Eco (Atlantic) Oil & Gas has signed an assignment and share cancellation agreement with Africa Oil.
Azinam, a wholly owned subsidiary of Eco, will transfer to Africa Oil a 1% interest in Block 3B/4B offshore South Africa, including the associated Exploration Right and Joint Operating Agreement rights.
In exchange, Africa Oil agrees to cancel all its common shares in the company and warrants over common shares.
Upon completion, Eco will retain a fully carried 5.25% stake in Block 3B/4B, down from the present 6.25%
The block is 120-250 km offshore western South Africa, in water depths ranging from 300-2,500 m. BHP Billiton, the previous license holder, acquired a 10,000-sq-km GeoStreamer 3D survey over the acreage in 2012, which the current block 3B/4B partners reprocessed in 2022.
They are using the results to firm up leads and prospects for future drilling.
Offshore Namibia, a multi-block farmout process is underway for all or part of Eco's four petroleum exploration licenses 97, 98, 99 and 100 in the Walvis Basin, all of which the company operates.
Farm-out activities also continue for Eco’s Orinduik Block offshore Guyana. The company has noted news from the neighboring Stabroek Block, where operator Exxon Mobil is planning for a seventh development on the Hammerhead discovery area.
