Eco Atlantic announce farming agreement
Oil explorer Eco Atlantic Oil and Gas this week announced through the Stock Exchange News Service (SENS) that it has accepted an offer from Azimuth Namibia Limited (AziNam), who have subsequently increased its interest in Blocks 2111B and 2211A by an additional 10%.
The block forms part of Eco Atlantic’s offshore blocks in the Walvis Bay basin. This will become Eco Atlantic’s second farming agreement and comes a week after its first. Former Deputy Minister of Mines and Energy, Hon. Helmut Angula serves as a director of Eco Atlantic Oil and Gas together with his daughter, Phillipine Angula.
Following the agreement, AziNam will bear an additional 10% of the operating costs on the Guy block in addition to NAMCOR’s interest. Blocks 2111B and 2211A are contained within the Guy block. Upon completion of the transaction, AziNam will be responsible for 51% of the costs for the 1000 sq km three dimensional survey, further reducing Eco Atlantic´s financial obligation on the Guy block. Eco Atlantic will remain the operator of the Guy block.
This transaction is subject to a number of conditions, including the approval of the Ministry of Mines and Energy. Gil Holzman, President and CEO of Eco Atlantic said: “We are very pleased to enter into this agreement with AziNam, our long-standing partner on our offshore Namibian blocks. AziNam brings vast G&G experience and a profound regional understanding to the partnership, as well as the ability to finance its portion of the exploration programme. We welcome AziNam´s decision to increase its working interest in the Guy Block by 10% and to carry NAMCOR on that working interest portion. The transaction enables us to reduce our financial risk and embark with the 3D seismic programme as planned. Eco Atlantic´s recent farm-out initiatives, including the recently disclosed transaction with Tullow in which our financial costs on the Cooper Block are now fully carried, reflects Eco Atlantic´s strategy of reducing financial exposure by attracting experienced, high quality industry partners. Our technical team is currently working on the logistics for the Guy and Cooper blocks and defining a plan for the Sharon block in the upcoming weeks.” Eco Atlantic currently holds a 70% working interest in the Guy block, while AziNam holds a 20% working interest, and NAMCOR a 10% working interest. Following the Transfer, Eco Atlantic and Gas will hold a 60% working interest with an obligation to fund 49% of the three dimensional seismic survey, AziNam will hold a 30% interest with an obligation to fund 51% of the three dimensional seismic survey, and NAMCOR will retain its 10% carried interest.