Tullow Oil has agreed to acquire up to a 40% working interest in Block 2012A, situated in the Walvis Basin offshore Namibia, from Eco (Atlantic) Oil & Gas.
Eco Atlantic has executed a farm-out agreement with Tullow Oil’s subsidiary Tullow Kudu for the Cooper Block.
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Eco Atlantic said the farm-in, in conjunction with its prior farm-out to Azimuth for 20%, nets the company a 100% carry of entire costs on an expanded 1,000km² 3D seismic survey and interpretation.
Tullow has committed to a full carry of all costs to drill an exploration well on the block depending on the establishment of a target from the seismic programme, which is expected to start in the fourth quarter of 2014.
Eco Atlantic will first transfer a 25% working stake in the Cooper Block to Tullow in return for a carry of its share of costs to undertake and process the seismic programme.
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It also includes the reimbursement of 25% of Eco Atlantic’s past costs in an amount of approximately $1m.
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By GlobalDataAfter the first transfer, if Tullow elects to participate in the drilling of an exploration well on the block, the company will be transferred an additional 15% working interest.
Eco Atlantic will remain operator until the second transfer, when Tullow will be appointed operator of the block.
Eco Atlantic currently owns a 70% working interest in the block while AziNam and the Namibian national oil company NAMCOR hold a 20% and 10% working interest respetively.
Eco Atlantic president and CEO Gil Holzman said: "We are delighted to welcome Tullow to partner with us on this block and to join our other partners, AziNam and NAMCOR.
"Now that Cooper’s exploration is funded, we will continue to review further partnerships across our portfolio."
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