Africa Oil Corp (AOIFF)

[douginil]

Africa Oil and Eco (Atlantic) Oil & GasAfrica Oil

Thanks to: Oilman Jim's Letter - 10 March 2024

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Interesting news from a number of companies last week. Eco (Atlantic) Oil & Gas (EOG.V ECAOF ECO.L EOI.F) announced it has signed a farm out agreement pursuant to which it will farm out a 13.75% participating interest in Block 3B/4B, offshore South Africa as part of an aggregate 57% farm down transaction along with its JV partners, Africa Oil (AOI.TO AOIFF AFZ.F) and Ricocure. Farmees are TotalEnergies (TTE TTE.L), which will become operator, and QatarEnergy. Upon completion, Eco will retain a 6.25% interest. The transaction has a maximum value, including carry, of up to US$32.1 million to Eco, which includes payments due to Eco from Africa Oil and Ricocure under previously announced agreements. The carry is expected to be adequate to fund Eco's share of drilling up to two wells on the licence.