Eco Atlantic Nears Operatorship of Block 1 in South Africa’s Orange Basin

AIM-listed and Canadian-based oil and gas company Eco (Atlantic) Oil & Gas is moving closer to finalizing the acquisition of a 75% working interest and operatorship in Block 1, a vast exploration asset located in South Africa’s Orange Basin, along the Namibian border.

According to a recent company update, Eco is in the final stages of receiving regulatory approval required to formalize the transfer of the interest from Tosaco Energy and secure operatorship. Once approved, Eco will control a strategic 19,929 km² block spanning from shallow continental shelf zones to ultra-deepwater zones nearly 263 kilometers offshore.

“The Orange Basin has rapidly emerged as one of the most compelling hydrocarbon fairways globally,” said Colin Kinley, Co-Founder and COO of Eco Atlantic. “Block 1 offers exposure to a full-margin basin, with gas-rich zones inboard and oil-prone targets offshore.”

A Strategic Leap in South Africa’s Energy Landscape

Eco acquired the interest through its wholly owned subsidiary, Azinam South Africa, under a farm-in agreement announced in June 2024. The block’s geological continuity with Namibia’s billion-barrel Orange Basin discoveries makes it one of the region’s most attractive prospects. Notably, Namibia has already hosted major finds by Shell, TotalEnergies, and Galp.

Robust Historical Data Cuts Exploration Costs

Eco has bolstered its technical advantage by purchasing an extensive dataset from the Petroleum Agency South Africa (PASA). This includes:

• 3,500 km² of 3D seismic

• 20,000 km of 2D seismic

• Well logs from AF-1, AO-1, and AE-1 drilled by Soekor in the 1980s

These assets include a confirmed gas discovery at AF-1, oil shows at AE-1, and valuable stratigraphic markers from AO-1, providing a head start in identifying and de-risking prospects.

“The data quality allows us to immediately proceed with subsurface interpretation and prospect ranking,” said Kinley. “It’s a cost-saving equivalent of $50–60 million and accelerates our pathway to farm-outs and drill decisions.”

Focused Growth Strategy in Southern Africa and Beyond

The acquisition fits into Eco’s broader strategy of disciplined, data-driven exploration. Beyond Block 1, Eco is active in:

• Guyana: Negotiating drilling partnerships in the Orinduik Block, where Eco expanded its stake in 2023

• Namibia’s Walvis Basin: Holding four licenses now attracting major industry interest

• Blocks 3B/4B in South Africa: Where Eco maintains a 5.25% carried interest, operated by TotalEnergies

The company’s expansion into Southern Africa aligns with a wave of global attention focused on the Orange Basin. Recent discoveries by Galp, Rhino Resources, and previous successes by Shell and TotalEnergies have firmly positioned the basin as the next global energy hotspot.

While Eco’s current program does not yet require environmental permitting—since no field operations are involved—it sets the stage for future high-impact wells and potential joint ventures.

The regulatory approval for Block 1 operatorship is expected shortly, marking a major milestone for Eco and further igniting interest in South Africa’s offshore energy prospects.

{Source: Off Shore Energy}

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