TORONTO, ON / ACCESSWIRE / August 28, 2024 / Eco (Atlantic) Oil & Gas Ltd. (AIM:ECO)(TSX-V:EOG), the oil and gas exploration company focused on the offshore Atlantic Margins in South Africa, Namibia, and Guyana, is pleased to announce completion of a farm down of a 13.75% Participating Interest in Block 3B/4B offshore the Republic of South Africa ("the Block") and Transfer of Operatorship of the Block after receipt of the requisite regulatory approvals (Section 11) from the government of South Africa ("Completion"). Eco now holds a 6.25% interest in Block 3B/4B.
Further to the Company's announcement on 6 March 2024 detailing the Farmout Agreement ("FOA"), Azinam Limited ("Azinam"), Eco's wholly owned subsidiary, has farmed down a 13.75% Participating Interest in Block 3B/4B, offshore the Republic of South Africa as part of an aggregate 57% farm down transaction along with its Joint Venture ("JV") Partners Africa Oil SA Corp. ("Africa Oil") and Ricocure (Proprietary) Limited ("Ricocure") to TotalEnergies EP South Africa S.A.S., who will become Operator ("TotalEnergies") and QatarEnergy International E&P LLC ("QatarEnergy") (the "Transaction").
Pursuant to the terms of the FOA, following Completion Eco is now due to receive US$8.3million in total as part of the 3B/4B Transaction, including Completion linked milestone payments of US$4m from Africa Oil and US$1.56m from Ricocure, as referred to in the Company's announcement of 6 March 2024. Further payments, amounting to $11.5m will be payable to Eco from TotalEnergies, QatarEnergy and Africa Oil on spudding of the first exploration well.
Following Completion, TotalEnergies is now the Operator of the Block, holding a 33% Participating Interest; QatarEnergy International E&P LLC, holds a 24% Participating Interest; Africa Oil SA Corp, a wholly owned subsidiary of Africa Oil Corp. retains a 17% Participating Interest; Azinam Limited, a wholly owned subsidiary of Eco Atlantic, retains a Participating Interest of 6.25%; and Ricocure (Proprietary) Limited, retains a 19.75% Participating Interest.
Gil Holzman, Co-founder and Chief Executive Officer of Eco Atlantic, commented:
"I am grateful to the Eco team and our advisors for their support in completing this transaction. We look forward to continuing our strong working relationship with all the JV partners, the South African Government, and the new Operator TotalEnergies. Block 3B/4B sits in a prolific hydrocarbon jurisdiction and we are excited to continue preparations for first drilling on the block under the leadership of TotalEnergies.
"Completion of the transaction further strengthens Eco's balance sheet and enables us to focus and continue progressing our wider work programmes and farm out processes in Eco's asset portfolio in Guyana and Namibia, with no shareholder dilution."
**ENDS**
For more information, please visit www.ecooilandgas.com or contact the following:
Eco Atlantic Oil and Gas | c/o Celicourt +44 (0) 20 8434 2754 |
Gil Holzman, CEO Colin Kinley, COO Alice Carroll, Executive Director |
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Strand Hanson (Financial & Nominated Adviser) | +44 (0) 20 7409 3494 |
James Harris James Bellman |
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Berenberg (Broker) | +44 (0) 20 3207 7800 |
Matthew Armitt Detlir Elezi |
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Celicourt (PR) | +44 (0) 20 7770 6424 |
Mark Antelme Jimmy Lea |
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The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018 (as amended).
About Eco Atlantic:
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. Eco 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.
Offshore Guyana, in the proven Guyana-Suriname Basin, the Company operates a 100% Working Interest in the 1,354 km2 Orinduik Block. In Namibia, the Company holds Operatorship and an 85% Working Interest in four offshore Petroleum Licences: PELs: 97, 98, 99, and 100, representing a combined area of 28,593 km2 in the Walvis Basin. Offshore South Africa, Eco holds a 6.25% Working Interest in Block 3B/4B and pending government approval a 75% Operated Interest in Block 1, in the Orange Basin, totalling some 37,510km2.
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SOURCE: Eco (Atlantic) Oil and Gas Ltd.
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