Toronto, Ontario December 8, 2011/ CNW ECO (ATLANTIC) OIL AND GAS LTD. (TSX-V: EOG. 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.”
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. (TSX-V:AYX), a gold exploration company with assets in Namibia, which recently, conditionally concluded a business transaction with B2 Gold Corp; and Adira Energy Ltd. (TSX-V:ADL), 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.
For More Information on Eco Atlantic Contact
President and Chief Executive Officer
Manager, Investor Relations