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Press Release
Eco (Atlantic) Oil & Gas Ltd. acquire Azinam Group Limited
Published 11th January 2022
Eco (Atlantic) Oil & Gas Ltd., the oil and gas exploration company focused on the offshore Atlantic Margins, has announced that it has signed a Memorandum of Understanding (“MOU”) to acquire 100% of Azinam Group Limited, including Azinam's entire offshore asset portfolio, in return for a 16.65% equity stake in the enlarged Group on completion of the Acquisition.
Highlights:
- Acquisition of a material offshore petroleum exploration asset base in Namibia and South Africa
- Consideration in the form of new common shares to Azinam Holdings Limited (the “Vendor”) who will own 16.65% of the enlarged Group
- The Vendor will also be issued warrants in the Company, exercisable only upon a producible commercial discovery
- The transaction strengthens the Groups strategic partnership with Africa Energy and Africa Oil
- Clear drilling programme with an exploration well planned to be drilled on Block 2B – South Africa in H2 2022
- The deal is expected to complete by 31 January 2022 subject, inter alia, to the signing of a Share Purchase Agreement and satisfactory completion of due diligence by Eco and any requisite approvals
- Discussions are already underway with Eco's key existing stakeholders in relation to underwriting the funds required to participate directly in the 2022 Block 2B South Africa drilling programme.
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…
About Eco Atlantic
Eco Atlantic is a TSX-V and AIM quoted E&P company with interests in five offshore blocks in Guyana and Namibia.
Eco aims to deliver material value for its stakeholders through oil exploration, appraisal and development activities, in partnership with major oil companies e.g. Tullow Oil, Total, Qatar Petroleum, Namcor and Azinam.
In Guyana, Eco holds a 15% Working Interest alongside Total (25%) and Operator Tullow Oil (60%) in the 1,800km2 Orinduik Block in the shallow water (70m – 1400m) of the prospective Suriname-Guyana basin. The Orinduik Block is adjacent and updip to ExxonMobil Operated Stabroek Block, on which eighteen discoveries have been made and an estimated 9 Billion BOE of oil equivalent recoverable resources discovered. Oil production commenced in December 2019 from the deep-water Liza Field, less than three years from FID.
Eco and partners made two oil discoveries in 2019 on the Orinduik Block: Jethro-1 was the first major oil discovery on the Orinduik Block. Jethro-1 encountered 180.5 feet (55 meters) of net high-quality oil pay in the Lower Tertiary sandstone reservoirs. Joe-1, was the second discovery, encountered 52 feet (16 meters) of continuous thick sandstone in the Upper Tertiary which further proves the presence of recoverable oil resources.
