wells is planned in the
three-year carried period. During this period, Eco will complete the
interpretation and analysis required for its planned Work Program with its
in-house exploration team. The Farm-in is subject, inter alia, to normal
Governmental approvals and no field activity is currently planned that
requires environmental permitting.

 

Block 2B Relinquishment:

Further, the Company confirms that it is relinquishing its 50% WI Operated
offshore Block 2B in South Africa where it drilled its 2022 Gazania-1 well
offsetting the AJ-1 oil discovery. The Company has completed all necessary
documentation, and environmental audits, and has informed the Petroleum Agency
of South Africa ("PASA"), being the regulator for the Government of South
Africa. Eco's board considers Block 2B a non-core asset in the portfolio given
the Company's interests in Namibia, Block 3B/4B and Block 1 in SA and in
Guyana.  Following acceptance by the PASA of this relinquishment, the Company
will have no further liability in respect of Block 2B.

 

Colin Kinley, Co-founder and Chief Operating Officer of Eco Atlantic,
commented:

"The Orange Basin continues to prove to be one of the newest and most prolific
plays in the world and is running similar statistics to our Guyana play.
Following completion of this Farm-in, Eco will have one of the largest blocks
in the entire Orange Basin. This is a strategic play for Eco that we have
worked on over the past year, focussing on both Oil and Gas potential, and
where we believe there are significant near shore prospective gas resources.
There are inboard gas discoveries on the block, Kudu to the North, and
multiple discoveries in the Ibhubesi field to the South. With the reach of the
block some 250km out into the Atlantic, this puts the West end of the Block
into highly prospective opportunities for oil being just South and on trend
with Shell's Graff discovery and Galp's Mopane discoveries, and North of our
3B/4B Block oil targets recently farmed out to TotalEnergies and QatarEnergy."

 

 Figure 1: Eco Atlantic's South Africa Acreage

 

**ENDS**

 

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

 Eco Atlantic Oil and Gas                           c/o Celicourt +44 (0) 20 8434 2754
 Gil Holzman, CEO

 Colin Kinley, COO

 Alice Carroll, Executive Director
 Strand Hanson (Financial & Nominated Adviser)

                                                    +44 (0) 20 7409 3494
 James Harris

 James Bellman

 Berenberg (Broker)                                 +44 (0) 20 3207 7800
 Matthew Armitt

 Detlir Elezi

 Celicourt (PR)                                     +44 (0) 20 7770 6424
 Mark Antelme

 Jimmy Lea

 

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).

 

About Eco Atlantic:

 

Eco Atlantic is a TSX-V and AIM-quoted Atlantic Margin-focused oil and 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 intensity oil and
gas in stable emerging markets close to infrastructure.

 

Offshore Guyana, in the proven Guyana-Suriname Basin, the Company operates a
100% Working Interest in the 1,354 km(2) Orinduik Block. In Namibia, the
Company holds Operatorship and an 85% Working Interest in four offshore
Petroleum Licences: PELs: 97, 98, 99, and 100, representing a combined area of
28,593 km(2) in the Walvis Basin.  Offshore South Africa, Eco holds a 20%
Working Interest in Block 3B/4B, in the Orange Basin, totalling some
20,643km(2).

 

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