Azimuth Partners With Eco Atlantic
Bermuda’s Azimuth Ltd., an exploration and production company jointly owned by Seacrest Capital Ltd. and Petroleum Geo-Services ASA, today [Dec. 22] entered into a multi-million dollar agreement with Canada’s Eco Atlantic Oil & Gas
Hamilton-base Azimuth has subscribed for C$3 million of Eco the company’s private placement announced December 9, 2011 and will also farm-in to Eco Atlantic’s offshore Namibia license blocks.
Pursuant to the agreement, Azimuth will acquire a 20% working interest in each of Eco Atlantic’s offshore Namibia licenses, namely the “Cooper License” [Block 2012A], the “Sharon License” [Blocks 2213A & 2213B] and the “Guy License” [Blocks 2111B & 2211A] in return for funding 40% of the cost of 3D seismic surveys covering 2,500 square kilometers across all three licenses, the acquisition of which is expected to cost in excess of US$25 million.
The assignment of a 20% working interest in the licenses to Azimuth is subject to a number of conditions, including the approval of Namibia’s Ministry of Mines and Energy and the completion of a definitive farm-in agreement.
Gil Holzman, president and CEO of Eco Atlantic commented, “Eco Atlantic is very fortunate to have the opportunity to jointly work with Azimuth as an equity, license and technical partner. Despite the challenging global markets, Eco Atlantic has once again displayed in a very short time its ability to execute transactions adding significant shareholder value by partnering with a group that has a significant amount of technical experience offshore West Coast Africa.
“This partnership will enhance the technical ability brought to analyze the licenses, thereby reducing the execution risk and strengthening the company’s technical and financial ability to perform its offshore Namibia state of the art exploration program.
“In addition, Azimuth’s significant participation in the private placement complementing additional participation in the current raise demonstrates their commitment and confidence in the prospectivity of the company’s assets.”
Aaron D’Este, Managing Director of Azimuth, commented, “We are delighted to enter into partnership with Eco Atlantic. Namibia is an exciting and promising petroleum province and Eco Atlantic’s portfolio of offshore acreage spans three distinct environments, each with excellent prospectivity.
“Our new working interest in Eco Atlantic’s licenses will complement Azimuth’s existing positions in the Adriatic, Benin and Ghana, and we look forward to working with the Eco Atlantic team to rapidly develop a suite of robust drilling targets underpinned by 3D seismic.”
