REG - Eco (Atlantic) O&G - New Competent Person’s Resource Report

Eco (Atlantic) Oil & GasAnnouncement

21/03/2022 07:15

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RNS Number : 3656F  Eco (Atlantic) Oil and Gas Ltd.  21 March 2022

21 March 2022

 

ECO (ATLANTIC) OIL & GAS LTD.

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

 

Eco Atlantic Provides New Competent Person's Resource Report on Its Assets
Offshore Guyana, Namibia and South Africa

 

Eco (Atlantic) Oil & Gas Ltd. (AIM: ECO, TSX ‐ V: EOG), the oil and
gas exploration company focused on the offshore Atlantic Margins, is pleased
to announce the publication of an updated NI 51-101 compliant Competent
Person's Report ("CPR") on its assets Offshore Guyana, Offshore Namibia and
Offshore South Africa. The CPR was compiled by WSP USA Inc., of Boulder
Colorado, USA, an independent third-party auditor and can be found on the
Company's website.

 

The new CPR incorporates the increased interests in its Namibian assets and
the additional two blocks offshore South Africa resulting from the acquisition
of Azinam Group Limited ("Azinam") as announced on 11 March 2022. All
contractual and legal conditions required for completion have occurred save
for final approval from the TSX Venture Exchange, which is expected to be
received imminently. The CPR has been prepared on the basis that the
acquisition of Azinam has completed.

Summary of Unrisked Prospective Resource Estimates

 

                                 Gross                                        Net attributable to Eco's Interest
 Asset           Country         Low Estimate   Best Estimate  High Estimate  Low Estimate  Best Estimate  High Estimate  Operator
 Oil & liquids Prospective Resources (millions of barrels)
 Lower Risk
 Orinduik        Guyana          2,315          4,537          8,179          347           681            1,227          Tullow
 Cooper          Namibia         151            245            398            128           209            339            ECO
 2B              South Africa    209            491            984            104           246            492            ECO
 3B/4B           South Africa    973            3,088          7,138          195           618            1,428          Africa Oil
 Higher Risk                                    -
 Cooper          Namibia         283            507            843            241           431            717            ECO
 Guy             Namibia         1,671          4,924          10,937         1,421         4,185          9,297          ECO
 Sharon          Namibia         702            2,212          5,518          597           1,880          4,691          ECO
 Total for Oil & Liquids         6,304          16,004         33,998         3,033         8,249          18,189
 Gas Prospective Resources (billions of standard cubic feet)
 Lower Risk
 Orinduik        Guyana          1,798          3,626          6,811          270           544            1,022          Tullow
 Cooper          Namibia         141            240            407            120           204            346            ECO
 2B              South Africa    31             73             149            15            37             74             ECO
 3B/4B           South Africa    426            1,360          3,136          85            272            627            Africa Oil
 Higher Risk
 Cooper          Namibia         264            496            868            224           422            738            ECO
 Guy             Namibia         1,625          4,812          10,869         1,381         4,090          9,239          ECO
 Sharon          Namibia         668            2,176          5,466          568           1,849          4,646          ECO
 Total for Gas                   4,952          12,782         27,706         2,663         7,417          16,692

Source: Letha C. Lencioni, WSP USA Inc

Gustavson Associates LLC, who completed the last CPR in January 2020, is now a
part of WSP USA.

Note: Assets designated as "Lower Risk" have probability of success (POS)
estimated at 16%-81%, while those designated as "Higher Risk" have POS
estimated at 2%-3.5%. "Operator" is name of the company that operates the
asset. "Gross" are 100% of the reserves and/or resources attributable to the
licence whilst "Net attributable" are those attributable to Eco.

 

Report Highlights - Attributable Best Estimate, Prospective Resources

 

·   Guyana (Orinduik Block) - Net to Eco 681 mmbbls Oil and 544 BCF Gas

·   South Africa (Blocks 2B & 3B/4B) - Net to Eco 864 mmbbls Oil and
309 BCF Gas

·   Namibia (4 Blocks) - Net to Eco 6,705 mmbbls Oil and 6,565 BCF Gas

 

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

 

"With our current strategy for increasing our stakeholder asset base, we have
focused solely on strategic acquisitions that can add material and near-term
growth and catalysts for the company. The addition of the Azinam assets in
Namibia and South Africa have quickly added prospective resources to our
portfolio. As we work towards the completion of our recently announced binding
term sheet to acquire JHI's 17.5% interest in the Canje Block offshore Guyana
plus the maturation of additional resources currently being interpreted from
ongoing 3D processing in Block 3B/4B we expect to see even further growth of
the portfolio from here in the coming months".

 

Importantly our acquisitions and strategy to deliver mature drillable
prospects in the near term is driven in part by the current heated energy
market, the reduction in worldwide exploration, and the marked cycling we
anticipate through energy transition in the coming years. Eco has the capacity
to participate and provide strategic value accretion through the drill bit.
Our planned well for Q3 this year on Block 2B in South Africa is being quickly
followed by work on the potential to drill on Block 3B/4B in the Orange Basin,
directly adjacent to the recent discoveries announced by TotalEnergies and
Shell. We are also confidently progressing towards drilling in Orinduik block
offshore Guyana, subject to available funding, and look forward to confirming
a drill target and timing with our partners in the coming months. Assuming the
acquisition of JHI completes as planned in the coming months, this acquisition
will also provide us with the opportunity to participate in a number of
targets on the Canje Block as prospects are matured by ExxonMobil and
ourselves in the Guyana basin."

 

Qualified Person's Statement:

 

Letha C. Lencioni of WSP USA Inc., has reviewed the technical information
contained within this announcement for the purposes of the current Guidance
Note for Mining, Oil and Gas Companies issued by the London Stock Exchange.
Letha C. Lencioni is a Registered Professional Engineer in the states of
Colorado and Wyoming and has over 40 years' experience in the oil and gas
field.

 

All Reserves and Resources definitions and estimates detailed in this
announcement are based on the 2018 SPE/AAPG/WPC/SPEE Petroleum Resource
Management System ("PRMS").A link to the full CPR Report can be viewed online
at www.sedar.com (http://www.sedar.com/)  and is also available on the
Company's website: www.ecooilandgas.com (http://www.ecooilandgas.com/) .

 

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, Head of Marketing and IR                    +44(0)781 729 5070 | +1 (416) 318 8272
 Strand Hanson Limited (Financial & Nominated Adviser)

                                                            +44 (0) 20 7409 3494
 James Harris

 James Bellman

 Berenberg (Broker)                                         +44 (0) 20 3207 7800
 Emily Morris

 Detlir Elezi

 Celicourt (PR)                                             +44 (0) 20 8434 2754
 Mark Antelme

 Jimmy Lea
 Hannam & Partners (Research Advisor)
 Neil Passmore                                              +44 (0) 20 7905 8500

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).

 

Notes to editors:

 

 

About Eco Atlantic:

 

Eco Atlantic is a TSX-V and AIM quoted Atlantic Margin focused oil & 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 holds a 15%
Working Interest in the 1,800 km(2) Orinduik Block Operated by Tullow Oil.
In Namibia, the Company holds Operatorship and an 85% Working Interests in
four offshore Petroleum Licences: PEL's: 97, 98, 99 and 100 representing a
combined area of 28,593 km(2) in the Walvis Basin.

 

Offshore South Africa, Eco will become designated Operator and hold a 50%
working interest in Block 2B, and a 20% Working Interest in Blocks 3B/4B
operated by Africa Oil Corp., totalling some 20,643 km(2).

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