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Eco (Atlantic) Oil and Gas Ltd. Announces Strategic Acquisition
Strategic Acquisition Offshore South Africa and Namibia 2022 Drilling Programme TORONTO,...
About this update from Eco (atlantic) Oil & Gas Ltd.
[{"type":"text","content":"Eco (Atlantic) Oil and Gas Ltd. Announces Strategic AcquisitionStrategic Acquisition Offshore South Africa and Namibia 2022 Drilling ProgrammeTORONTO, ON / ACCESSWIRE / January 10, 2022 / Eco (Atlantic) Oil & Gas Ltd. (AIM: ECO, TSX ‐ V: EOG), the oil and gas exploration company focused on the offshore Atlantic Margins, announces today that it has signed a Memorandum of Understanding (\"MOU\") to acquire 100% of Azinam Group Limited (\"Azinam\") (the \"Acquisition\"), including Azinam's entire offshore asset portfolio, in return for a 16.65% equity stake in the enlarged Group on completion of the Acquisition.HighlightsAcquisition of a material offshore petroleum exploration asset base in Namibia and South AfricaConsideration in the form of new common shares to Azinam Holdings Limited (the \"Vendor\") who will own 16.65% of the enlarged GroupThe Vendor will also be issued warrants in the Company, exercisable only upon a producible commercial discoveryThe transaction strengthens the Groups strategic partnership with Africa Energy and Africa OilClear drilling programme with an exploration well planned to be drilled on Block 2B - South Africa in H2 2022The deal is expected to complete by 31 January 2022 subject, inter alia, to the signing of a Share Purchase Agreement and satisfactory completion of due diligence by Eco and any requisite approvalsDiscussions are already underway with Eco's key existing stakeholders in relation to underwriting the funds required to participate directly in the 2022 Block 2B South Africa drilling programme.Information on the AcquisitionAzinam is a wholly owned subsidiary of Azinam Holdings Limited (the \"Vendor\"), which is majority owned by Seacrest Capital Group (\"Seacrest\"). Azinam has successfully built a material offshore petroleum assets base in Namibia and South Africa. Pursuant to the MOU and subject, inter alia, to the signing of a binding share purchase agreement and completion of the Acquisition, Eco Atlantic will issue to the Vendor such number of new common shares in Eco as provides the Vendor with 16.65% 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.Offshore South Africa, Orange Basin, Eco Atlantic will acquire 50% Working Interest (\"WI\") and Op...