Namibia-focussed Eco Atlantic has reached a farm-out deal with Bermuda-based Azimuth in its three offshore licences in the African nation, while also terminating a separate farm-out for some onshore blocks.
Azimuth, which is backed by Seacrest Capital and Petroleum
Geo-Services, will earn a 20% working interest in the Cooper License (Block
2012A), the Sharon License (Blocks 2213A & 2213B) and the Guy License
(Blocks 2111B & 2211A).
In return, Azimuth will fund 40% of the 3D seismic surveys covering
2500 square kilometres across all three licenses. The combined cost of the
shoots is expected to exceed $25 million, Eco Atlantic said.
Eco Atlantic owns a 90% working interest in the three licenses,
with national oil company Namcor holding the remaining 10%.
Eco Atlantic, which will see its stake fall to 70% after the
farm-out, said it will be responsible for designing, sourcing and operating all
aspects of the 3D seismic programme.
The deal is subject to the approval of Namibia's Ministry of
Mines and Energy.
West Bay was to farm in to Blocks 2013B, 2014B, 2114 and
2418 with a 50% interest. However, the deal fell through after West Bay’s “material
breach” of the terms of the contract, leaving the deal “null and void”, Eco
Eco Atlantic will retain the 50% stake that would have been
farmed out, leaving its holdings in the blocks at 90%, with Namcor holding the