Eco Atlantic Announces Farm-out of Onshore Blocks in the Karoo and Huab Basins, Namibia
December 07 2011 - 9:13AM
PR Newswire (Canada)
VANCOUVER, Dec. 8, 2011 /CNW/ - Eco (Atlantic) Oil and Gas Ltd.
("Eco Atlantic" or the "Company") is pleased to announce that its
wholly-owned subsidiary, Eco Oil and Gas (Namibia) (Pty) Limited
("Eco Namibia"), has entered into a Farm-out Agreement with West
Bay Investments, Ltd. ("West Bay"), a Belize corporation focused on
the exploration and development of unconventional onshore
hydrocarbon projects in sub Saharan Africa. West Bay will farm into
both of Eco Namibia's onshore license blocks. Eco Namibia is a
party to two separate Coal Bed Methane ("CBM") Agreements: one CBM
Agreement covers Blocks 2013B, 2014B and 2114 and the other covers
Block 2418. Pursuant to the Agreement, West Bay, or a subsidiary of
West Bay, will acquire a 50% working interest in the onshore
portion of each of the following Blocks in Namibia: CBM Blocks
2013B (excluding the Western section which extends offshore),
2014B, 2114 and 2418 (the "Licenses"). The assignment of a 50%
working interest in the Licenses to West Bay is subject to the
approval of the Namibia Ministry of Mines and Energy. Before taking
into account the recent transaction with West Bay, Eco Namibia held
90% working interest in the Licenses and NAMCOR, the Namibian state
controlled oil and gas company, held 10% working interest. As a
result of the transaction, Eco Namibia's interest will be reduced
from 90% to 40%, West Bay will have 50%, and NAMCOR retains 10%.
West Bay will assume Eco's obligation to carry the NAMCOR 10%
working interest, and will pay Eco $400,000 for past expenses. Of
Eco Namibia's 40% interest, one-half will be on a free carry basis
at the sole cost and expense of West Bay through all phases of
exploration, production and development under each CBM Agreement
and the other half will be full working interest. Eco Atlantic and
Kinley Exploration will be joint operators. Gil Holzman, President
and Chief Executive Officer of Eco Atlantic commented, "Eco
Atlantic conducted a very discerning license application process in
selecting its onshore blocks, which has been validated now through
the farm-in of West Bay, a group who has many years of
unconventional gas exploration experience in Sub Sahara Africa and
elsewhere, and a significant track record of success in the
industry. By bringing in a partner with the technical and financial
capability the likes of West Bay, Eco Atlantic displays its long
standing commitment to Namibia, and its ability to identify and
attract professional, global industry participants. Farming
out part of our onshore licenses will enable Eco to focus and
enhance the exploration program of our highly prospective off shore
oil licenses in Walvis Basin, Namibia." Steve Looper, Chief
Executive Officer of West Bay, commented, "We are very happy to
have signed this Farm-in Agreement with Eco Atlantic. Our technical
team has an excellent understanding of unlocking the potential of
unconventional gas in the Sub-Sahara. Namibia in particular is an
open frontier of opportunity to develop unconventional gas
resources. We appreciate the opportunity to work with the Namibian
Government and to use our expertise to unlock this new and
important resource for them." Corporate Update Eco Atlantic
announced today that it has appointed Alan Friedman to its Board of
Directors Mr. Friedman has over 10 years' experience in the
acquisition, development and M&A of resource assets, financings
and numerous going-public transactions onto the TSX. He is
currently a Director and co-founder of both Auryx Gold Ltd. , a
gold exploration company with assets in Namibia, which recently,
conditionally concluded a business transaction with B2 Gold Corp;
and Adira Energy Ltd. , an oil and gas exploration company with
assets offshore Israel. Mr. Friedman also sits on the Board of
Directors of the Canada- Southern Africa Chamber of Business. About
Eco Atlantic Eco Atlantic is an oil and gas exploration company
focused on the new and bourgeoning energy play in Namibia. Through
its wholly owned Namibian subsidiary, it holds five petroleum
licenses issued by the Government of the Republic of Namibia.
Offshore, Eco Namibia holds three license blocks covering more than
25,000 square kilometers (6,177,000 acres). Onshore, Eco Namibia
holds two license blocks covering 30,000 square kilometers
(7,413,000 acres). Eco Namibia, founded in 2008, enjoys a
strong local presence, and has a longstanding relationship with the
energy and oil and gas sector in Namibia and the region. The terms
and conditions of these licenses are regulated by agreements signed
by Eco with the Government of the Republic of Namibia in March
2011. Forward Looking Statements CAUTIONARY NOTE REGARDING FORWARD
LOOKING STATEMENTS: Certain information in this press release
constitutes forward-looking statements under applicable securities
law. Any statements that are contained in this press release that
are not statements of historical fact may be deemed to be
forward-looking statements. Forward-looking statements are often
identified by terms such as "may", "should", "anticipate",
"expects" and similar expressions. Forward-looking statements
necessarily involve known and unknown risks, including, without
limitation, risks associated with oil and gas production and
exploration, marketing and transportation; loss of markets;
volatility of commodity prices; currency and interest rate
fluctuations; imprecision of reserve estimates; environmental
risks; competition; inability to access sufficient capital from
internal and external sources; changes in legislation, including
but not limited to income tax, environmental laws and regulatory
matters. Readers are cautioned that the foregoing list of factors
is not exhaustive. Although Eco Atlantic believes in light of the
experience of its officers and directors, current conditions and
expected future developments and other factors that have been
considered appropriate that the expectations reflected in this
forward-looking information are reasonable, undue reliance should
not be placed on them because Eco Atlantic can give no assurance
that they will prove to be correct. The forward-looking statements
contained in this press release are made as of the date hereof and
Eco Atlantic undertakes no obligation to update publicly or revise
any forward- looking statements or information, whether as a result
of new information, future events or otherwise, unless so required
by applicable securities laws. Neither the TSX Venture Exchange nor
its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this press release. Eco Oil & Gas
(Atlantic) Ltd. CONTACT: Gil Holzman Julia MaxwellPresident and
Chief Executive Manager, Investor RelationsOfficer
jmaxwell@ecooilandgas.comgil@ecooilandgas.com Tel: 416.276.3171Tel:
972.508884529
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