Eco (Atlantic) Oil & Gas Ltd, the independent oil and gas exploration company with licences in Guyana and Namibia, through its wholly-owned subsidiary Pan Africa Oil Namibia Holdings (Pty) Ltd (PAON Holdings), has acquired the remaining 10 per cent stake of Pan Africa Oil Namibia Ltd (PAO Namibia) from Amis Oil and Gas Ltd
Following completion of the acquisition, PAO Namibia will be a wholly owned subsidiary of Eco Atlantic.
Under the terms of the acquisition, Eco will issue 300,000 common shares to Amis (Consideration Shares). Amis has agreed not to dispose of the Consideration Shares for a period of 181 days following their issuance. The closing of the acquisition is conditional upon TSX regulatory approval and admission of the Consideration Shares to trading on AIM.
As a result of the acquisition, Eco will hold 100 per cent of the issued share capital of PAO Namibia and, in turn, an 80 per cent working interest (previously 72 per cent) in the Tamar License (PEL 050). The remaining 20 per cent working interest in the Tamar License is divided equally between the National Petroleum Corp of Namibia (NAMCOR) and Spectrum Geo Ltd.
The Tamar License covers approximately 7,500 sq km offshore Namibia and is located in license areas 2211B and 2311A in the economic waters of Namibia and is directly adjacent to PEL 71 which is expected to be drilled by Chariot Oil and Gas Ltd and AziNam Ltd next month.
The application will be made for the admission to trading on AIM of the Consideration Shares. Admission is expected to take place at 8.00am on 25th September 2018.
Following Admission, the issued share capital of the Company will consist of 159,495,217 common shares. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the FCA's Disclosure Guidance and Transparency Rules.
Gil Holzman, president and CEO of Eco Atlantic, commented, “Following the company's acquisition of the minority interest in Eco (Atlantic) Guyana Inc. announced earlier this year, this transaction further simplifies our corporate structure, and aligns all stakeholders into the ultimate parent company thus enables us to better manage each of our subsidiaries and their respective held licenses in preparation for future potential developments and transactions.”