South Africa’s government has approved the transfer of a 6.25% interest in a highly prospective block off the country’s western coast to Canada’s Africa Oil Corp. (AOC) from Azinam, a wholly-owned subsidiary of London-listed Eco Atlantic (Eco).

AOC has paid $2.5mn to Eco Atlantic for the stake in the licence in the Orange basin, just south of a tract where the super-majors Shell (UK) and TotalEnergies (France) have recently made big discoveries in Namibia’s offshore zone.

As a result, AOC, which is listed on the Toronto Stock Exchange (TSX) and Nasdaq-Stockholm, now holds an operated 26.25% interest in Block 3B/4B, with Eco retaining 20% and Ricocure (Pty) Ltd of South Africa 53.75%.

An independent review of the prospective resources and exploration prospects within the block has established that it has some 4bn barrels of oil equivalent (boe), AOC said. The company and its partners are moving forward with plans to conduct a drilling campaign and are in discussions with potential partners to farm out a share of their working interest in the asset.

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