REG - Eco (Atlantic) O&G - Update on Block 1, Orange Basin, South Africa

Eco (Atlantic) Oil & GasAnnouncement

06/05/2025 07:00

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RNS Number : 4307H  Eco (Atlantic) Oil and Gas Ltd.  06 May 2025

6 May 2025

 

 

ECO (ATLANTIC) OIL & GAS LTD.

("Eco," "Eco Atlantic," "Company," or together with its subsidiaries, the
"Group")

Update on Block 1, Orange Basin, South Africa

Strategic acquisition of high-quality 2D and 3D seismic and well logs,
accelerating prospect maturation in one of the most compelling hydrocarbon
fairways globally

 

Eco (Atlantic) Oil & Gas Ltd. (AIM: ECO, TSX ‐ V: EOG), an Atlantic
Margin-focused oil and gas exploration company, is pleased to update
stakeholders on activities in its entry into Block 1 offshore South Africa,
located in the proven and highly prospective Orange Basin.

As previously announced, Eco, through its wholly owned subsidiary Azinam South
Africa Limited ("Azinam"), has entered into a Farm-In Agreement with Tosaco
Energy (Proprietary) Limited to acquire a 75% Working Interest and
Operatorship in Block 1 offshore South Africa. The Company is now in the final
stages of securing the requisite Section 11 regulatory approval to complete
the transfer of the interest and formalize operatorship, which is expected in
the near term.

Data Acquisition and Subsurface Intelligence

Eco has now completed the acquisition of Block 1's substantial volume of 3D
and 2D legacy data from the Petroleum Agency South Africa ("PASA") This
purchase includes:

 

·      Two 3D seismic surveys totalling 3,500 km² (2,000 km² and 1,500
km²)

·      20,000+ line kilometres of 2D seismic

·      Three key exploration well logs: AF-1, AO-1, and AE-1 (All
drilled on the block)

All data is of high-resolution quality and is processing-ready, with no
reprocessing or reconditioning required. The seismic surveys offer full
coverage across key structural and stratigraphic targets, from inboard
gas-prone zones to outboard oil-charged systems.

Historical Well Data and Hydrocarbon Shows

The block benefits from three legacy exploration wells drilled in the late
1980s by Soekor, South Africa's former state oil company. These include:

 

·      AF-1: Confirmed gas discovery with tested flow rates of 32.4
MMscfd

·      AE-1: Encountered gas shows and oil indications

·      AO-1: Provided key stratigraphic data and reservoir markers

All three wells were part of Soekor's regional Orange Basin program and offer
critical calibration for seismic interpretation and future prospect
de-risking.

Strategic Asset Overview

Block 1 spans 19,929 km² offshore South Africa, directly abutting the
Namibian border. The block extends from the shore to the continental shelf,
some 175km offshore then to ~263 km out into deep water, encompassing a full
margin transect from the shelf to deep water channel and fan complexes.

Water depths range from shallow shelf (~200 m) to deepwater (~1,000 m),
enabling a full spectrum of play types. The acreage is considered geologically
analogous to the Kudu gas field to the north and sits immediately south of
recent discoveries made by Galp Energia (Mopane), Shell (Graff, La Rona),
TotalEnergies (Venus), and Rhino Resources (Capricornus 1-X light oil
discovery).

Operational Readiness

Eco will assume operatorship of the block upon final regulatory approval. As
the current Exploration Right Budget and Work Plan does not involve field
operations, the program proceeds without the need for additional environmental
permitting for immediate interpretation and technical work to progress.

Colin Kinley, Co-Founder and COO of Eco Atlantic, commented:

"The Orange Basin has rapidly emerged as one of the most compelling
hydrocarbon fairways globally, with recent multi-billion-barrel discoveries
adjacent in Namibia extending directly into the geological runway of  Block
1. This asset provides Eco with material exposure across a full-margin basin
play-ranging from proven, gas-rich inboard sections to oil-prone targets in
the deepwater and ultra-deepwater domain."

"This strategic acquisition of high-quality 2D and 3D seismic, along with
historic well logs deliver massive value to the company. This acquisition is
currently conservatively estimated to replace US$50-60 million in acquisition
costs required for new exploration. The data quality enables us to
aggressively pursue subsurface interpretation and prospect ranking
immediately. This dataset provides a robust foundation for accelerated
prospect maturation and the opportunity to consider potential farm-out and
partnership conversations."

"In parallel with our South African work program, we are actively negotiating
farm-out and drilling participation opportunities on our Orinduik Block in
Guyana. We will update the market as those discussions progress. Our Walvis
Basin acreage in Namibia, particularly the ultra-deepwater blocks, is also
receiving strong interest as Orange Basin real estate becomes increasingly
competitive. We continue to engage with industry and government stakeholders
to advance partnerships across these core positions. Finally, our interest in
Blocks 3B/4B in South Africa-now operated by TotalEnergies-offers unique
upside potential, both on completion payment of farm down costs to Eco and
importantly drilling the significant resource opportunity assessed on the
block."

Eco remains focused on disciplined, value-driven exploration, with its strong
exploration team and entrepreneurial drive, and is committed to sourcing
leading technical opportunities and to deliver substantial long-term value to
its shareholders through partnerships and high impact exploration wells.

Corporate Presentation

Eco also announces that a new Corporate Presentation has been published on its
website and is available at the following link :
https://www.ecooilandgas.com/investors/results-presentation/
(https://www.ecooilandgas.com/investors/results-presentation/)

 

 Figure 1: Eco Atlantic's South Africa Acreage Position

 

 

**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, Chief Executive Officer

 Colin Kinley, Chief Operating Officer

 Alice Carroll, Head of Corporate Sustainability
 Strand Hanson (Financial & Nominated Adviser)

                                                    +44 (0) 20 7409 3494
 James Harris

 James Bellman

 Berenberg (Broker)                                 +44 (0) 20 3207 7800
 Matthew Armitt

 Detlir Elezi

 Celicourt (PR)                                     +44 (0) 20 7770 6424
 Mark Antelme

 Jimmy Lea

 Charles Denley-Myerson

 

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 km(2) 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 km(2) in the Walvis Basin.  Offshore South Africa, Eco holds a 5.25%
Working Interest in Block 3B/4B and pending government approval a 75% Operated
Interest in Block 1, in the Orange Basin, totalling some 37,510km(2).

 

 

 

 

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