Eco (Atlantic) Oil & Gas Completes Transaction with Africa Oil Corp. for Stake Increase in South African Block

AIM-listed and Canada-headquartered oil and gas company Eco (Atlantic) Oil & Gas has finalized a significant transaction with compatriot Africa Oil Corp., resulting in the latter’s subsidiary increasing its stake in a block offshore South Africa.

Back in July, Eco’s subsidiary Azinam Limited agreed to sell and assign a 1% participating interest in Block 3B/4B offshore South Africa to Africa Oil’s subsidiary Africa Oil SA Corp. (AOSAC). In exchange, all shares and warrants of Africa Oil in Eco were canceled.

With all conditions met, including approval from the Government of the Republic of South Africa, Eco has successfully concluded the transaction. As a result, Eco now holds a fully carried 5.25% interest in Block 3B/4B.

The offshore block spans 17,581 square kilometers and is situated between 120 and 250 kilometers off the western coast of South Africa, with water depths ranging from 300 to 2500 meters.

“We are delighted to have received approval from the South African Government for Eco’s transaction with Africa Oil. This marks a significant step towards the joint venture partners’ drilling plans on the Block in 2025,” stated Gil Holzman, Co-Founder and CEO of Eco Atlantic.

“The transaction enhances Eco’s balance sheet and generates shareholder value through a reduction in the Company’s share count. We look forward to further collaboration with Africa Oil as we focus on maximizing shareholder value across our portfolio.”

Following Africa Oil’s exit as a shareholder, Oliver Quinn has stepped down from Eco’s board of directors, and Emily Ferguson has been appointed as Non-Executive Director.

Ferguson brings 22 years of experience in the oil and gas industry, with a background in technical, commercial, and senior leadership roles. She most recently served as VP of Exploration for Europe, the Middle East, North Africa, and Asia at TotalEnergies.

Earlier, TotalEnergies and QatarEnergy acquired interests in Block 3B/4B, with TotalEnergies assuming operatorship from Africa Oil in August 2024. The deal was finalized six months after the initial announcement, with TotalEnergies holding a 33% interest, QatarEnergy 24%, AOSAC 17%, Azinam Limited 6.25%, and Ricocure (Proprietary) Limited 19.75%.