Eco (Atlantic) Oil and Gas said it is continuing to see strong interest in acreage positions in South Africa’s Orange Basin, the Walvis Basin, Namibia, and the Guyana Suriname Basin.
Last month, Eco farmed out a 6.25% stake in its South Africa acreage to partner Africa Oil for US$10.5mln
Gil Holzman, chief executive, said: “The agreed transfer of a portion of our WI on Block 3B/4B to our strategic alliance partner Africa Oil will strengthen the JV position amid our continued negotiations with third parties to farm into the Block and execute a drilling campaign targeted for 2024.
"The proceeds from this agreement give us the opportunity to fund other growth opportunities elsewhere in the portfolio with no shareholder dilution.
" Also, at 3B/4B, we applied for Environmental Authorisation to undertake further drilling exploration activities as we believe that the licence holds significant potential to be explored by the Joint Venture partnership in South Africa.
"Namibia continues to produce globally significant hydrocarbon discoveries, and as a sizeable licence holder in the region, Eco continues to benefit from heightened levels of industry interest in the area.
Losses for the year to end March 2023 jumped to US$36.5mln (US$6.7mln) as operating costs rose to US$33mln from US$1.9mln with exploration work stepping up.
At the end of July 2023, Eco had cash and equivalents of US$6.4mln.