Eco Atlantic Oil & Gas Ltd (LON:ECO) told investors it has successfully negotiated the reissue of four licences in the Walvis Basin, offshore Namibia.
The licences awards remain conditional subject to customary final government signature, the company added.
It negotiated the reissues and the establishment of a new 10-year life cycle for each of the four new Petroleum Exploration Licenses (PELs).
NAMCOR, Namibia's National Petroleum Corporation, retains a 10% interest in each PEL and local Namibian business partners will have 5%.
The Guy PEL, notably, has doubled in size through the process to now cover some 11,457 square kilometres. Eco is the majority partner at Guy, with a 47.2% working interest.
The group is the operator of the 5,788 square kilometre Cooper block, which is 54.3% owned by Eco. It is also the operator of the Sharon (56.7% owned) and Tamar (85%) blocks, spanning 5,700 square kilometres and 5,648 square kilometres respectively.
"Successfully renegotiating our four licences offshore Namibia and being awarded over 28,500 km2 in one of the most exciting exploration hotspots in the world is a significant milestone for Eco,” said Gil Holzman, Eco chief executive in a statement.
“Participation in the regional exploration with a number of the major IOCs now in Namibia, and having the Namibia Ministry of Mines and Energy acknowledge both our long term investment and our contribution to the fundamental exploration of the region, is very meaningful, both for us as a business and an explorer.”
He noted that Eco has made a significant investment in the offshore blocks in the Walvis Basin and has increased its substantial footprint to now hold the second-largest position, after ExxonMobil.
"The recent wildcat discoveries in South Africa and the entry into Namibia by ExxonMobil, Total, Qatar Petroleum and Shell over the last few years give us significant confidence that further discoveries will soon be made in Namibia,” Holzman said.
“Near term, we look forward to drilling campaigns planned by Total, Shell, M&P, and ExxonMobil. These companies are amongst the leading oil finders in the world. The new licenses represent a strategic value creation opportunity for Eco Atlantic, amid the increased interest in the area."