Azimuth Ltd., Hamilton, Bermuda, will earn a 20% working interest from Eco (Atlantic) Oil & Gas Ltd., Toronto, in three licenses in the Atlantic offshore Namibia under a farmout agreement.
Azimuth will fund 40% of the cost of 2,500 sq km of 3D seismic on blocks 2012A, 2213A-2213B, and 2111B-2111A which total more than 25,000 sq km. Assignment of a 20% working interest in the licenses to Azimuth is subject to the approval of Namibia’s Ministry of Mines & Energy.
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, expected to cost more than $25 million.
Eco Atlantic currently holds a 90% working interest in the licenses through a subsidiary, and Namibia’s state NAMCOR has 10% carried.
Meanwhile, Eco Atlantic terminated a farmout agreement with West Bay Investments Ltd. as to the 2013B, 2014B, 2114, and 2418 onshore coalbed methane blocks that cover 7.4 million acres and has been granted an extension to drill at least one well by March 2015.
