REG - Eco (Atlantic) O&G - Update on Gazania-1 well, offshore South Africa

Eco (Atlantic) Oil & GasAnnouncement

18/11/2022 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20221118:nRSR8375Ga&default-theme=true

RNS Number : 8375G  Eco (Atlantic) Oil and Gas Ltd.  18 November 2022

18 November 2022

 

ECO (ATLANTIC) OIL & GAS LTD.

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

 

Update on Gazania-1 well, offshore South Africa

Commencing detailed analysis and plans to drill at Block 3B/4B

 

Eco Atlantic (AIM: ECO, TSX‐ V: EOG), the oil and gas exploration company
focused on the offshore Atlantic Margins, announces that the Gazania-1 well on
Block 2B, offshore South Africa, which spudded on October 10, 2022, reached
target depth of 2,360m but did not show evidence of commercial hydrocarbons.
The well will now be plugged and abandoned as planned.

 

The well logging is currently on-going and the JV Partners will undertake a
detailed analysis of the results, which will inform our future plans. The JV
Partners submitted a Production Right Application to the Petroleum Agency of
South Africa ("PASA") on November 15, 2022, for Block 2B, based on the
existing oil discovery of AJ-1 and potential future operations.  Therefore,
the JV Partners have time to conduct further analysis and integration of the
Gazania-1 well data to allow them to determine the next steps on the Block.

 

The Company, alongside its respective JV Partners, will now move on to
executing our plans for more exploration wells, including a two-well campaign
on Block 3B/4B offshore South Africa planned to begin in 2023, and at least
one well into Cretaceous targets on the Orinduik Block offshore Guyana.  As
announced by the Operator of Block 3B/4B, a collaborative farm-out process, up
to 55% gross WI, has been ongoing and we look forward to updating the market
on this in due course.

 

Colin Kinley, Co-Founder and Chief Operating Officer of Eco Atlantic,
commented:

"We very much appreciate the stakeholder and shareholder support on this well
that was safely drilled with no environmental issues. Early challenges with
weather and service logistics on this well cost us a bit of time to get
started, however we are happy with the overall technical operation of the
well.

Gases normally associated with light oil were encountered throughout the
drilling of the Gazania-1 well. This, in our view, confirms the active
hydrocarbon system, proven by the A-J1 discovery well in 1988, extends to the
part of the basin where the Gazania-1 well is located. Further seismic
interpretation will likely lead to the definition of viable areas for trapping
downdip of Gazania-1 closer to the 1988 oil discovery A-J1.

"While the well results are obviously disappointing at this location, we
remain optimistic for this basin and look forward to continuing our
exploration efforts".

Gil Holzman, Co-Founder and Chief Executive Officer of Eco Atlantic, added:

"While it is naturally disappointing not having made a commercial discovery,
the Gazania-1 well was only the first of four wells we have planned for the
next 18-24 months across our wider portfolio.  We now move on to executing
our plans for more exploration wells; a two well campaign on Block 3B/4B
offshore South Africa planned to begin in 2023, and at least one well into
Cretaceous targets on the Orinduik Block offshore Guyana.  A collaborative
farm-out process on 3B/4B has been ongoing with the Operator and JV partners
and we look forward to updating the market on this in due course.

 

"I want to thank our internal operations team and NRG Well Management for
their excellent performance executing and operating the Gazania-1 well, the
Government of South Africa and PASA for their professional support throughout,
and all our JV Partners at Africa Energy, Panoro, and Crown Energy. We have
established ourselves as a qualified and reliable Offshore Operator. This
experience will be extremely useful for our future exploration campaigns,
particularly upcoming on Block 3B/4B."

 

The JV partnership in respect of Block 2B comprises Eco Atlantic (50% WI and
Operator), Africa Energy Corp (27.5% WI), Panoro 2B Limited, a subsidiary of
Panoro Energy ASA (12.5% WI), and Crown Energy AB (10% WI).

**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, Head of Corporate Sustainability         +44(0)781 729 5070
 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
 Echelon Capital (Financial Adviser N. America Markets)

 Ryan Mooney                                             +1 (403) 606 4852

 Simon Akit                                              +1 (416) 8497776

 Celicourt (PR)                                          +44 (0) 20 8434 2754
 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).

 

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 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 is Operator and holds a 50% working interest in
Block 2B and a 20% Working Interest (to be increased to a 26.25% Working
Interest, subject to Completion of the Acquisition announced 27 June 2022) in
Blocks 3B/4B operated by Africa Oil Corp., totalling some 20,643 km(2).

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  DRLDBBDBXUBDGDR