Eco (Atlantic) Oil & Gas Ltd. has completed a farm down of its 13.75% interest in Block 3B/4B offshore South Africa. The transaction involved the transfer of operatorship to TotalEnergies following regulatory approval. Eco Atlantic now holds a 6.25% interest in the block.
The farm down was part of a larger 57% transaction, which included partners Africa Oil and Ricocure, transferring interests to TotalEnergies and QatarEnergy. Eco Atlantic will receive US$8.3 million from this deal, with additional payments up to US$11.5 million due upon the drilling of the first exploration well.
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TotalEnergies now operates the block with a 33% interest. QatarEnergy holds 24%, Africa Oil 17%, Eco’s subsidiary Azinam Limited retains 6.25%, and Ricocure holds 19.75%.
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Gil Holzman, Chief Executive Officer of Eco Atlantic, expressed gratitude to the team and partners, emphasizing the importance of the deal. “Block 3B/4B sits in a prolific hydrocarbon jurisdiction, and we are excited to continue preparations for first drilling on the block under the leadership of TotalEnergies.”
Holzman also highlighted that the transaction strengthens Eco’s balance sheet, allowing the company to focus on its broader work programs in Guyana and Namibia without diluting shareholder value.
In Guyana, Eco is the sole owner of Orinduik Block but is pursuing a substantial farm-out with as much as nine companies in the running. Eco identified two drill targets in the Orinduik Block to be spud in 12-18 months. The targets – Kumaka and Iatuk – reside in the same zone as ExxonMobil’s Liza discoveries.
The company had been a minority partner until Tullow (former operator) left by selling its Guyana affiliate to Eco. TotalEnergies and QatarEnergy also handed over a stake they had held as a joint venture. Two heavy oil discoveries were made at the block in 2019 – Jethro and Joe. Eco said studies indicated that there is enough proven oil there to make development profitable.
