Eco (Atlantic) Oil & Gas Ltd. will farm in to Block 1 Offshore South Africa Orange basin on the Namibian border.
Through its 100% owned subsidiary Azinam South Africa Ltd., the company will acquire a 75% working interest from Tosaco Energy (Proprietary) Ltd. and will become operator. Tosaco intends to transfer its remaining 25% interest to OrangeBasin Oil and Gas (Proprietary) Ltd., a newly formed South African entity.
The triangular-shaped block covers 19,929 sq km. The eastern side of the block is about 174 km off the South African shoreline, and the block reaches out about 263 km west into deep water in Orange basin.
The block has significant 2D and 3D seismic data already completed and no additional seismic acquisition or drilling of wells is planned in the 3-year carried period. During this period, Eco will complete the interpretation and analysis required for its planned work program with its in-house exploration team. The farm-in is subject to normal governmental approvals and no field activity is currently planned that requires environmental permitting.
Eco Atlantic will relinquish its operated offshore Block 2B (50%) in South Africa where it drilled the Gazania-1 dry hole (OGJ Online, Nov. 18, 2022). The company has completed all necessary documentation and environmental audits and has informed the Petroleum Agency of South Africa (PASA). Eco's board considers Block 2B a non-core asset in the portfolio given the company's interests in Namibia, Block 3B/4B and Block 1 in South Africa, and in Guyana. Following acceptance by the PASA of this relinquishment, the company will have no further liability in respect of Block 2B.
