$EOG.V

Eco Agrees to Farm Down 37.5% Working Interest in Block 1 CBK to Navitas Petroleum LP

Eco (Atlantic) Oil & Gas (EOG.V) signed a definitive agreement to farm down a 37.5% working interest in Block 1 CBK offshore South Africa (Block 1 CBK) to Navitas Petroleum LP, through a unit, it said Wednesday.The agreement is conditional on receipt of customary regulatory approvals, from the Petroleum Agency of South Africa and the TSX Venture Exchange, and receipt of US$4 million cash payment from Navitas to Eco. Following a review of geological data, Navitas has elected to exercise the Block 1 CBK option through the execution of a definitive farmout agreement on May 19, said the company.Navitas will become the operator of Block 1 CBK with 37.5% working interest upon completion of the deal and Eco will retain a remaining working interest of 37.5%. Eco will be carried by Navitas for the work programme, the value of the carry being capped at US$7.5 million net to Eco.The amounts carried by Navitas will be repaid via Eco's share of proceeds from future production on the Block, it added."Building on our recent farm down to BP in Namibia, we have now further deepened our strategic partnership with Navitas, working not only in South Africa but also in highly prospective acreage offshore the Falkland Islands in PL001, which Eco will gain further exposure to upon the upcoming completion of our acquisition of JHI Associates Inc.," said Eco Chief Executive Gil Holzman. "Additionally, Navitas also holds options to acquire 80% of Eco's interests in the Guyana Orinduik Block where we are progressing advanced discussions with the Government over the terms of the next exploration and appraisal stages, offering scope for our partnership to extend further."Shares of the company closed unchanged at $1.1 on Tuesday on the TSX Venture Exchange.

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Eco (Atlantic) Oil & Gas Farms Down Namibia Portfolio to BP

Eco (Atlantic) Oil & Gas (EOG.V) on Monday said it has signed an agreement to farm down 60% participating interest in all three of its petroleum exploration licenses offshore Namibia to BP Namibia Energy.Under the agreement, Eco subsidiaries will farm out an aggregate of 60% participating interest and transfer operatorship to BP of Block 2012A PEL97, Blocks 2111B and 2211A PEL99, and blocks 2211B and 2311A PEL100.At deal completion, Eco will retain a 25% interest in PEL97, PEL99 and PEL100. Deal completion is subject to customary conditions and approvals from the Namibian authorities, Ministry of Industries Mines and Energy and Upstream Petroleum Unit at the State House.A one-time cash consideration of US$2.7 million is payable at deal completion.If BP and its partners elect to enter the second renewal period of the license term in 2028 and commit to drilling an exploration well, Eco will have the option to either exercise a put option to transfer an additional 10% participating interest to BP in exchange for a full carry on Eco's remaining 15% participating interest subject to a cap of $21 million net to Eco for each well on each of the licenses; or elect to retain its 25% participating interest of the costs associated with such drilling of a well during the second renewal period.The maximum aggregate carry consideration payable by BP in respect of each put option is $63 million with a cap of $21 million per put option.Eco can elect to retain its 25% paying interest or to farm out to other potential partners.Eco will use deal proceeds to support its ongoing exploration and appraisal activities across its Atlantic Margin portfolio and for general working capital purposes.

Eco (Atlantic) Oil and Gas Announced Farm Down of Namibian Portfolio to BP