Eco acquires additional interest in South Africa's Block 3B/4B

ONTARIO, Canada —Eco (Atlantic) Oil & Gas Ltd.'swholly owned subsidiaryAzinam Ltd. has signed a farmout agreement to acquire an additional 6.25% participating interest in Block 3B/4B offshore South Africa from the Lunn Family Trust, one of the shareholders of Ricocure (proprietary) Ltd. 

On completion of the acquisition, Eco Atlantic will, through Azinam, hold a 26.25% participating interest in Block 3B/4B, with strategic alliance partners, Africa Oil Corp. (operator of the block) holding a 20% participating interest and Ricocure holding 53.75% participating interest.    

Block 3B/4B is located between 120 km and 250 km offshore South Africa in the Orange Basin directly south of the prolific multibillion barrels discoveries offshore Namibia announced earlier this year by Shell (Graff-1) and TotalEnergies (Venus-1).

The 3B/4B Block covers an area of ~17,581 sq km and lies in water depths ranging from 300 m to 2,500 m. The block partners are reprocessing a large 3D seismic survey that will be used to high-grade leads toward identifying drilling targets and preparing for a potential drilling campaign next year. 

The aggregate dollar equivalent consideration payable by Eco Atlantic to Lunn Family Trust under the agreement is US$10 million.

"We are extremely pleased to be increasing our interest in Block 3B/4B, which looks to be a very exciting license for all the partners involved," said Gil Holzman, Eco Atlantic's Co-Founder and CEO. "We are upbeat about the prospectivity of the license following the significant oil discoveries made earlier in the year offshore Namibia Orange Basin, and we are pleased to be strengthening our working relationship with Ricocure and Africa Oil Corp.  We are seeing growing industry interest in the entire Orange Basin and in particular in Block 3B/4B and are therefore very happy to have managed to increase our WI [working interest] on the block.

"We are working closely with our partners to progress the technical work required, which includes reprocessing the 3D seismic we have for the block, in order to evaluate and identify drilling prospects and high grade leads for a drilling campaign we are contemplating for next year. We are set for an exciting couple of months, and we look forward to keeping our stakeholders updated as we look to spud the Gazania-1 well on Block 2B, offshore South Africa, in early September 2022."

06.27.2022