Eco Atlantic Cuts Back in Namibia

ECO Atlantic Oil amp Gas has decreased its near to mid-term financial obligations by leasing out part of its offshore Namibian licences for carry and cash, and has revised and reduced its next year work programme in the country.

Through its wholly-owned subsidiary, Eco Oil and Gas, the company has struck an agreement with Azinam Limited, amending and restating the terms of the farmout agreement made in 2012 between the parties.

Eco announced on the Namibia Stock Exchange that it will receive US$3,65 million and will further reduce its financial commitments on its offshore petroleum blocks.

“The company is also pleased to announce that it has agreed with the Ministry of Mines and Energy to delay current planned 3D Survey programmes on its Guy and Sharon Blocks by at least one year to March 2016,” the company said.

SEISMIC Surveys

The company has agreed to transfer an additional 10% participating interest in Blocks 2111B and 2211A offshore Namibia to Azinam, in exchange for Azinam funding US$1 million for 100% of the recently completed 1 000 KM 2D seismic survey and associated processing.

Azinam will also pay for 66,44% of a 800km2 3D seismic programme on the Guy Block to be completed within the next 15 months. In addition, Azinam will pay US$150 000.

The company currently holds a 60% participating interest in the Guy Block subject to regulatory approval of previously announced farm-out. Post the transaction, the company will transfer operator-ship of the Guy Block to Azinam, and following the closing of the transaction, set out in the agreement, the company will hold a 50% participating interest. Namcor, the State-owned oil company has a 10% carried interest.

The company has also agreed to transfer an additional 10% participating interest in Blocks 2213A and 2213B offshore to Azinam in exchange for the full carry of 3 000 km of recent 2D data acquired on this block. Further, Azinam will fund 54% of a seismic survey to be completed in the next 15 months.

Through Eco Namibia, the company currently holds a 70% participating interest in the Sharon Block.

Following the closing of the transaction set out in the agreement, the company will hold a 60% participating interest in the Sharon Block and maintain Operatorship. Namcor has a 10% carried interest.

TRANSFER

The company has agreed to transfer an additional 12,5% participating interest in Block 2012A offshore Namibia to Azinam in exchange for US$3,5 million.

Through Eco Namibia, the company currently holds a 45% participating interest in the Cooper Block.

Following the closing of the transaction set out in the agreement, the company will hold a 32,5% carried interest in the Cooper Block Azinam will hold 32,5% Tullow Oil holds a 25% working interest and Namcor has a 10% carried interest in the block.

The closing of the transaction set out in the agreement is subject to regulatory approvals by the Ministry of Mines and Energy.

“We are delighted to have the opportunity to enter this transaction with our long time strategic block partner, Azinam. With the significant reduction of our financial commitments on the blocks over the short to medium term on the one hand, and with earning meaningful cash contributions on the other, we are perfectly positioned to further progress our offshore licences in Namibia together with our partners Azinam and Tullow Oil, and explore additional opportunities,” said Gil Holzman, CEO of Eco Atlantic.

Source : The Namibian