Eco Atlantic Wraps-Up Block 3B/4B Acquisition in South Africa

Tuesday, December 20, 2022

Eco Atlantic’s wholly owned subsidiary Azinam Limited has finalized the deal which sees it gain an additional 6.25% Participating Interest in Block 3B/4B, offshore South Africa from the Lunn Family Trust, one of the shareholders of Ricocure (Proprietary) Limited. Eco has now received the requisite regulatory approvals from the Department of Mineral Resources and Energy (DMRE) of South Africa and the Petroleum Agency of South Africa (PASA) in respect of the acquisition, which was the final condition in respect of completion.

Accordingly, Eco Atlantic, through Azinam, will now close the Acquisition and hold an increased Participating Interest of 26.25% in Block 3B/4B, with Africa Oil Corp., the Operator of the block, holding a 20% Participating Interest, and Ricocure, holding the remaining 53.75% Participating Interest.

In accordance with the completion consideration outlined in Eco’s announcement on June 27, 2022, the company will now:

pay a cash amount of $500,000 to the Vendor;
issue to the Vendor new Common Shares at the agreed price of 30p (CAD$0.48) having an aggregate value of $500,000
issue to the Vendor new Common Shares at the agreed price of 30p (CAD$0.48) having an aggregate value of US$3 million, which will be subject to special lock up restrictions
issue to the Vendor new Common Shares at the agreed price of 30p (CAD$0.48) having an aggregate value of US$2 million; and
issue to the Vendor, new Common Shares equal to US$2 million divided by the greater of (i) the value of the 30 day VWAP per Common Share prior to the date of the press release announcing the issue of such Common Shares; and (ii) the lowest issuance price then allowed by the rules of the TSXV and AIM (to the extent then listed on such markets, otherwise the average (if listed on more than one market) on such markets as the Common Shares are then listed). This shall be subject to obtaining prior TSXV approval in the event that such issue of Common Shares would cause the Vendor to own more than 9.99% of the issued and outstanding Common Shares (calculated at the time of issuance).

Gil Holzman, President and Chief Executive Officer of Eco Atlantic, commented: “We are extremely pleased to have received the South African authorities’ final approval and to be increasing our interest in Block 3B/4B to 26.25%. The Block looks to be a very exciting license for all the partners involved. Recently completing a full reprocessing of the 3D data on the Block, we are upbeat about the prospectivity of the license and following the significant oil discoveries, Venus & Graff, made earlier in the year offshore Namibia Orange Basin, and we are pleased to be strengthening our working relationship with Ricocure and Africa Oil Corp.

“We are seeing growing industry interest in the entire Orange Basin, and in particular in Block 3B/4B, and as announced last month, a collaborative farm out process (of up to a 55% working interest) is underway. In the past six months, we have worked very closely with our partners to identify and determine the Block drilling prospects for a drilling campaign we are contemplating for next year.”

The full release with Lock Up Arrangements can be found here.

« GO BACK

Petroleum Africa

Eco Atlantic Wraps-Up Block 3B/4B Acquisition in South Africa

Petroleum Africa On-The-Go

Eco Atlantic Wraps-Up Block 3B/4B Acquisition in South Africa

You may also like

First LNG Realized at the Greater Tortue Ahmeyim Project

United Energy Acquires Western Desert Producer APEX

Baker Hughes Announces Major Gas Technology Orders for Venture Global LNG

ReconAfrica: Naingopo Results Demonstrate a Working Petroleum System

Tullow Highlights 2025 Operational Plans in Ghana

TotalEnergies to Supply 1.5 TWh to STMicroelectronics in France Over 15 years

Rockhopper Reaches Final Settlement with United on Egypt’s Abu Sennan Concession

Oil & Gas Crucial for African Growth: AEC Calls for Industry Support to Defend African Market

Petroleum Africa On-The-Go