EOG Eco Atlantic Oil and Gas Ltd

TORONTO, Dec. 22, 2011 /CNW/ - ECO (ATLANTIC) OIL AND GAS LTD. Eco (Atlantic) Oil & Gas Ltd. ("Eco Atlantic" or the "Company") is pleased to announce that it has entered into an agreement with Azimuth Ltd. ("Azimuth"), an exploration and production company jointly owned by Seacrest Capital Ltd. and Petroleum Geo-Services ASA ("PGS"). Azimuth has subscribed for C$3 million of the Company's private placement announced December 9, 2011 and will also farm-in to Eco Atlantic's offshore Namibia license blocks. Pursuant to the agreement, Azimuth will acquire a 20% working interest in each of Eco Atlantic's offshore Namibia licenses, namely the "Cooper License" (Block 2012A), the "Sharon License" (Blocks 2213A & 2213B) and the "Guy License" (Blocks 2111B & 2211A) (jointly, the "Licenses") in return for funding 40% of the cost of 3D seismic surveys covering 2,500 square kilometers across all three Licenses, the acquisition of which is expected to cost in excess of US$25 million. The assignment of a 20% working interest in the Licenses to Azimuth is subject to a number of conditions, including the approval of Namibia's Ministry of Mines and Energy and the completion of a definitive farm-in agreement. Eco Atlantic currently holds a 90% working interest in the Licenses through its wholly owned subsidiary Eco Oil and Gas Namibia (PTY) Ltd. ("Eco Namibia") and NAMCOR, the Namibian national oil and gas company, holds a 10% working interest. As a result of this transaction, Eco Namibia's interest will be 70%, Azimuth will own a 20% interest, and NAMCOR will retain its 10% interest. Eco Atlantic, through the project management group of Kinley Exploration and Azimuth will be responsible for designing, sourcing and operating all aspects of the 3D seismic program. GMP Securities Europe LLP is acting as sole financial advisor to Eco Atlantic in this transaction. Gil Holzman, President and Chief Executive Officer of Eco Atlantic commented, "Eco Atlantic is very fortunate to have the opportunity to jointly work with Azimuth as an equity, license and technical partner. Despite the challenging global markets, Eco Atlantic has once again displayed in a very short time its ability to execute transactions adding significant shareholder value by partnering with a group that has a significant amount of technical experience offshore West Coast Africa. This partnership will enhance the technical ability brought to analyze the licenses, thereby reducing the execution risk and strengthening the Company's technical and financial ability to perform its offshore Namibia state of the art exploration program. In addition, Azimuth's significant participation in the private placement complementing additional participation in the current raise demonstrates their commitment and confidence in the prospectivity of the Company's assets." Aaron D'Este, Managing Director of Azimuth, commented, "We are delighted to enter into partnership with Eco Atlantic.  Namibia is an exciting and promising petroleum province and Eco Atlantic's portfolio of offshore acreage spans three distinct environments, each with excellent prospectivity.  Our new working interest in Eco Atlantic's Licenses will complement Azimuth's existing positions in the Adriatic, Benin and Ghana, and we look forward to working with the Eco Atlantic team to rapidly develop a suite of robust drilling targets underpinned by 3D seismic." 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, Eco Namibia, it holds five petroleum licenses issued by the Government of the Republic of Namibia. Eco Namibia holds three offshore license blocks covering more than 25,000 square kilometers (6,177,000 acres). Eco Namibia also holds two onshore 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 in 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. About Azimuth Azimuth Limited is a specialist E&P company based in Hamilton, Bermuda.  The business is backed by majority-owner Seacrest Capital Ltd, a Bermuda based energy investment group, and Petroleum Geo-Services ASA (PGS).  Azimuth leverages the strength of its shareholders to acquire interests in prospective acreage worldwide, developing 'drill-ready' targets through robust geophysical and commercial analysis.  Funding from Seacrest fuels Azimuth's global activities and ensures that the company is ready to advance its properties without delay.  A collaboration agreement with PGS gives Azimuth unparalleled insight into petroleum basins worldwide, including access to the world's largest multiclient seismic library, to leading edge geophysical expertise and to 85 subsurface specialists distributed in key locations around the world. With four attractive assets already in hand, Azimuth Ltd is a well-funded, rapidly-growing exploration company equipped with the technical capabilities of a mid-cap E&P firm. Azimuth's management team is led by Aaron D'Este. 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: For More Information on Eco Atlantic ContactGil Holzman Julia MaxwellPresident and Chief Executive Officer Manager, Investor Relationsgil@ecooilandgas.com jmaxwell@ecooilandgas.comTel: +972.508 884529 Tel: +1.416.361.2211

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