TORONTO,
May 31, 2012 /CNW/ - ECO
(ATLANTIC) OIL AND GAS LTD. (TSX-V:EOG, NSX: EOG) Eco
(Atlantic) Oil & Gas Ltd. ("Eco Atlantic" or the
"Company") is pleased to announce that Namibia's Minister of Mines and Energy has
approved today, the assignment pursuant to the Farm-out Agreement
with Azimuth Ltd. ("Azimuth") of Hamilton, Bermuda, an exploration and
production company backed by majority-owner Seacrest Capital Ltd.
and Petroleum Geo-Services ASA ("PGS"), (Farm-Out Agreement
announced on April 12, 2012).
With this final condition of the assignment
being satisfied, Azimuth is now a 20% registered working interest
partner 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) (jointly, the
"Licenses") and will fund 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.
As a result of this transaction, Eco Atlantic's
interest will be 70%, held through its wholly owned subsidiary, Eco
Oil and Gas Namibia (PTY) Ltd., Azimuth has a 20% interest, and
NAMCOR will retain its 10% carried interest. Eco Atlantic, through
the project management group of Kinley Exploration and Azimuth will
be responsible for designing, sourcing and operating all aspects of
the 3D seismic program.
Gil Holzman,
President and Chief Executive Officer of Eco Atlantic commented,
"Eco Atlantic is pleased to have received the final approval
from the Ministry of Mines and Energy of The Republic of
Namibia to execute the Farm-out
Agreement, thereby securing the relationship with Azimuth as a
license and technical partner. We are ahead of schedule to initiate
our 3D program together with Azimuth, so to better define the
drilling targets on our 9 billion barrels prospect Guy, 7.8 billion
barrels prospect, Sharon, and 1.15 billion barrels prospect,
Cooper. The 3D program, expected to commence later this year should
enable us to define each blocks' drilling targets."
About Eco Atlantic
Eco Atlantic is an oil and gas exploration
company focused on the new and bourgeoning petroleum opportunity in
Namibia. Through its wholly owned
Namibian subsidiary, Eco Namibia, it holds five petroleum licenses
issued by the Government of the Republic of Namibia. Eco Namibia holds three offshore
license blocks covering more than 25,000 square kilometers
(6,177,000 acres), in the Walvis Basin. Eco Namibia also holds two
onshore license blocks covering 30,000 square kilometers
(7,413,000 acres). Eco Namibia enjoys a strong local presence, and
has a longstanding relationship with the energy and oil and gas
sector in Namibia and in the
region. The terms and conditions of these licenses are regulated by
agreements signed by Eco with the Government of the Republic of
Namibia in March 2011.
Forward Looking Statements
CAUTIONARY NOTE REGARDING FORWARD LOOKING
STATEMENTS: Certain information in this press release constitutes
forward-looking statements under applicable securities law. Any
statements that are contained in this press release that are not
statements of historical fact may be deemed to be forward-looking
statements. Forward-looking statements are often identified by
terms such as "may", "should", "anticipate", "expects" and similar
expressions. Forward-looking statements necessarily involve
known and unknown risks, including, without limitation, risks
associated with oil and gas production and exploration, marketing
and transportation; loss of markets; volatility of commodity
prices; currency and interest rate fluctuations; imprecision of
reserve estimates; environmental risks; competition; inability to
access sufficient capital from internal and external sources;
ability to obtain government and regulatory approval; changes in
legislation, including but not limited to income tax, environmental
laws and regulatory matters. Readers are cautioned that the
foregoing list of factors is not exhaustive.
In addition, statements relating to
"resources" or "prospective resources" are deemed to be
forward-looking statements as they involve the implied assessment,
based on certain estimates and assumptions, that the resources and
prospective resources described exist in the quantities predicted
or estimated and can be profitably produced in the future.
There is no certainty that any portion of the resources or
prospective resources will be discovered. If discovered,
there is no certainty that it will be commercially viable to
produce any portion of the resources.
Although Eco Atlantic believes in light of
the experience of its officers and directors, current conditions
and expected future developments and other factors that have been
considered appropriate that the expectations reflected in this
forward-looking information are reasonable, undue reliance should
not be placed on them because Eco Atlantic can give no assurance
that they will prove to be correct. The forward-looking statements
contained in this press release are made as of the date hereof and
Eco Atlantic undertakes no obligation to update publicly or revise
any forward- looking statements or information, whether as a result
of new information, future events or otherwise, unless so required
by applicable securities laws.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this press release.
SOURCE Eco Oil & Gas (Atlantic) Ltd.