Eco Atlantic Oil & Gas said on Tuesday it had completed the sale of a 37.5% working interest in Block 1 CBK offshore South Africa to Navitas Petroleum, which will take over operatorship of the exploration area.
The energy firm said the completion follows regulatory approvals from the South African government and the TSX Venture Exchange. Eco received a $4 million cash payment from Navitas as part of the transaction and will also be carried by Navitas for the work program, with the carry capped at $7.5 million net to Eco.
Block 1 CBK covers 19,929 square kilometers offshore South Africa near the Namibian border. The block has both oil and gas potential and contains three legacy exploration wells, including a gas discovery that recorded tested flow rates of 32.4 million standard cubic feet per day.
Eco said the acreage also has prospectivity comparable to the Kudu gas field in Namibia and lies southeast of recent light-oil discoveries by Galp Energia, TotalEnergies (TTE) and Rhino Resources.
Shell's (SHEL) Merlin-1X exploration well, drilled in June, is the closest recent light-oil discovery to the block at about 70 km away, Eco said. Following the transaction, Eco and Navitas each hold a 37.5% working interest, while local partner OrangeBasin Energies retains 25%.
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