Eco Atlantic Expands South Africa, Namibia Portfolio
Oil and gas exploration company Eco Atlantic Oil & Gas has signed a definitive purchase deal of the Azinam Group and its asset portfolio which will enable the firm to add more acreage offshore South Africa and Namibia.
Eco Atlantic previously stated that it inked a memorandum of understanding (MOU) to acquire the Azinam Group. Now the two signed a definitive Share Purchase Agreement to acquire 100 percent of Azinam Group in return for a 16.5 percent equity stake in the company. The acquisition is expected to complete in two to three weeks pending TSX-V approval.
"We are very pleased to have signed the final definitive SPA to acquire Azinam Group. This now puts the company a step further towards joining all of Azinam's offshore exploration acreage into our broader portfolio,” Gil Holzman, Co-Founder and CEO of Eco Atlantic, said.
The buy will enable Eco to acquire 50 percent working interest in the Orange Basin, offshore South Africa, and operatorship in Block 2B, along with a material working interest of 20 percent in the deepwater 3B/4B Block, and the shallow water and nearshore 3B/4B Blocks.
Eco will also expand its portfolio with additional working interests offshore Namibia in its current oil blocks – petroleum exploration licenses 97, 98, and 99. Azinam is a partner in the licenses. With the sale, Eco increased its net working interest in these licenses to 85 percent following completion, which will then align with the firm’s existing 85 percent interest in license 100.
According to Eco, Azinam will also issue warrants over new common shares in Eco exercisable only in case of a producible commercial discovery on Block 2B or Block 3B4B.
As for other operations, Eco stated that it was in discussions with key existing stakeholders concerning underwriting the funds required to participate directly in the 2022 Block 2B South Africa drilling program.
“We are working towards drilling a well on Block 2B, a highly prospective play in the Orange Basin, offshore South Africa, close to the recent discovery by Shell and QatarEnergy in the Orange Basin in Namibia. The well is planned for the second half of this year. The company also anticipates drilling a further exploration well in Guyana following this,” Holzman stated.
“We also evaluate that Block 3B/4B, with the Block Partners at Africa Oil and Ricocure in the Orange Basin, South Africa, is directly correlated to the Graff-1 well, which was announced on February 4, 2022, by Namcor and block partners as a light oil discovery in the primary and secondary targets.”
“We look forward to firming up our exciting drilling plans and updating our shareholders on the funding structure and timing of the wells in due course,” Holzman added.
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