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Eco Atlantic raises USD12.3 million to up stake in Block 3B/4B

Mon, 27th Jun 2022 11:54

(Alliance News) - Eco Atlantic Oil & Gas Ltd on Monday said it has successfully raised USD12.3 million through a subscription and a placing, as it acquires an additional interest in Block 3B/4B, South Africa.

The Toronto-based oil and gas exploration company fundraised USD10.1 million via a placing of 27.5 million shares. The new shares were issued at 30 pence each.

Further, Eco Atlantic raised USD2.2 million via a subscription of 5.9 million shares at the placing price.

In total, the placing shares and subscription shares represent 11% of the company's existing share capital, prior to the fundraise.

Eco Atlantic said it will use the proceeds to increase its investment in Block 3B/4B, whilst the remaining will be used to reprocess 3D seismic data and commence potential well exploration operations at Block 3B/4B and Guyana Orinduik Block.

Block 3B/4B covers an area of 17,581 kilometre squared, and it is located directly south of the multibillion barrels discoveries offshore Namibia announced earlier this year by Shell PLC and TotalEnergies SE.

On Monday, Eco Atlantic said its wholly owned subsidiary Azinam Ltd has signed an agreement to buy an additional interest, just shy of 6.3%, in Block 3B/4B.

Eco Atlantic is acquiring the additional interest from the Lunn Family Trust, one of the shareholders of Ricocure Ltd.

On completion of the USD10 million acquisition, Eco Atlantic will, through Azinam, hold a 26% stake in Block 3B/4B. Meanwhile, Ricocure will hold a majority stake of 54%, whilst Africa Oil Corp have a 20% interest.

Co-Founder and Chief Executive Gil Holzman said: "We are extremely pleased to be increasing our interest in Block 3B/4B, which looks to be a very exciting licence for all the partners involved. We are upbeat about the prospectivity of the licence following the significant oil discoveries made earlier in the year offshore Namibia Orange Basin, and we are pleased to be strengthening our working relationship with Ricocure and Africa Oil Corp."

"We are seeing growing industry interest in the entire Orange Basin and in particular in Block 3B/4B, and are therefore very happy to have managed to increase our WI on the Block," Holzman added.

Shares in Eco Atlantic were up 2.6% to 25.66p each in London on Monday midday.

By Sophie Rose; sophierose@alliancenews.com

Copyright 2022 Alliance News Limited. All Rights Reserved.

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