Namibia Explorer Expands Offshore Position

Namibia Explorer Expands Offshore Position
Eco (Atlantic) Oil & Gas Ltd. has negotiated the reissuance of all four of its offshore Namibia licenses in the southwest African country's Walvis Basin.

Eco (Atlantic) Oil & Gas Ltd. (AIM: ECO, TSX-V: EOG) reported Monday that it has negotiated the reissuance of all four of its offshore Namibia licenses. Moreover, the firm stated that it has increased its acreage position in the frontier exploration region by winning four new petroleum exploration licenses (PELs) on its existing offshore blocks in the southwest African country's Walvis Basin.

“Successfully renegotiating our four licenses offshore Namibia and being awarded over 28,500 square kilometers in one of the most exciting exploration hotspots in the world is a significant milestone for Eco,” Eco Atlantic President and CEO Gil Holzman remarked in a written statement emailed to Rigzone. “Participation in the regional exploration with a number of the major international oil companies now in Namibia, and having the Namibia Ministry of Mines and Energy acknowledge both our long-term investment and our contribution to the fundamental exploration of the region, is very meaningful, both for us as a business and an explorer.”

Eco Atlantic operates three of the four offshore Namibia licenses, which include:

  • Cooper: 5,788 square kilometers in Block 2012A, operated by Eco Atlantic with a 54.3-percent working interest
  • Sharon: 5,700 square kilometers in Block 2213, operated by Eco Atlantic with a 56.7-percent working interest
  • Guy: 11,457 square kilometers in blocks 2111B and 2211A, 47.2-percent owned by majority partner Eco Atlantic
  • Tamar: 5,648 square kilometers in blocks 2211B and 2311A, operated by Eco Atlantic with an 85-percent working interest.

According to Eco Atlantic, the new PELs span roughly 28,593 square kilometers and hold more than 2.362 billion barrels of oil equivalent of prospective P50 resources. The company stated that it has negotiated the reissuance and establishment of a new 10-year life cycle for each of the four PELs. It noted that NAMCOR, Namibia’s National Petroleum Corporation, has a standard 10-percent working interest in each license. It added that local Namibian business partners hold a five-percent working interest on each block. Azinam Group participates in a minority capacity on the Cooper, Sharon and Guy blocks, Eco Atlantic also stated.

“The recent wildcat discoveries in South Africa and the entry into Namibia by ExxonMobil (NYSE: XOM), Total (NYSE: TOT), Qatar Petroleum and Shell (NYSE: RDS.A) over the last few years gives us significant confidence that further discoveries will soon be made in Namibia,” continued Holzman. “Near-term, we look forward to drilling campaigns planned by Shell, M&P and ExxonMobil. These companies are amongst the leading oil finders in the world. The new licenses represent a strategic value creation opportunity for Eco Atlantic, amid the increased interest in the area.”

Eco Atlantic stated that it has been granted a drilling permit on its Cooper Block. Colin Kinley, the company’s chief operating officer, noted the firm will follow a course similar to its approach in Guyana, where it also maintains a presence.

“Like Namibia, in Guyana our path remains unaltered,” stated Kinley. “We defined the opportunity, negotiated the Orinduik License and brought in material partners for both their technical and economic contributions, and we have carefully maintained our independence and ability to drive through to drilling without being anchored by partners budget or ambitions. In all our agreements, we maintain optionality and our own ability to drive the process. As the majority stakeholder and controlling interest in all our Namibian blocks, we welcome leading-edge exploration partners to bring their contribution to our ultimate ambition of discovery in the country, while also maintaining our strong independent business values.”

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