Eco (Atlantic), the AIM- and TSX(V)- listed oil and gas exploration company focused on the offshore Atlantic Margins, has completed its transaction for the sale of a 1% participating interest in Block 3B/4B offshore South Africa to Canadian full-cycle oil and gas explorer and developer Africa Oil.

Under the transaction, Eco’s wholly owned subsidiary Azinam has transferred the 1% participating interest in Block 3B/4B including the associated exploration right and joint operating agreement rights to Africa Oil SA Corp. (AOSAC), a wholly owned subsidiary of Africa Oil, Eco said in a press statement on January 13.

In consideration, Africa Oil has exchanged the shares and warrants that it held in Eco for cancellation. The Africa Oil group now holds a direct 18% interest in Block 3B/4B. Eco now holds a fully carried 5.25% interest in the block, reduced from 6.25%.

Other partners in the block are: French oil and gas supermajor TotalEnergies with a 33.00% operated interest; QatarEnergy with a 24.00% interest; and private South African explorer Ricocure, with a 19.75% interest.

“The conditions precedent to the exchange transaction, including requisite regulatory approvals from the government of the Republic of South Africa, TSX Venture Exchange, applicable Canadian Securities Commissions, and the relevant approvals from the Block 3B/4B joint venture partners, have now been satisfied,” Eco said.

Block 3B/4B is located in the Orange Basin offshore South Africa, spanning an area of 17,581 km² in water depths ranging from 300 to 2,500 meters. Positioned southeast and along the trend of significant oil discoveries, including TotalEnergies’ Venus, the block holds substantial exploration potential. Approximately 14,000 km of 2D seismic data and 10,800 km² of 3D seismic data have been acquired over the block, revealing a wide range of exploration prospects, with most situated in water depths of around 1,500 metres.

Africa Oil is listed on the Toronto Stock Exchange and Nasdaq Stockholm. The company has producing and development assets in deepwater Nigeria and an exploration/appraisal portfolio in the west and south of Africa.

“This transaction is another step in delivering the strategy of increasing direct interest in Africa Oil’s key assets, including our opportunity set in the Orange Basin, a region with high levels of industry interest and activity,” Africa Oil CEO Roger Tucker said in a press statement announcing the transaction. “We thank Eco Atlantic’s management for their collaborative approach in working with us since 2017, and we look forward to further progress towards the drilling of the first exploration well on Block 3B/4B.”

According to the statement, an environmental authorisation for exploration activities with drilling of up to 5 exploration wells was granted by the Department of Mineral Resources and Energy for the Republic of South Africa on September 16, 2024.