Toronto – August 5th 2014 – Eco (Atlantic) Oil & Gas Ltd. (“Eco Atlantic” or the “Company”) (TSX-V:EOG, NSX:EOG) is pleased to announce that it has accepted an offer (the “Agreement”) from Azimuth Namibia Ltd. (“AziNam”), to increase AziNam’s interest in Blocks 2111B and 2211A, offshore Namibia (the “Guy Block”) by an additional 10%. As a result of this transfer, AziNam will bear an additional 10% of the operating costs on the Guy Block as well as carry 10% of NAMCOR’s interest.
Upon the completion of the transaction, AziNam will be responsible for 51% of the costs for the 1,000km2 3D survey, further reducing Eco Atlantic’s financial obligation on the Guy Block. Eco Atlantic remains the Operator of the Guy Block. This transaction is subject to a number of conditions, including the approval of Namibia’s Ministry of Mines and Energy.
Gil Holzman, President and CEO of Eco Atlantic, comments: “We are very pleased to enter into this agreement with AziNam, our long-standing partner on our offshore Namibian blocks. AziNam brings vast G&G experience and a profound regional understanding to the partnership, as well as the ability to finance its portion of the exploration program. We welcome AziNam’s decision to increase its working interest in the Guy Block by 10% and to carry NAMCOR on that working interest portion. The Transaction enables us to reduce our financial risk and embark with the 3D seismic program as planned. Eco Atlantic’s recent farmout initiatives, including the recently disclosed transaction with Tullow in which our financial costs on the Cooper Block are now fully carried, reflects Eco Atlantic’s strategy of reducing financial exposure by attracting experienced, high quality industry partners. Our technical team is currently working on the logistics for the Guy and Cooper blocks and defining a plan for the Sharon Block in the upcoming weeks.”
Eco Atlantic currently holds a 70% working interest in the Guy Block, AziNam holds a 20% working interest, and NAMCOR holds a 10% working interest. Following the Transfer, the Company will hold a 60% working interest (with an obligation to fund 49% of the 3D seismic survey), AziNam will hold a 30% interest (with an obligation to fund 51% of the 3D seismic survey), and NAMCOR will retain its 10% carried interest.
About Eco Atlantic
Eco Atlantic is an oil and gas exploration company focused on unique upstream opportunities for low cost entry into technically merited prospective new and developing plays in frontier areas. Eco is currently a exploring the new and developing energy play in Namibia. Through a wholly owned Namibian subsidiary (“Eco Namibia”), it holds four petroleum licenses issued by the Government of the Republic of Namibia. Offshore in the Walvis Basin, Eco Atlantic holds three license blocks covering more than 25,000 square kilometers. Eco Atlantic holds an additional license block covering 23,000 square kilometers which includes both onshore and offshore areas. Founded in 2008, Eco Namibia enjoys a strong local presence and has a longstanding relationship with the energy and oil and gas sector in Namibia. and other maturing exploration plays in Africa.
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; retention of and ability to attract Company personnel, regulatory approvals, 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, 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.
For More Information on Eco Atlantic Contact:
President and Chief Executive Officer
Investor Relations Manager
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