REG - Eco (Atlantic) O&G - Completion of Farm Down in Block 3B/4B

Eco (Atlantic) Oil & GasAnnouncement

28/08/2024 13:15

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RNS Number : 0309C  Eco (Atlantic) Oil and Gas Ltd.  28 August 2024

 

 

 

28 August 2024

 

ECO (ATLANTIC) OIL & GAS LTD.

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

 

Completion of Farm Down in Block 3B/4B Orange Basin South Africa to
TotalEnergies and QatarEnergy

 

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
 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

 

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 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 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 37,510km(2).

 

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