Eco Atlantic inks Namibia farm-out

Farm-out: Eco Atlantic signs up Azimuth for Namibia deal

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.

Eco Atlantic also announced that it had terminated a farm-out it had previously agreed with West Bay Investments on its onshore coalbed methane licences in Namibia.

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 Atlantic said.

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 remainder.  

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