Africa-Press – Namibia. THE co-founder and chief executive officer of Canadian firm Eco Atlantic, Gil Holzman, says the company is delighted with its decision to buy a controlling stake in the Azinam group’s offshore petroleum exploration in Namibia and South Africa.
He says the acquisition is part of their plan to align with Africa Oil Corporation and the broader Lundin Group through direct partnership in blocks 3B/4B and 2B in the two countries.
“The acquisition strengthens our long-term and strategic position in Namibia, giving us 85% and operatorship in four highly prospective blocks, and gives us added versatility as we look to partner with a major player to help accelerate further exploration activities in the country’s burgeoning energy industry,” he says.
Meanwhile, another co-founder and chief operating officer, Colin Kinley, says much of the engineering and geological and geophysical work on the Gazania-1 oil well had been were completed last year.
“So we are stepping into an active plan, which has the potential to offer shareholders additional near-term catalysts. We have an experienced team of exploration specialists who are working to finalise the well planning, and we benefit from having excellent support from our joint-venture partners at Africa Energy from their Cape Town base,” he says.
The company has signed an agreement to acquire 100% of Azinam Group Limited, including Azinam’s entire offshore asset portfolio, in return for a 16,65% equity stake in the enlarged group on completion of the acquisition.
The acquisition is subject to the signing of a share purchase agreement and satisfactory completion of due diligence by Eco and any requisite approvals from the governments of Namibia and South Africa, as well as the Toronto Stock Exchange’s Venture Exchange.
Azinam has successfully built a material offshore petroleum asset base in Namibia and South Africa. In a statement, the company says they will acquire 50% in the Orange River Basin with working interest and operatorship in block 2B, where Africa Energy Corp and Panoro Energy ASA maintain working interests.
Eco Atlantic will also acquire a material working interest of 20% in the deepwater 3B/4B Block, and the shallow-water and near-shore 3B/4B blocks where the company will strengthen its ongoing strategic partnership with Africa Oil Corporation as the operator and 20% working-interest partner.
Eco will also acquire additional working interests in Namibia and its current oil blocks, where Azinam is a partner in petroleum exploration licences blocks 97, 98 and 99.
Late last year Azinam’s total assets were worth N$256 million (US$16 million), and the group recorded a net income of almost N$17 million (US$1,26 million).
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