ECO FARMS OUT ADDITIONAL INTEREST IN GUY BLOCKoronto – August 5th 2014 – Eco (Atlantic) Oil & Gas Ltd. (“Eco Atlantic” or the “Company”) (TSX-V:EOG, NSX:EOG) is pleased to announce that it has accepted an offer (the “
Agreement”) from Azimuth Namibia Ltd. (“
AziNam”), to increase AziNam’s interest in Blocks 2111B and 2211A, offshore Namibia (the “
Guy Block”) by an additional 10%. As a result of this transfer, AziNam will bear an additional 10% of the operating costs on the Guy Block as well as carry 10% of NAMCOR’s interest.
Upon the completion of the transaction, AziNam will be responsible for 51% of the costs for the 1,000km2 3D survey, further reducing Eco Atlantic’s financial obligation on the Guy Block. Eco Atlantic remains the Operator of the Guy Block. This transaction is subject to a number of conditions, including the approval of Namibia’s Ministry of Mines and Energy.
Gil Holzman, President and CEO of Eco Atlantic, comments: “We are very pleased to enter into this agreement with AziNam, our long-standing partner on our offshore Namibian blocks. AziNam brings vast G&G experience and a profound regional understanding to the partnership, as well as the ability to finance its portion of the exploration program. We welcome AziNam’s decision to increase its working interest in the Guy Block by 10% and to carry NAMCOR on that working interest portion. The Transaction enables us to reduce our financial risk and embark with the 3D seismic program as planned. Eco Atlantic’s recent farmout initiatives, including the recently disclosed transaction with Tullow in which our financial costs on the Cooper Block are now fully carried, reflects Eco Atlantic’s strategy of reducing financial exposure by attracting experienced, high quality industry partners. Our technical team is currently working on the logistics for the Guy and Cooper blocks and defining a plan for the Sharon Block in the upcoming weeks.”
Eco Atlantic currently holds a 70% working interest in the Guy Block, AziNam holds a 20% working interest, and NAMCOR holds a 10% working interest. Following the Transfer, the Company will hold a 60% working interest (with an obligation to fund 49% of the 3D seismic survey), AziNam will hold a 30% interest (with an obligation to fund 51% of the 3D seismic survey), and NAMCOR will retain its 10% carried interest.
SOURCE: [url=https://www.ecooilandgas.com/news/index.php?&content_id=83]https://www.ecooilandgas.com/news/index.php?&content_id=83[/url]
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