Eco (Atlantic) Oil & Gas, a Toronto-headquartered oil and gas exploration company focused on the offshore Atlantic margins, has signed a memorandum of understanding to acquire 100% of Azinam Group Limited, a wholly owned subsidiary of Azinam Holdings Limited.
Offshore South Africa in the Orange Basin, Eco will acquire 50% working interest and operatorship in Block 2B, where Africa Energy Corp. and Panoro Energy ASA also have working interests. The company will acquire, as well, a working interest of 20% in the deepwater 3B/4B Block and the shallow water and Nearshore 3B/4B Blocks, strengthening its ongoing partnership with Africa Oil Corp.
Offshore Namibia, Eco will acquire working interests and operatorship in three blocks adjacent to its existing block, “giving [the company] 85% and operatorship in four highly prospective blocks,” according to Eco CEO Gil Holzman.
On completion of the acquisition, the purchaser will issue shares in Eco to Azinam Holdings to provide the vendor with 16.65% of Eco’s then enlarged share capital. In addition, Azinam Holdings will be issued warrants over new common shares in Eco, exercisable only in case of a producible commercial discovery on Block 2B or Block 3B/4B.
The deal is expected to be completed by January 31.