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TORONTO, ON / ACCESSWIRE / August 28, 2024 / Eco (Atlantic) Oil & Gas Ltd. (AIM:ECO)(TSX‐V:EOG), the oil and gas exploration company focused on the offshore Atlantic Margins in South Africa, Namibia, and Guyana, is pleased to announce completion of a farm down of a 13.75% Participating Interest in Block 3B/4B offshore the Republic of South Africa ("the Block") and Transfer of Operatorship of the Block after receipt of the requisite regulatory approvals (Section 11) from the government of South Africa ("Completion"). Eco now holds a 6.25% interest in Block 3B/4B.
Further to the Company's announcement on 6 March 2024 detailing the Farmout Agreement ("FOA"), Azinam Limited ("Azinam"), Eco's wholly owned subsidiary, has farmed down a 13.75% Participating Interest in Block 3B/4B, offshore the Republic of South Africa as part of an aggregate 57% farm down transaction along with its Joint Venture ("JV") Partners Africa Oil SA Corp. ("Africa Oil") and Ricocure (Proprietary) Limited ("Ricocure") to TotalEnergies EP South Africa S.A.S., who will become Operator ("TotalEnergies") and QatarEnergy International E&P LLC ("QatarEnergy") (the "Transaction").
Pursuant to the terms of the FOA, following Completion Eco is now due to receive US$8.3million in total as part of the 3B/4B Transaction, including Completion linked milestone payments of US$4m from Africa Oil and US$1.56m from Ricocure, as referred to in the Company's announcement of 6 March 2024. Further payments, amounting to $11.5m will be payable to Eco from TotalEnergies, QatarEnergy and Africa Oil on spudding of the first exploration well.
Following Completion, TotalEnergies is now the Operator of the Block, holding a 33% Participating Interest; QatarEnergy International E&P LLC, holds a 24% Participating Interest; Africa Oil SA Corp, a wholly owned subsidiary of Africa Oil Corp. retains a 17% Participating Interest; Azinam Limited, a wholly owned subsidiary of Eco Atlantic, retains a Participating Interest of 6.25%; and Ricocure (Proprietary) Limited, retains a 19.75% Participating Interest.
Gil Holzman, Co-founder and Chief Executive Officer of Eco Atlantic, commented:
"I am grateful to the Eco team and our advisors for their support in completing this transaction. We look forward to continuing our strong working relationship with all the JV partners, the South African Government, and the new Operator TotalEnergies. Block 3B/4B sits in a prolific hydrocarbon jurisdiction and we are excited to continue preparations for first drilling on the block under the leadership of TotalEnergies.