Acquisition of outstanding minority interest in PAO Namibia, holder of Tamar Block
Eco (Atlantic) Oil & Gas Ltd. (AIM: ECO, TSX-V: EOG), the independent oil and gas exploration company with licences in highly prospective regions in Guyana and Namibia, is pleased to announce that, through its wholly owned subsidiary Pan Africa Oil Namibia Holdings (Pty) Ltd. ("PAON Holdings"), it has acquired the remaining 10% of the shares of Pan Africa Oil Namibia Ltd ("PAO Namibia")from Amis Oil and Gas Ltd ("Amis") (the "Acquisition"). Following completion of the Acquisition, PAO Namibia will be a wholly owned subsidiary of the Company.
Pursuant to the terms of the Acquisition, Eco will issue 300,000 common shares to Amis (the "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% of the issued share capital of PAO Namibia and in turn an 80% Working Interest (previously 72%) in the Tamar License (PEL 050). The remaining 20% Working Interest in the Tamar License is divided equally between NAMCOR (the National Petroleum Corp. of Namibia) and Spectrum Geo Ltd.
The Tamar License covers approximately 7,500 square kilometres 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.
Application will be made for the admission to trading on AIM of the Consideration Shares.
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:
"We are very pleased to announce the completion of this transaction, which simplifies our corporate structure, bringing all of our subsidiaries under Eco