Eco (Atlantic) Oil & Gas (ECO.L) completed the farm-down of its 37.5% working interest in Block 1 CBK offshore South Africa and transferred operatorship to Navitas Petroleum after securing regulatory approvals.
As such, the company has received the $4 million cash consideration under the deal, according to a Tuesday filing. Navitas will also carry Eco's expenses for the block's work program, capped at $7.5 million, with the amount to be repaid through Eco's share of future production proceeds.
The oil and gas exploration company will retain a 37.5% working interest in Block 1 CBK, with an option to acquire up to a 47.5% interest through its deal with OrangeBasin Energies.