Canada-based oil and gas exploration company Eco (Atlantic) Oil and Gas has decided to acquire Pan African Oil in order to solidify its position as an explorer offshore Namibia
According to officials at Eco (Atlantic) Oil and Gas, the agreement would be deemed an “all-share” deal, which would save costs and strengthen its position as a dominant license holder offshore Namibia.
Pan African Oil, an Africa-focused oil and gas explorer, operates two licenses in offshore Namibia, which covers around 13,000 sq km. The company has already completed the first term work commitments for both licenses, and has found a potentially new prospective geological fairway.
The Canadian explorer Eco (Atlantic) Oil and Gas owns and operates four licenses in Namibia, three of which have more than 21.5bn barrels of prospective resources, covering over 28,500 sq km in the Walvis Basin.
However, for the acquisition to be deemed complete, Pan African Oil is yet to grant two-thirds shareholder approval to Eco (Atlantic) Oil and Gas along with a regulatory clearance, added officials from both companies.
The Canadian company decided to explore waters offshore Namibia, which is considered a politically low-risk country. In July 2014, Ghana granted the Eco (Atlantic) Oil and Gas parliamentary ratification to acquire a 50.51 per cent working interest in Deepwater Cape Three Points West Block that lies 15 km south of Tullow Oil’s Jubilee Field.