SOUTH AFRICA: Eco Atlantic Receives Government Approval for 6.25% Farm Out of Block 3B/4B to Africa Oil

Eco (Atlantic) Oil & Gas has announced that its wholly owned subsidiary, Azinam Limited, has received final government approval for the farm out of its 6.25% Participating Interest in Block 3B/4B to Africa Oil Corp. announced on 11 July 2023.

The South Africa Department of Mineral Resources and Energy (DMRE) and the Petroleum Agency South Africa (PASA) have now provided Section 11 approval to assign and transfer a 6.25% Participating Interest in Block 3B/4B, offshore South Africa to Africa Oil SA Corp, a wholly owned subsidiary of Africa Oil.  The Section 11 approval was the final consent required in order to complete the Transaction, and accordingly all requisite regulatory approvals and deeds in respect of the Transaction have now been signed and completed.

As per the terms of the Assignment and Transfer Agreement with Africa Oil, Eco has received further payment of US$2.5m from Africa Oil. Under the terms of the Agreement, upon a further farm out to a third party into Block 3B/4B Eco will receive a further payment of US$4m from Africa Oil and when the first well is spud an additional US$1.5m, will be due to the Company from Africa Oil.