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AziNam snaps up more interest offshore Namibia

05th August 2014

Eco (Atlantic) Oil & Gas has announced that it has accepted an offer from Azimuth Namibia Ltd. (AziNam), to increase AziNam’s interest in Blocks 2111B and 2211A, offshore Namibia (Guy Block) by an additional 10 per cent

AziNam snaps up more interest offshore Namibia
Upon the completion of the transaction, AziNam will be responsible for 51 per cent of the costs for the 1,000 sqaure kilometre 3D survey, further reducing Eco Atlantic’s financial obligation on the Guy Block

As a result of this transfer, AziNam will bear an additional 10 per cent of the operating costs on the Guy Block as well as carry 10 per cent of Namcor’s interest.

“We are very pleased to enter into this agreement with AziNam, our long-standing partner on our offshore Namibian blocks,” said Gil Holzman, president and CEO of Eco Atlantic. “AziNam brings vast geological and geophysical experience and a profound regional understanding to the partnership, as well as the ability to finance its portion of the exploration programme.”

Upon the completion of the transaction, AziNam will be responsible for 51 per cent of the costs for the 1,000 sqaure kilometre 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.

“We welcome AziNam’s decision to increase its working interest in the Guy Block by 10 per cent 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 per cent working interest in the Guy Block, AziNam holds a 20 per cent working interest, and Namcor holds a 10 per cent working interest. Following the transfer, the company will hold a 60 per cent working interest (with an obligation to fund 49 per cent of the 3D seismic survey), AziNam will hold a 30 per cent interest (with an obligation to fund 51 per cent of the 3D seismic survey), and Namcor will retain its 10 per cent carried interest.

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