Eco (Atlantic) Oil & Gas Ltd (AIM:ECO, TSX-V:EOG) chief executive Gil Holzman joined Proactive's Stephen Gunnion with details of a farm-in deal to acquire a 75% stake in Block 1 in the Orange basin offshore South Africa, becoming the operator.
The block, formerly owned by Cairn, remained under a local South African company post-Covid. Eco Atlantic's fast-track approach, technical expertise, and deep understanding of the Orange Basin were key factors in securing the deal. The block includes extensive seismic data, facilitating immediate active exploration.
Holzman highlighted the block's potential, with shallow water gas fields estimated at around 5 TCF and significant oil prospects in deeper waters. The block's location between major discoveries by Shell and Galp enhances its attractiveness. Although there are no immediate seismic or drilling commitments, Eco Atlantic aims to advance the block to a drill-ready stage swiftly.
Holzman noted ongoing activity in the Orange Basin, with several wells expected to be drilled within the next 18 months, possibly including their blocks. The company plans to attract another major partner for the drilling campaign and will commence data collection and analysis upon government approval of the deal.
