Photo: Illustration; Source: Eco Atlantic

Eco Atlantic lands reissued licences offshore Namibia

Oil firm Eco Atlantic Oil & Gas has successfully negotiated the reissuance of its four licences in the Walvis Basin offshore Namibia conditional to customary final government signature.

Eco Atlantic said on Monday that it agreed to terms and conditions and was the four new petroleum exploration licenses (PELs) on its existing offshore blocks, leading to the expansion of its acreage position.

Source: Eco Atlantic
Source: Eco Atlantic

The company negotiated the reissuance and establishment of a new ten-year life cycle for each of the four PEL’s. Each license has the participation of a standard 10 per cent working interest with Namibia’s National Petroleum Corporation NAMCOR and in a 5 per cent interest with local Namibian business partners on each block. Azinam Group also participates in a minority capacity on the Cooper, Sharon and Guy Blocks.

With the establishment of the new PEL’s, the company has doubled the size of its Guy block acreage, increasing the potential for new prospective targets in the deeper horizon to the West of the block. The new PELs cover approximately 28,593 square kilometres, with over 2.362 billion boe of prospective P50 resources.

Gil Holzman, president and CEO of Eco Atlantic, said: “Successfully renegotiating our four licences offshore Namibia and being awarded over 28,500 square kilometres in one of the most exciting exploration hotspots in the world is a significant milestone for Eco Atlantic.

Eco Atlantic made a significant investment in these offshore blocks in the Walvis Basin to date and we have been able to increase our already substantial footprint – now the second largest after ExxonMobil – in a highly prospective region that has attracted the interest of a number of the major IOCs.

The recent wildcat discoveries in South Africa and the entry into Namibia by ExxonMobil, Total, Qatar Petroleum, and Shell over the last few years give us significant confidence that further discoveries will soon be made in Namibia.

Near term, we look forward to drilling campaigns planned by Total, Shell, and ExxonMobil. These companies are amongst the leading oil finders in the world. The new licenses represent a strategic value creation opportunity for Eco Atlantic, amid the increased interest in the area“.

Colin Kinley, COO of Eco Atlantic, added: “The new exploration life cycle which we have and our well thought out exploration and de-risking strategy supports both our stakeholders and the people of Namibia.

Like Namibia, in Guyana, our path remains unaltered. We defined the opportunity, negotiated the Orinduik licence and brought in material partners for both their technical and economic contribution and we have carefully maintained our independence and ability to drive through to drilling without being anchored by partners budget or ambitions.

We very much appreciate the support of the Namibian Ministry of Mines and Energy and our partners and we look forward to keeping all our stakeholders apprised of developments over the coming months“.