Canada’s Eco Oil & Gas to acquire Namibia’s exploration company Azinam Group Limited

NAMIBIA – Eco (Atlantic) Oil & Gas, a Toronto-headquartered oil and gas exploration company focused on the offshore Atlantic margins, has signed a memorandum of understanding to acquire 100% of Azinam Group Limited, a wholly owned subsidiary of Azinam Holdings Limited.

AziNam is an exploration and production company focused on rapidly progressing the exciting opportunities in Namibia.

Offshore South Africa in the Orange Basin, Eco will acquire 50% working interest and operatorship in Block 2B, where Africa Energy Corp. and Panoro Energy ASA also have working interests.

The company will acquire, as well, a working interest of 20% in the deepwater 3B/4B Block and the shallow water and Nearshore 3B/4B Blocks, strengthening its ongoing partnership with Africa Oil Corp.

As earlier disclosed, the Acquisition will result in the issuance to Azinam Holdings of, in aggregate, 40,170,474 Common Shares (the New Issue), providing Azinam Holdings with 16.5% of Eco’s share capital as enlarged by such issue (Enlarged Share Capital), providing for a cashless acquisition to become the sole owner of Azinam’s entire African portfolio.

The Company expects to receive customary formal acknowledgment from the government of South Africa in respect of this change of control shortly.

Offshore Namibia, Eco will acquire working interests and operatorship in three blocks adjacent to its existing block, “giving [the company] 85% and operatorship in four highly prospective blocks,” according to Eco CEO Gil Holzman.

“We are happy to now officially own Azinam Group Ltd. and its subsidiaries. We now look forward to operating a number of highly prospective licences in three exploration hotspots: Guyana, Namibia and South Africa,” Gil Holzman said.

“We continue to make strong progress towards the upcoming drilling of the Gazania-1 well on Block 2B, offshore South Africa, and following the signing of the rig contract earlier in the month we anticipate drilling to commence in late Q3 2022. 

“We look forward to receiving the final formal acknowledgement from the South African government for the change of control entities and to making further updates on our strategic acreage in due course.”

In addition, Azinam Holdings will be issued warrants over new common shares in Eco, exercisable only in case of a producible commercial discovery on Block 2B or Block 3B/4B.

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