Africa Oil acquisition of further 6.25% interest in Block 3B/4B, offshore South Africa

On July 11, 2023, Africa Oil Corp. ("Africa Oil") announced that it entered an agreement to increase its operated working interest in Block 3B/4B, which covers an area of 17,581 km² within the Orange Basin offshore of the Republic of South Africa and on trend with the Venus, Graff, La Rona and Jonker oil discoveries.

Africa Oil signed a legally binding Letter of Intent with Azinam Limited ("Azinam"), a wholly owned subsidiary of Eco (Atlantic) Oil & Gas Ltd. ("Eco"), to acquire a further 6.25% interest for a total cash consideration of US$10.5 million, to be paid in tranches on the following milestones:

• US$2.5 million within 30 days after the signing of the LOI;
• US$2.5 million upon the government's approval for the transfer of the 6.25% to Africa Oil;
• US$4 million upon the completion of a farm-out deal to a third party; and
• US$1.5 million upon spudding of the first exploration well on the block.

Further information can be found on Canada Newswire’s website.

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.