Eco Atlantic to buy offshore oil assets in Namibia, South Africa

 Eco Atlantic to buy offshore oil assets in Namibia, South Africa

Eco (Atlantic) Oil & Gas Ltd has signed an initial pact to acquire Azinam Group Ltd, including its offshore assets in Namibia and South Africa, through an all-stock transaction.

Azinam Group will get a 16.65% equity stake in the enlarged Eco Atlantic group as per the deal. The deal is likely to be completed by January 31, Eco Atlantic said.

Azinam Group is a wholly owned arm of Azinam Holdings, which is majority owned by Seacrest Capital Group.

Eco Atlantic is an oil and gas exploration company focused on the offshore Atlantic Margins in North America with license interests in Guyana, Namibia, and South Africa. It is listed on the junior markets of London and Toronto stock exchanges.

Gil Holzman, co-founder and CEO of Eco Atlantic, said the acquisition strengthens the company’s long-term and strategic position in Namibia. The deal will give the company 85% interest and operatorship in four highly prospective blocks, and gives it added versatility as it looks to partner with a major player to accelerate exploration activities in Namibia.

Holzman said that the acquisition requires no cash funding and that it is engaging in talks with its key stakeholders to underwrite the funds required to participate directly in 2022 South Africa drilling activity.

“We anticipate that our drilling in South Africa this year will be closely followed by an exploration well in Guyana,” he added.

In addition to the stock deal, the seller will be issued warrants over new common shares in Eco, exercisable only in case of a producible commercial discovery on certain existing assets.

As of September 30, 2021, Azinam had total assets of about $16 million. In the first nine months of 2021, it recorded net income of about $1.26 million.

Vivek Sinha

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