Eco Atlantic Oil & Gas Ltd (LON:ECO, CVE:EOG) has agreed to increase its interest in the Tamar licence, offshore Namibia.
The company has struck a share-based deal to buy-out partner Amis Oil and Gas Ltd, agreeing to issue 300,000 Eco shares in return for its 10% shareholding in the Pan Africa Oil Namibia Holdings vehicle, in turn effectively increasing Eco’s exposure to the Tamar licence up to 80% (from 72%).
Tamar spans some 7,500 square kilometres, directly adjacent the Chariot Oil & Gas acreage that will next month host the drilling of a new exploration well.
"We are very pleased to announce the completion of this transaction, which simplifies our corporate structure, bringing all of our subsidiaries under Eco Atlantic's sole and wholly owned ownership,” said Gil Holzman, Eco chief executive.
“Following the Company's acquisition of the minority interest in Eco (Atlantic) Guyana Inc. announced earlier this year, this transaction further simplifies our corporate structure, and aligns all stakeholders into the ultimate parent company thus enables us to better manage each of our subsidiaries and their respective held licenses in preparation for future potential developments and transactions."
The other 20% of the Tamar licence is split between state-owned NAMCOR and Spectrum Geo Ltd.