REG - Eco (Atlantic) O&G - Exploration Right & 75% Interest in Block 1

Eco (Atlantic) Oil & GasAnnouncement

04/06/2025 07:00

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RNS Number : 3020L  Eco (Atlantic) Oil and Gas Ltd.  04 June 2025

4 June 2025

 

ECO (ATLANTIC) OIL & GAS LTD.

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

 

Eco Atlantic Secures Exploration Right and Transfer of 75% Interest in

Block 1 - South Africa's Orange Basin

 

Eco (Atlantic) Oil & Gas Ltd. (AIM: ECO, TSX ‐ V: EOG), a leading
independent oil and gas exploration company focused on the Atlantic Margin, is
pleased to announce that, further to the Farm-In Agreement announced on 5 June
2024, formal approval has been received from the South Africa Department of
Mineral and Petroleum Resources for both the Exploration Right and Section 11
transfer.  Accordingly, Eco has now secured a 75% Working Interest and full
Operatorship of Block 1 offshore South Africa - one of the most strategically
positioned assets in the highly prospective Orange Basin.  The Section 11
approval was the final condition precedent to establishing full legal transfer
of Eco's working interest in Block 1 from Tosaco Energy (Proprietary) Limited
("Tosaco"), and the associated milestone payment has been made by Eco.

This acquisition, completed through Eco's wholly owned subsidiary Azinam South
Africa Limited ("Azinam"), significantly expands the Company's Southern
African Orange Basin footprint and positions it as a key Operator at the
forefront of one of the world's most active and hydrocarbon-rich basins. The
remaining 25% interest is held by Tosaco.

Block 1, which spans a vast 19,929km², straddles the border between South
Africa and Namibia - directly adjacent to recent world-class discoveries by
Galp Energia (Mopane), Shell (Graff, La Rona), TotalEnergies (Venus), Rhino
Resources (Capricornus-1X), and the legacy Kudu Gas Field. The block offers
full margin transect coverage from the shoreline to deepwater (shore to 263km
offshore, in water depths up to 1,000m), encompassing both shallow and
deepwater exploration potential.

As previously announced, Eco has already acquired and is analyzing an
extensive and high-quality dataset, including both 2D and 3D seismic surveys
and regional well logs. The block includes the historic Soekor AF-1 gas
discovery, which tested at 32.4 MMscfd, and Soekor AE-1, which encountered oil
and gas shows which provides clear evidence of an active petroleum system.

The Company anticipates launching a formal farm-out process in respect of its
interest in Block 1 in August 2025, with respect to which further updates will
be provided in due course.

Block Summary:

·      Area: 19,929km² offshore South Africa

·      Location: Strategically positioned on the South Africa-Namibia
maritime border

·      Extent: From shoreline to ~263km offshore, covering the full
margin transect

·      Geological Scope: Broad spectrum of shallow and deepwater oil and
gas prospects

·      Water Depths: Shallow shelf to deepwater environments up to 1,000
meters

·      Proven Petroleum System: Adjacent and geologically analogous to
multiple recent discoveries: Galp Energia - Mopane, Shell - Graff and La Rona,
TotalEnergies - Venus, Rhino Resources - Capricornus-1X (light oil), Historic
Soekor Discoveries - AF-1 (32.4 MMscfd gas test) and AE-1 (oil and gas shows),
Kudu Gas Field

Eco Atlantic remains committed to disciplined, value-driven exploration. With
a strong technical foundation, entrepreneurial execution, and an unwavering
focus on high-impact opportunities, it continues to position itself as a
trusted partner in unlocking frontier basins and delivering long-term
shareholder value. The Company has established itself well in Namibia with
four Blocks currently being reviewed by international players to farm-in and
has a near term drilling opportunity in Guyana that it is currently
negotiating with partners to participate in the block.

Gil Holzman, Co-Founder and CEO of Eco Atlantic, commented:

"As the Orange Basin continues to demonstrate its world-class hydrocarbon
proof and potential, Eco's executive team has worked relentlessly over the
past 18 months to secure a premier asset on the South African side of the
basin. With the successful approval and execution of the Exploration Right and
75% Working Interest award, we are proud to have secured one of the largest
and prospective blocks in the entire basin with a known hydrocarbon footprint
- Block 1 - located directly on the South Africa-Namibia maritime border.
Block 1 adds to our portfolio in the Orange basin which also includes Block
3B/4B operated by TotalEnergies.

"We are grateful for the productive collaboration with the Government of South
Africa and its key agencies, particularly our valued partners at the Petroleum
Agency South Africa ("PASA"). I was honoured to attend the signing ceremony
yesterday at PASA's offices in Cape Town. This milestone reflects the
dedication and strategic focus of our leadership team in securing an asset
with existing hydrocarbon evidence and significant upside potential and
aligning with our strategy to partner directly with governments to secure
agreements in high potential secure jurisdictions and to lay groundwork for
future partnerships.

"Our technical team has already begun analysing the extensive, high-quality 2D
and 3D seismic, and well logs data, which materially accelerates our path to
drilling while reducing early-stage exploration costs and timelines. The
block's prior discoveries, including tested gas flows and oil shows, confirm
the presence of an active petroleum system.

"Initial interpretation is underway, and we are in the process of delineating
early leads to develop the exploration strategy. We are already seeing
significant inbound interests from international oil companies and mid-tier
partners. As a result, we anticipate launching a formal farm-out process in
August with further updates to follow in due course."

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

 Ciaran Walsh

 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 a 75% Operated Interest in Block 1, in the
Orange Basin, totalling approximately 37,510km(2).

 

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

Certain information set forth in this document contains forward-looking
information and statements including, without limitation, management's
business strategy, and management's assessment of future plans and operations.
Such forward-looking statements or information are provided for the purpose of
providing information about management's current expectations and plans
relating to the future, including successful negotiation of farm-in agreement,
results of exploration as proposed or at all. Forward-looking statements or
information typically contain statements with words such as "anticipate",
"believe", "expect", "plan", "intend", "estimate", "propose", "project",
"potential" or similar words suggesting future outcomes or statements
regarding future performance and outlook. Readers are cautioned that
assumptions used in the preparation of such information may prove to be
incorrect. Events or circumstances may cause actual results to differ
materially from those predicted as a result of numerous known and unknown
risks, uncertainties and other factors, many of which are beyond the control
of the Company. Although the Company believes that the expectations reflected
in these forward-looking statements are reasonable, undue reliance should not
be placed on them as actual results may differ materially from the
forward-looking statements. Factors that could cause the actual results to
differ materially from those in forward-looking statements include risks and
uncertainties identified under the headings "Risk Factors" in the Company's
annual information form dated July 29, 2024 and other disclosure documents
available on the Company's profile on SEDAR+ at www.sedarplus.ca.
(http://www.sedar.com) The forward-looking statements contained in this press
release are made as of the date hereof, and the Company undertakes no
obligation to update publicly or revise any forward-looking statements or
information, except as required by law.

 

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 by virtue of the Market
Abuse (Amendment) (EU Exit) Regulations 2019.

 

 

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