Eco (Atlantic) Oil & Gas will farm-into Block 1 in South Africa’s offshore Orange Basin, cementing the region’s position as a global exploration hotspot.
Through its subsidiary Azinam South Africa, the company will acquire a 75% working interest and assume operatorship of the Block from privately-owned energy company Tosaco Energy. Under the agreement, Eco (Atlantic) will also carry its partner through the budget and work program for the first three years, for a total investment of up to $2.3 million. Block 1 already has significant 2D and 3D seismic data completed, with the company planning to interpret and analyze this data within the next three years.
The block is considered highly prospective for oil and gas resources, with the Kudu gas discovery located to the north and multiple gas discoveries in the Ibhubesi field to the south. Located along the southern South Atlantic coast of Namibia and South Africa, the Orange Basin has been the site of several hydrocarbon discoveries by Shell, TotalEnergies, and Galp in its Namibian sector since 2022.
“The Orange Basin continues to prove to be one of the newest and most prolific plays in the world and is running similar statistics to our Guyana play. Following completion of this Farm-in, Eco will have one of the largest blocks in the entire Orange Basin,” said Colin Kinley, Co-Founder and COO of Eco Atlantic. “This is a strategic play for Eco… where we believe there are significant near shore prospective gas resources.”
At the same time, Eco (Atlantic) will relinquish its 50% working interest and operatorship of offshore Block 2B, as it’s considered a non-core asset in the context of the company’s broader portfolio.
