Eco (Atlantic) Oil & Gas Ltd. has announced its farm-in and acquisition of a 75% working interest in Block 1 Offshore South Africa Orange Basin. The company, through its subsidiary Azinam South Africa Limited, will become the operator of the new exploration right. The block, located on the Namibian Border in South Africa, covers an area of 19,929km2 and is situated offshore in the Orange Basin. The farm-in acquisition involves a payment structure and a commitment to carry the remaining 25% interest through the budget and work program for the first three years.
The block already has significant 2D and 3D seismic data completed, and no additional seismic acquisition or drilling of wells is planned during the carried period. Eco will focus on interpretation and analysis required for its planned work program with its in-house exploration team. The farm-in is subject to normal governmental approvals, and no field activity is currently planned that requires environmental permitting.
In addition to the acquisition, Eco has confirmed the relinquishment of its 50% working interest in operated offshore Block 2B in South Africa. The company considers Block 2B a non-core asset in its portfolio, given its interests in Namibia, Block 3B/4B, and Block 1 in South Africa, as well as in Guyana.
Colin Kinley, Co-founder and Chief Operating Officer of Eco Atlantic, highlighted the strategic significance of the acquisition, stating, "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."
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. The company 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.