Eco Atlantic Oil & Gas is on course to assume operatorship of Block 1 in the Orange Basin offshore South Africa following a farm-in agreement with Tosaco Energy.
The company, through its subsidiary Azinam South Africa, is finalising Section 11 regulatory approval to complete the transfer of a 75% working interest in the block.
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This positions Eco Atlantic as a significant player in the region, with the acquisition of extensive seismic data and well logs from the Petroleum Agency South Africa enhancing the block’s prospectivity.
The acquired data includes two 3D seismic surveys covering a total of 3,500km² and more than 20,000 line kilometres of 2D seismic, along with logs from three key exploration wells: AF-1, AO-1 and AE-1.
These wells, drilled in the late 1980s, have provided valuable insights into the block’s gas and oil potential.
AF-1 confirmed a gas discovery with tested flow rates of 32.4 million standard cubic feet per day, while AE-1 encountered gas shows and oil indications.
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By GlobalDataAO-1 contributed essential stratigraphic data and reservoir markers.
Spanning 19,929km², Block 1 extends from the shore to deep water, with water depths ranging from approximately 200m to 1,000m. This diverse range allows for exploration of multiple play types within the block.
Eco Atlantic co-founder and COO Colin Kinley said: “The Orange Basin has rapidly emerged as one of the most compelling hydrocarbon fairways globally, with recent multi-billion-barrel discoveries adjacent in Namibia extending directly into the geological runway of Block 1.
“This asset provides Eco with material exposure across a full-margin basin play ranging from proven, gas-rich inboard sections to oil-prone targets in the deep-water and ultra-deep-water domain.”
The geological features of Block 1 are considered similar to the nearby Kudu gas field and are in proximity to recent significant discoveries by industry peers such as Galp Energia, Shell, TotalEnergies and Rhino Resources.
Upon receiving the final regulatory nod, Eco Atlantic will not only gain operatorship but also the ability to proceed with the existing Exploration Right Budget and Work Plan.
This plan currently does not require field operations, meaning that the company can advance its interpretation and technical work without the immediate need for additional environmental permits.
Kinley added: “This strategic acquisition of high-quality 2D and 3D seismic, along with historic well logs deliver massive value to the company. This acquisition is currently conservatively estimated to replace $50m–$60m in acquisition costs required for new exploration.
“The data quality enables us to aggressively pursue subsurface interpretation and prospect ranking immediately. This dataset provides a robust foundation for accelerated prospect maturation and the opportunity to consider potential farm-out and partnership conversations.”
