Eco (Atlantic) Oil & Gas Ltd (AIM:ECO, TSX-V:EOG) has completed a farm down of a 13.75% participating interest in Block 3B/4B offshore South Africa and is now due to receive US$8.3 million in total as part of the transaction.
Further payments, amounting to $11.5m will be payable to Eco from partners TotalEnergies, QatarEnergy and Africa Oil on spudding of the first exploration well.
Eco now holds a 6.25% interest in Block 3B/4B, TotalEnergies the operator a 33% interest; QatarEnergy 24%, Africa Oil 17% and Riocure 19.75%.
Gil Holzman, Eco Atlantic chief executive, commented: “We look forward to continuing our strong working relationship with all the JV partners, the South African Government, and the new Operator TotalEnergies. Block 3B/4B sits in a prolific hydrocarbon jurisdiction and we are excited to continue preparations for first drilling on the block under the leadership of TotalEnergies.
"Completion of the transaction further strengthens Eco's balance sheet and enables us to focus and continue progressing our wider work programmes and farm out processes in Eco's asset portfolio in Guyana and Namibia, with no shareholder dilution."