AIM-listed and Canada-headquartered oil and gas company Eco (Atlantic) Oil & Gas has completed the transaction with compatriot Africa Oil Corp. enabling the latter’s subsidiary to increase its stake in a block offshore South Africa.
As announced in July, Azinam Limited, Eco’s wholly owned subsidiary, agreed to sell and assign a 1% participating interest in Block 3B/4B offshore South Africa, including the associated exploration right and joint operating agreement rights, to Africa Oil’s subsidiary Africa Oil SA Corp. (AOSAC). In exchange, all of Africa Oil’s shares and warrants in Eco will be canceled.
Since all conditions precedent relating to the transaction have been satisfied, including the approval from the Government of the Republic of South Africa, Eco has confirmed that the transaction is now complete. As a result, Eco holds a fully carried 5.25% interest in Block 3B/4B, down from 6.25%.
The block is located between 120 and 250 kilometers offshore western South Africa. Covering an area of 17,581 square kilometers, the block lies in water depths ranging from 300 to 2500 meters.
“We are pleased to have received approval from the South Africa Government regarding Eco’s transaction with Africa oil. This is an important milestone towards JV partners’ drilling plans on the Block in 2025,” noted Gil Holzman , Co-Founder and Chief Executive Officer (CEO) of Eco Atlantic.
“The transaction not only strengthens Eco’s balance sheet on a per-share basis but also creates significant shareholder value through a material reduction in the Company’s share count. We look forward to continuing our longstanding relationship and collaboration with Africa Oil as we remain focused on maximising value for shareholders across our portfolio.”
Furthermore, since Africa Oil is no longer a shareholder in the company, its representative, Oliver Quinn , stepped down from Eco’s board of directors, and Emily Ferguson was appointed Non-Executive Director.
Ferguson has 22 years of experience in the oil and gas industry, spanning technical, commercial, and senior leadership roles. Most recently, she served as VP of Exploration for Europe, the Middle East, North Africa, and Asia at TotalEnergies. Before joining the French major, she worked at Maersk Oil. Ferguson holds a BSc in Geology and Petroleum Geology and an MSc in Petroleum Geology from the University of Aberdeen, Scotland.
Two energy giants, TotalEnergies and QatarEnergy acquired participating interests in Block 3B/4B, with TotalEnergies taking over the operatorship from Africa Oil, at the end of August 2024 . The deal was completed six months after it was initially announced .
At the time, TotalEnergies held a 33% interest, QatarEnergy 24%, AOSAC 17%, Azinam Limited 6.25%, and Ricocure (Proprietary) Limited a 19.75% interest.