LONDON: Eco Atlantic Oil & Gas Ltd. (AIM: ECO, TSX-V: EOG), an oil and gas exploration company focused on offshore Atlantic Margins, has announced a Farm-In into Block 1 Offshore South Africa’s Orange Basin.
Through its wholly-owned subsidiary, Azinam South Africa Limited, Eco will acquire a 75% Working Interest from Tosaco Energy (Proprietary) Limited. As part of the deal, Tosaco will transfer its remaining 25% Interest to OrangeBasin Oil and Gas (Proprietary) Limited, a newly formed South African entity with a Broad-Based Black Economic Empowerment (B-BBEE) rating.
Block 1 Acquisition Details:
Block 1 covers 19,929 km² and lies on the Namibian Border in South Africa.
The triangular-shaped block is offshore in the Orange Basin, approximately 174 km from the South African shoreline.
The Farm-In terms include payments of US$150k upon signing, US$225k upon issuance of Section 11 (Government title transfer), and US$375k upon a TSX-V/AIM compliant Resource Report.
Eco will carry the remaining 25% Interest through the Budget and Work Program for the first three years, up to a total of US$2.3 million.
The block already has significant 2D and 3D seismic data, and no additional seismic acquisition or drilling of wells is planned during the three-year carried period. Eco will focus on interpretation and analysis for its planned Work Program. The Farm-In is subject to normal Governmental approvals, with no current field activity requiring environmental permitting.
Additionally, Eco confirms the relinquishment of its 50% WI Operated offshore Block 2B in South Africa, considering it a non-core asset in its portfolio.
Colin Kinley, Co-founder and Chief Operating Officer of Eco Atlantic, commented: “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. Following completion of this Farm-in, Eco will have one of the largest blocks in the entire Orange Basin.
This is a strategic play for Eco that we have worked on over the past year, focussing on both Oil and Gas potential, and where we believe there are significant near shore prospective gas resources. There are inboard gas discoveries on the block, Kudu to the North, and multiple discoveries in the Ibhubesi field to the South. With the reach of the block some 250km out into the Atlantic, this puts the West end of the Block into highly prospective opportunities for oil being just South and on trend with Shell’s Graff discovery and Galp’s Mopane discoveries, and North of our 3B/4B Block oil targets recently farmed out to TotalEnergies and QatarEnergy.”
Eco Atlantic sells 6.25% stake in South Africa block to Africa Oil