Eco (Atlantic) Oil & Gas (CVE:EOG) has received various approvals from the Namibia Ministry of Mines and Energy relating to the Cooper (PEL 030), Guy (PEL 034) and Sharon (PEL 033) licences in offshore Namibia, the company said on Wednesday.
The approvals were the result of Eco Atlantic meeting and exceeding its exploration work obligations, the company said.
Cooper block (PEL 030)
In recognition of the company and its partners, Tullow Kudu Ltd., AziNam and Namcor (Namibia National Petroleum Corp.), having met and exceeded all obligations of the initial exploration period as stipulated in the petroleum agreement in block 2012A, the ministry has approved the entering into the next phase of the licence.
The Cooper block licence was extended into the first renewal phase until March 14, 2018. The second renewal phase is until March, 2020.
In further recognition of the advancement of the exploration progress made on the Cooper block, including over 1,000 square kilometres of 3-D survey, the ministry has waived the relinquishment requirement (as stipulated in the petroleum agreement), and the block partners will continue the exploration work on the entire block area.
Eco Atlantic currently holds 32.5% carried interest in the Cooper block and is operator; AziNam holds 32.5 per cent; Tullow Kudu holds a 25% working interest, and Namcor has a 10% carried interest in the block.
Sharon block (PEL 033)
In recognition of the company and its partners, AziNam and Namcor, having met and exceeded all exploration work obligations of the initial exploration period as stipulated in the petroleum agreement in blocks 2213 A and B in offshore Namibia, the ministry has approved the entering into the next phase of the licence.
The Sharon block licence has been extended into the first renewal phase until March 14, 2018, and the completion of any 3-D obligations will be extended to such date. The second renewal phase is until March, 2020.
The ministry furthermore approved the company's request to terminate 50% of its licensing obligation corresponding with the relinquishment of 50% of the acreage in the licence which was required in terms of the petroleum agreement. This relinquishment pertains to the eastern half of the Sharon block. The company considers this shallow section non-prospective.
Eco Atlantic holds a 60% participating interest in the Sharon block and is operator. AziNam holds 30%, and Namcor has a 10% carried interest.
Guy block (PEL 034)
In recognition of the company and its partners, AziNam and Namcor, having met and exceeded all exploration work obligations of the initial exploration period as stipulated in the petroleum agreement in blocks 2111B and 2211A in offshore Namibia, including the shooting of over 1,000 kilometres of new 2-D lines and over 850 square kilometres of 3-D survey, the ministry has approved the entering into the next phase of the licence.
The Guy block licence has been extended into the first renewal phase until March 14, 2018. The second renewal phase is until March, 2020.
In the same way as with Sharon block, the ministry furthermore approved the company's request to terminate 50% of its licensing obligation corresponding with the relinquishment of 50% of the acreage in the licence which was required in terms of the petroleum act.
This relinquishment pertains to the western portion of the Guy block in the ultradeep section that the company and its operating partner, AziNam, consider non-prospective.
The company currently holds a 50% participating interest in the Guy block, AziNam holds 40% and is operator, and Namcor has a 10% carried interest.
"Despite the constrained market conditions, and through efficient management of capital together with our valued partners, Tullow Kudu, AziNam and Namcor, our continuing financial and operational commitment to Namibia's petroleum industry has been recognised by the government by granting us the approvals to enter next exploration phase on all three blocks and waiving the relinquishment requirement on the Cooper block," said Eco Atlantic chief executive officer Gil Holzman.