Eco (Atlantic) Oil & Gas Ltd. has agreed to acquire a 75% operated interest in Block 1 offshore South Africa, expanding its presence in the Orange Basin.
Eco (Atlantic) Oil & Gas Ltd. has agreed to acquire a 75% operated interest in Block 1 offshore South Africa, expanding its presence in the Orange Basin.
Through its wholly-owned subsidiary, Azinam South Africa Limited, Eco Atlantic will purchase this stake from Tosaco Energy (Proprietary) Limited. This strategic acquisition positions Eco Atlantic as the operator of a new exploration right located close to major oil & gas discoveries in Namibia, just across the maritime border.
Eco Atlantic will pay $150,000 upon signing, $225,000 upon issuance of the exploration right, and $375,000 upon completion of a resource report. The company will also carry the remaining 25% interest through the first three years of the work programme, up to a total of $2.3 million.
“Following completion of this Farm-in, Eco will have one of the largest blocks in the entire Orange Basin,” Eco Atlantic's COO, Colin Kinley, said in a company statement.
“This is a strategic play for Eco that we have worked on over the past year, focusing on both Oil and Gas potential, and where we believe there are significant near shore prospective gas resources.”
Covering 19,929 km2 in area, Block 1 is located in the Orange Basin in South Africa, near the Namibian border. The triangular-shaped block has significant potential for oil and gas discoveries, given its proximity to recent discoveries like Shell’s Graff find and Galp’s Mopane discovery.
“With the reach of the block some 250km out into the Atlantic, this puts the West end of the Block into highly prospective opportunities for oil being just South and on trend with Shell's Graff discovery and Galp's Mopane discoveries, and North of our 3B/4B Block oil targets recently farmed out to TotalEnergies and QatarEnergy," Colin Kinley added.
Eco Atlantic says the block has existing 2D and 3D seismic data, and no additional seismic acquisition or drilling is planned in the initial three-year period.
The company has also relinquished its 50% interest in offshore Block 2B, where it drilled the Gazania-1 well in 2022.
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Through its wholly-owned subsidiary, Azinam South Africa Limited, Eco Atlantic will purchase this stake from Tosaco Energy (Proprietary) Limited. This strategic acquisition positions Eco Atlantic as the operator of a new exploration right located close to major oil & gas discoveries in Namibia, just across the maritime border.
Eco Atlantic will pay $150,000 upon signing, $225,000 upon issuance of the exploration right, and $375,000 upon completion of a resource report. The company will also carry the remaining 25% interest through the first three years of the work programme, up to a total of $2.3 million.
“Following completion of this Farm-in, Eco will have one of the largest blocks in the entire Orange Basin,” Eco Atlantic's COO, Colin Kinley, said in a company statement.
“This is a strategic play for Eco that we have worked on over the past year, focusing on both Oil and Gas potential, and where we believe there are significant near shore prospective gas resources.”
Covering 19,929 km2 in area, Block 1 is located in the Orange Basin in South Africa, near the Namibian border. The triangular-shaped block has significant potential for oil and gas discoveries, given its proximity to recent discoveries like Shell’s Graff find and Galp’s Mopane discovery.
“With the reach of the block some 250km out into the Atlantic, this puts the West end of the Block into highly prospective opportunities for oil being just South and on trend with Shell's Graff discovery and Galp's Mopane discoveries, and North of our 3B/4B Block oil targets recently farmed out to TotalEnergies and QatarEnergy," Colin Kinley added.
Eco Atlantic says the block has existing 2D and 3D seismic data, and no additional seismic acquisition or drilling is planned in the initial three-year period.
The company has also relinquished its 50% interest in offshore Block 2B, where it drilled the Gazania-1 well in 2022.
For more industry news and the latest reports sign up to our monthly newsletter:
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