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(Sharecast News) - Eco Atlantic confirmed the formal transfer of a 75% working interest and operatorship in Block 1 offshore South Africa on Wednesday, strengthening its position in the highly prospective Orange Basin.
Following approval from South Africa's Department of Mineral and Petroleum Resources, Eco said it had completed the final steps under its farm-in agreement with Tosaco Energy, including the associated milestone payment.
The AIM-traded firm said the acquisition was made through its wholly owned subsidiary, Azinam South Africa.
Block 1 spans nearly 20,000 square kilometres along the maritime border between South Africa and Namibia and lies adjacent to recent discoveries by Shell, TotalEnergies, Galp Energia, and others.
It includes a full-margin transect from shoreline to deepwater, with depths of up to 1,000 metres and both shallow and deepwater exploration potential.
Eco said it had already acquired and is analysing an extensive set of seismic and well data.
The block contains the historic Soekor AF-1 gas discovery and AE-1 well, both of which provide further evidence of an active petroleum system.
Eco said it was planning to launch a formal farm-out process for Block 1 in August.
The company, which also holds four blocks under review in Namibia and a near-term drilling opportunity in Guyana, said it was focussed on value-driven, high-impact exploration across the Atlantic Margin.
"As the Orange Basin continues to demonstrate its world-class hydrocarbon proof and potential, Eco's executive team has worked relentlessly over the past 18 months to secure a premier asset on the South African side of the basin," said co-founder and chief executive officer Gil Holzman.
"With the successful approval and execution of the exploration right and 75% Working interest award, we are proud to have secured one of the largest and prospective blocks in the entire basin with a known hydrocarbon footprint - Block 1 - located directly on the South Africa-Namibia maritime border.
"Block 1 adds to our portfolio in the Orange basin which also includes Block 3B/4B operated by TotalEnergies."
Holzman said initial interpretation was underway, adding that the firm was in the process of delineating early leads to develop the exploration strategy.
"We are already seeing significant inbound interests from international oil companies and mid-tier partners.
"As a result, we anticipate launching a formal farm-out process in August with further updates to follow in due course."
At 1315 BST, shares in Eco Atlantic Oil & Gas were up 3.55% at 10.2p.
Reporting by Josh White for Sharecast.com.