Africa Oil exchange for additional 1% interest in Block 3B/4B, offshore South Africa

On July 25, 2024, Eco (Atlantic) Oil & Gas Ltd. (“Eco”) announced the signing of an Assignment and Share Cancellation Agreement with Azinam Limited ("Azinam"), Eco's wholly owned subsidiary, Africa Oil Corp. ("Africa Oil") and Africa Oil SA Corp ("AOSAC").

Under the terms of the agreement, Azinam agreed to sell and assign a 1% participating interest in Block 3B/4B offshore the Republic of South Africa, including the associated Exploration Right and Joint Operating Agreement rights, to AOSAC in exchange for the cancellation of all common shares and warrants over common shares in Eco held by Africa Oil. No additional rights in the rest of Eco's portfolio assets in Guyana, Namibia and South Africa are part of the Agreement.

Africa Oil currently holds, in aggregate, 54,941,744 common shares and 4,864,865 warrants, which, assuming conversion of the warrants, would equal 16.16% on a diluted basis (c.15% non-diluted) of the total outstanding common shares of Eco worth approximately C$11 million.

Upon completion of the exchange transaction, Azinam will assign the 1% participating interest and associated agreement rights to AOSAC and in return Africa Oil will transfer its securities in Eco for immediate cancellation. Once assigned, Eco will hold a fully carried 5.25% interest in Block 3B/4B Offshore South Africa, reduced from the current 6.25%. Additionally, upon completion, Africa Oil will hold a combined 27.25% interest in Block 3B/4B and no longer be a shareholder in Eco or have the right to appoint a director to Eco's Board of Directors.

Block 3B/4B, located in the Deep Orange Basin between 120-250 km offshore western South Africa, covers an area of 17,581 square km in water depths ranging from 300 to 2,500 m. The Block is located along-trend of an emerging Mid-Cretaceous oil play where operators are planning to drill several key exploratory wells that have the potential to be play-openers for a world-class petroleum province.

Completion of the transaction is conditional on receipt of all requisite regulatory approvals from the South African Government, TSX Venture Exchange ("TSXV"), applicable Canadian Securities Commissions, and the relevant approvals from the Block 3B/4B Joint Venture Partners,

Further information can be found on Accesswire’s website.

Eco Atlantic is an Atlantic Margin-focused oil and gas exploration company with offshore license interests in Guyana, Namibia, and South Africa.

Africa Oil is a Canadian oil and gas company with producing and development assets in deepwater Nigeria and an exploration/appraisal portfolio in west and south of Africa, as well as Guyana.

Azinam is a south west African-focused oil & gas exploration company, formerly backed by Seacrest Capital. As of March 11, 2022, Azinam Group Limited operates as a subsidiary of Eco (Atlantic) Oil & Gas Ltd.