Eco Atlantic Streamlines Namibian Operations with Strategic Portfolio Restructuring
Canadian oil and gas company Eco Atlantic has undertaken a comprehensive optimization of its Namibian operations, securing license extensions across all four petroleum exploration licenses while divesting its shallow-water interests to focus on deeper, more prospective acreage.
The AIM-listed company successfully negotiated a 12-month extension to the first renewal exploration period for PELs 97, 98, 99, and 100, extending operations until September 2026. The extended schedules provide additional time for enhanced exploration activities and attracting new farm-in partners, with optional renewal periods potentially extending operations for several more years.
In a significant strategic move, Eco farmed out its entire 85% working interest in PEL 98 (Sharon Block) to Lamda Energy, a wholly Namibian-owned company. Under the agreement, Lamda Energy will make an upfront payment for administrative costs and assume all license obligations and liabilities. The deal includes provisions for future payments to Eco of up to $2 million if Lamda Energy later farms out interests to third parties.
The restructuring allows Eco to concentrate on what it considers highly prospective deeper water acreage in the Walvis Basin. Updated work programs include 3D seismic reprocessing on PEL 97 and approximately 1,000 square kilometers of 3D seismic surveys on both PELs 99 and 100.
“These developments represent an important step in our tactical vision and an optimization of our Namibian portfolio and work programs,” said Gil Holzman, President and CEO of Eco Atlantic. The company has received environmental clearance for planned seismic activities across its licenses and is actively engaged in farm-down discussions with potential partners.
The transaction aligns with Eco’s long-standing commitment to supporting local participation in Namibia’s oil and gas sector, building on its history of promoting local ownership including NAMCOR as a 10% carried interest partner since 2011.
Sources: offshore-energy.biz, energy-pedia.com, namibiaoilandgas.com
