Independent oil and gas firm Eco (Atlantic) Oil & Gas has finalized the farm-down of a 13.75% participating interest in Block 3B/4B – situated in the Orange Basin offshore South Africa – to multinational energy company TotalEnergies and Qatari national oil company QatarEnergy.
As part of the farmout agreement, Eco (Atlantic) Oil & Gas will receive $8.3 million, including linked milestone payments of $4 million from exploration and production company Africa Oil and $1.56 million from oil and gas firm Ricocure.
The company will also receive an additional $11.5 million from TotalEnergies, QatarEnergy and Africa Oil Corp. upon spudding of the first well in the block.
“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,” stated Eco Atlantic Co-founder and CEO Gil Holzman.
With this transaction, TotalEnergies becomes the operator of the block, holding a 33% interest while Eco (Atlantic) Oil & Gas retains a 6.25% stake. QatarEnergy will hold a 24% interest while Africa Oil Corp. and Ricocure Limited will retain their 17% and 19.75% participating stakes, respectively.
