Eco Extends 'Promising' Namibia Licences

UK- and Canada-listed Eco Oil & Gas has successfully extended its licences offshore Namibia for another ten years, conditional to customary final government signature, it said November 30.

Each of the four licences – Sharon, Cooper, Guy and Tamar – includes the government's 10% working interest through state producer Namcor as well a further 5% working interest of Namibian business partners on each block. Azinam Group also participates in a minority capacity in each. Eco operates three of them.

Eco says it has now doubled the size of its non-operated Guy block acreage where it is the biggest partner with 47.2%, increasing the potential for new prospective targets in the deeper horizon  west of the block. The new licences cover about 28,593 km², with over 2.362bn barrels of oil equivalent P50 resources.

Eco CEO Gil Holzman said: "Successfully renegotiating our four licences offshore Namibia and being awarded over 28,500 km² in one of the most exciting exploration hotspots in the world is a significant milestone for Eco."

It now has the second largest footprint in the Walvis basin after ExxonMobil in a highly prospective region that has attracted the interest of a number of the major IOCs.

"The recent wildcat discoveries in South Africa and the entry into Namibia by ExxonMobil, Total, Qatar Petroleum and Shell over the last few years give us significant confidence that further discoveries will soon be made in Namibia. Near term, we look forward to drilling campaigns planned by Total, Shell, M&P, and ExxonMobil. These companies are amongst the leading oil finders in the world. The new licenses represent a strategic value creation opportunity for Eco Atlantic, amid the increased interest in the area," he said.