In a significant expansion of its offshore portfolio, Eco (Atlantic) Oil & Gas Ltd. (AIM: ECO, TSX-V: EOG) has announced a major acquisition in the Orange Basin, off the coast of South Africa. The oil and gas exploration company, through its wholly owned subsidiary, Azinam South Africa Limited, will acquire a 75% working interest from Tosaco Energy (Proprietary) Limited and will assume the role of operator for the new exploration right in Block 1.

Financial Terms of the Acquisition

The acquisition, valued at a total of $750,000, involves an initial payment of $150,000 upon signing, followed by $225,000 upon the issuance of the Section 11 government title transfer. An additional $375,000 will be payable upon the completion of a TSX-V/AIM compliant resource report. Furthermore, Eco Atlantic will carry the remaining 25% interest through the budget and work program for the first three years, covering up to $2.3 million of the total work program.

Strategic Significance of Block 1

Located on the Namibian border, Block 1 spans an extensive 19,929 square kilometers in the triangular section of the Orange Basin. It is strategically positioned approximately 174 kilometers off the South African shoreline and extends 263 kilometers west into deep water. The area has already undergone significant 2D and 3D seismic data analysis, with no further seismic acquisition or drilling planned for the next three years. During this period, Eco Atlantic will focus on the interpretation and analysis necessary for its planned work program.

The acquisition is subject to standard governmental approvals, and no field activity requiring environmental permitting is currently planned.

Colin Kinley, Co-founder and Chief Operating Officer of Eco Atlantic, expressed optimism about the acquisition, noting the Orange Basin’s emerging status as a leading oil and gas play globally. Kinley highlighted the proximity of significant gas discoveries and the potential for new oil discoveries in the region, aligning with similar plays in Guyana where Eco Atlantic has established a significant presence.

This strategic acquisition marks a pivotal moment for Eco Atlantic as it aims to consolidate its presence in a region with burgeoning oil and gas potential. The relinquishment of its 50% interest in the non-core Block 2B further underscores Eco Atlantic’s commitment to focusing on high-potential areas within its portfolio.

  Eco (Atlantic) Oil & Gas, offshore exploration, oil and gas industry, Orange Basin, South Africa oil exploration, strategic acquisitions