The acquisition includes a 50% operating stake in Block 2B in South Africa’s Orange Basin
Eco (Atlantic) Oil & Gas (Eco Atlantic) has agreed to acquire the offshore petroleum exploration asset base of Azinam in South Africa and Namibia in exchange for a stake of 16.65% in the enlarged group after the closing of the deal.
In this connection, the Canadian oil and gas firm has inked a memorandum of understanding (MOU) to acquire 100% of Azinam Group, a fully-owned subsidiary of Azinam.
In South Africa’s Orange Basin, Eco Atlantic will get a working interest of 50% along with operatorship in Block 2B. The company’s partners in the block will be Africa Energy (27.5%), Panoro Energy (12.5%), and Crown Energy (10%).
Block 2B already contains a previous light oil discovery following the drilling of the Soekor A-J1 well, which was drilled in 1988. An exploration well is planned to be drilled in the block in the second half of this year.
Besides, Eco Atlantic will acquire a material working stake of 20% in the deepwater 3B/4B Block and the shallow water and nearshore 3B/4B blocks where it will bolster its ongoing partnership with Africa Oil as the operator and 20% working interest partner.
In Namibian waters, Eco Atlantic will gain additional working stakes in its current oil blocks where Azinam is a partner. The blocks are Petroleum Exploration Licenses (PELs) #97, #98, and #99.
The deal will increase Eco Atlantic’s net working interest in the three PELs to 85%. The company said that working interests on the offshore Namibian blocks are the same as its existing stake in PEL #100.
Eco Atlantic is the operator on all the four Namibian PELs.
Eco Atlantic co-Founder and CEO Gil Holzman said: “We are delighted to update the market on this exciting transaction and welcome the stronger alignment with Africa Oil Corp. and the broader Lundin Group through direct partnership in Blocks 3B/4B and 2B.
“The acquisition strengthens our long-term and strategic position in Namibia, giving us 85% and Operatorship in four highly prospective blocks, and gives us added versatility as we look to partner with a major player to help accelerate further exploration activities in the country’s burgeoning energy industry.”
The closing of the deal is subject to the signing of a share purchase agreement and satisfactory execution of due diligence and any required approvals from the South African and Namibian governments as well as the TSX Venture Exchange.