Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Eco firms up Azinam deal amid Graff fervour

© Supplied by Maersk DrillingDrillship with reflection on blue water
The Maersk Voyager

Eco Atlantic Oil & Gas has signed a definitive agreement to acquire Azinam Group, focused on the emerging areas off South Africa and Namibia.

Eco will acquire 100% of Azinam in return for a 16.5% equity stake. The deal should take two to three weeks.

The agreement puts Eco “a step further towards joining all of Azinam’s offshore exploration acreage into our broader portfolio”, said company CEO Gil Holzman.

“We are working towards drilling a well on Block 2B, a highly prospective play in the Orange Basin, offshore South Africa, close to the recent discovery by Shell and Qatar Energy in the Orange Basin in Namibia. The well is planned for the second half of this year,” Holzman continued.

Eco said discussions were under way with existing stakeholders on underwriting funds for Block 2B.

Eco will follow the South African well with one in Guyana.

Drilling down

Block 2B has “an established oil discovery [and] possesses considerable upside potential”, he continued.

“We also evaluate that Block 3B/4B, with the block partners at Africa Oil and Ricocure in the Orange Basin, South Africa, is directly correlated to the Graff-1 well.”

Shell has confirmed a light oil discovery at the Graff well, with Namcor reporting discoveries in the primary and secondary targets.

“We look forward to firming up our exciting drilling plans and updating our shareholders on the funding structure and timing of the wells in due course,” Holzman said.

Eco will gain a 50% stake in Block 2B, and the role of operator. It will also take a 20% stake in Block 3B/4B. In Namibia, Azinam has stakes in PEL 97, 98 and 99.

For the deal to go ahead, Eco requires approval from the South African and Namibian governments, in addition to the TSX Venture Exchange.

Eco reported Azinam had total assets of $2 million as of the end of September 2021. It also had liabilities to third parties of $1.3mn.

Eco hired Selma Usiku in early 2021. Usiku had previously worked for HRT, which made the crucial discovery of oil off Namibia in 2013, and Azinam.

Graff-alikes

Eco is not the only company to have taken heart from Shell’s Graff discovery. A number of small players in Namibia have celebrated the discovery.

At the top of the queue is Pancontinental Energy, which has a 75% stake in PEL 87. Technical director Barry Rushworth described Graff as “hugely important” for the company’s holdings off Namibia.

“Pancontinental’s very large Saturn turbidite complex in PEL 87 is on-trend to the Graff discovery,” Rushworth said. He compared the prospect to TotalEnergies’ Venus.

Another company taking heart from Graff was Tower Resources. The minnow has a stake in PEL 96, in the Walvis Basin around 950 km away. “While this is a considerable distance, certain conclusions can nevertheless be drawn that are relevant to our Namibian blocks,” Tower said.

Global Petroleum also has a stake in PEL 94, also in the Walvis Basin. The company’s top prospect, Marula, is a stratigraphic trap with late Cretaceous deepwater sandstone reservoirs, it said, similar to Graff.

Global’s two top prospects are in shallower waters and at shallower subsurface depths. This would make a discovery more commercially viable, it continued.

Meanwhile, CGG has flagged up a long-offset 2D seismic survey it has on the Orange Basin, off Namibia. The seismic company’s data, with Namcor and TGS, has a tie line to this key well.

© Supplied by CGG
CGG has flagged up a long-offset 2D seismic survey it has on the Orange Basin, off Namibia. Picture shows; CGG survey in the Orange Basin, Namibia. Supplied by CGG Date; Unknown

Recommended for you

More from Energy Voice

Latest Posts