Page 10 - AfrOil Week 11 2022

AfrOil INVESTMENT AfrOil

More specifically, it will issue 20mn warrants of the Gazania-1 well offshore South Africa,
that can be exercised at a value of CAD1.00 each and following the signing of the rig contract
within 24 months of the date that the TSX Ven- earlier in the month we anticipate drilling to
ture Exchange approves the acquisition, plus commence in late Q3-2022. We look forward to
another 20mn that can be exercised at a value making further updates on our strategic acreage
of CAD1.50 each within 36 months of approval. in due course.”
(The intervals may be extended in the event that With the acquisition of Azinam, Eco Atlan-
no exploration wells are drilled at the blocks, the tic will gain a 50% stake in and operatorship of
statement noted.) Block 2B, as well as a 20% non-operating stake
Eco Atlantic and Azinam reached agreement in the 3B/4B block offshore South Africa. Both
on the acquisition in January of this year and licence areas are located in the Orange basin,
signed a sales and purchase agreement (SPA) with Block 2B in a shallow section where waters
the following month. The former company has range from 50 to 200 metres deep and Block
agreed to pay a fee of $50,000 and 350,000 com- 3B/4B covering a far wider expanse, with waters
mon shares to compensate a third party for its ranging from 300 to 2,500 metres deep. Block
advisory services with respect to the transaction. 3B/4B is operated by Africa Oil Corp. (Can-
Gil Holzman, the co-founder and CEO of ada), and Eco Atlantic expects the acquisition
Eco Atlantic, expressed satisfaction with his to strengthen its own partnership with that
company’s moves to finalise the deal. “We are company.
pleased to have completed this acquisition, sub- Eco Atlantic also stands to acquire Azinam’s
ject to final approval to issue the shares,” he said. non-operating stakes in three petroleum explo-
“We now own and operate a number of highly ration licences offshore Namibia – PEL 99, PEL
prospective licences in three of the most excit- 98 and PEL 97. Eco Atlantic is already serving as
ing regions for exploration in the world: Guyana, operator of the three sites and will see its work-
Namibia and South Africa. We continue to make ing interest in the licence areas rise to 85% when
strong progress towards the upcoming drilling it completes the takeover of Azinam. ™

Uganda set to see increased

investment in oil and gas sector

UGANDA INCREASED commercial interest in emerg-
ing oil- and gas-producing countries in Africa
will cause the amount of investment in Uganda
to increase in 2022 and beyond, the African
Energy Chamber (AEC) reported on March 10.
According to the chamber’s newly-pro-
duced 2022 outlook report, “The State of Afri-
can Energy,” the continent is set to see a massive
increase in capital expenditure as consumers
seek to secure supplies of oil and gas for domes-
tic use, while meeting demand for exports.
These investments will help Uganda become an
oil producer for the first time and also will help
the nation fill the gap left by a decline in yield
from the continent’s legacy producers, such as
Nigeria. Lake Albert Development Project and EACOP (Image: African Energy Chamber)
Uganda has approximately 6.5bn barrels of
oil in place (OIP), including 1.4bn barrels of made a final investment decision (FID) on the
recoverable reserves, as well as an estimated Lake Albert Development Project, which pro-
500bn cubic feet (14.2bn cubic metres) of nat- vides for the development of the Tilenga and
ural gas. Kingfisher oilfields.
Recent policy reforms by officials in Kampala This will not only facilitate development of
have opened the door for these resources to be the fields, which contain an estimated 1.2bn bar-
tapped by foreign companies, making them a rels of oil but also enable the establishment of an
more attractive proposition for international export route, the East Africa Crude Oil Pipeline
majors. (EACOP), by 2025. These developments come
Meanwhile, TotalEnergies and China after years of stagnation in the Ugandan energy
National Offshore Oil Corp. (CNOOC) recently market.

P10 www. NEWSBASE .com Week 11 16•March•2022