Eco (Atlantic) Oil & Gas Ltd, listed on AIM and TSX-V as ECO and EOG respectively, has finalized an agreement to incorporate TotalEnergies SE (listed on NYSE as TOT and EPA as TTE) and Qatar Energy into its Block 3B/4B venture, located in the Orange Basin off the coast of South Africa.
Under the agreement, Eco is set to gain up to $32.1 million in value, including immediate payments as part of its existing agreement with Africa Oil Corp (TSX:AOI).
Total and Qatar Energy will contribute up to $11.92 million in phased cash payments, linked to specific project benchmarks.
Furthermore, Eco’s expenses for its 6.25% stake in the joint venture will be fully covered by its partners, with reimbursement coming from its portion of initial production once any developed field begins operation.
Additionally, Total and Qatar Energy will acquire a 9.25% stake in the project from Africa Oil.
Eco’s CEO, Gil Holzman, expressed his enthusiasm about the partnership with TotalEnergies and QatarEnergy, highlighting Block 3B/4B’s location in a globally significant region for offshore oil and gas exploration and development.
He noted the significance of Total and Qatar Energy’s investment, underpinned by their recent discovery of a substantial light oil reserve in the Venus field, located just north of the Orange Basin in Namibia.
Holzman also thanked partners at Africa Oil and Ricocure for their collaborative effort in negotiating this deal and expressed eagerness to work closely with the South African government and new partners in preparing for the first drilling operations.
Following this agreement, the project equity division will be as follows: TotalEnergies as the operator with a 33% stake, Qatar Energy holding 24%, Ricocure with 19.75%, Africa Oil at 17%, and Eco retaining a 6.25% interest.
