/UCW/ TORONTO, ONTARIO, CANADA – Eco (Atlantic) Oil & Gas Ltd. (TSXV: EOG) ( “Eco Atlantic” or the “Company”) is pleased to announce that the Company has received an updated independent NI-51-101 Resource Report, (” Resource Report”) detailing the gross and net unrisked prospective resources for its’ Cooper, Guy and Sharon Blocks offshore Namibia. The report includes a gross best estimate of 4.5 Billion Barrels of prospective oil.
In addition, Eco Atlantic, as Operator of the Cooper Block, is contracting RBS – a locally owned specialized consulting firm in Windhoek, Namibia to assist in filing all the necessary permits and documentation during 2017, in order to get permits to drill offshore Namibia on the Cooper Block in the Walvis Basin.
The Resource Report was prepared by Gustavson Associates LLC (” Gustavson”) of Boulder, Colorado. Gustavson conducted an assessment of the gross prospective resource as of October 31, 2016. The data provided includes acquired 2D and the Blocks’ 3D programs seismic data, as well as reports from previous wells that were drilled in the vicinity of the Blocks. Based on probabilistic estimates, the Resource Report confirms a best estimate of gross unrisked prospective oil resources for Cooper, Guy and Sharon Blocks in Namibia of 4,546 Million Barrels of Oil (” MMBBls”), and net unrisked prospective oil resources to Eco Atlantic of 2,362 MMBBls.
Eco Atlantic has also commenced the process to obtain consents, permits and authorization certifications for predrilling, drilling and post drilling environmental support services. The drilling permits to be filed for Cooper License have an expected completion period of approximately eight months. Partners on the Cooper Block including Eco Atlantic, Tullow Oil, AziNam and NAMCOR have supported the engagement of the environmental consulting firm and the partners are continuing their refined interpretation of the recent 3D survey completed on the Block. An exact drilling location is not yet defined, however the parties concur that permits should be in place for second half of 2017.
Colin Kinley, Chief Operating Officer commented: ” Eco Atlantic continue s to progress in Namibia – we have been consistent in our exploration efforts, our research and our operations seeking to prove out the region. We have purposely partnered with Tullow’s highly experienced turbidite specialists and have had access to the vast geophysical expertise behind AziNam. Both teams have helped us derisk and have added to our knowledge base. As we narrow down our path towards drilling, our initial evaluation early days has been significantly refined. We have a nalyzed and corrected our error, including those of risking, tightened up our parameters of defining reservoir and seal , and now have a much better understand ing of the source rock itself. Our assumptions made and lessons learned have helped us to define a much greater level of maturity in the estimates applied and this updat ed Resource R eport defines that, and has given us the confidence to make the next steps towards drilling.”
Kinley added: ” We have not yet included our Orinduik Block in Guyana in this report. Together w ith our partner, Tullow Oil, who is Operator on this block, we have nearly completed our 2D analysis of all the existing data and we benefit from prior work completed by Tullow as well. Our 51-101 report does include an update on our Orinduik Block and confirms Tullow ‘s two of our leads on the block potentially in the Mean 900 Million Barrel range. We expect to refine and clarify theses leads , in the same formation of ExxonMobil’s L iza discovery , over the next year as we plan our 3D survey over the block and complete its interpretation. We hold a great deal of optimism in Guyana. Drilling and w ater d epth over these leads coupled with scale and economics make a compelling case for the C ompany.”
The Blocks detailed in the Resource Report consists of the Cooper Block (Block 2012A) PEL 30, Guy Block (east half of Blocks 2111B & 2211A) PEL 34, and the Sharon Block (west half of Blocks 2213 A & B) PEL 33.
The Cooper Block License covers an area of approximately 5,000 square kilometers (1,235,000 acres). ECO is designated as the Operator. The Cooper Block is located in an area where the water depth ranges from less than 100 meters to over 500 meters. All of the Cooper lead areas are within the 200 to 500 meter water depth range. Eco Atlantic is carried throughout the drilling of the first exploration well and the carry is subject to Tullow electing to proceed into the Second Exploration Renewal Period, and to the well cap amounts to $53m.
The Sharon Block License covers an area of approximately 5,000 square kilometers (1,235,000 acres). ECO holds a 60% WI and is designated as the Operator. The water depth at the Sharon Block ranges from 100 meters to 500 meters. Eco Atlantic will be carried for 20% of their share of the 3D seismic acquisition costs.
The Guy Block License covers an area of approximately 5,000 square kilometers (1,235,000 acres). Eco Atlantic holds a 50% WI and AziNam is the Operator. The water depth ranges from 1,500 to 3,000 meters. Eco Atlantic was being carried through the 3D acquisition and interpretation costs.
The estimates in the Resource Report have been prepared in accordance with the definitions and guidelines set forth in Canadian National Instrument 51-101, Standards of Disclosure for Oil and Gas Activities. The estimates do not include considerations for the risk of failure in exploring for these resources. Copies of the report are available on SEDAR ( www.sedar.com) and on the Eco Atlantic website ( www.ecooilandgas.com)
Prospective Resources are defined as “those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. Prospective Resources are further subdivided in accordance with the level of certainty associated with recoverable estimates assuming their discovery and development and may be sub-classified based on project maturity.” 2 There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources. The Low Estimate represents the P90 values from the probabilistic analysis (in other words, the value is greater than or equal to the P90 value 90% of the time), while the Best Estimate represents the P50 and the High Estimate represents the P10. The totals given are simple arithmetic summations of values and are not themselves P90, P50, or P10 probabilistic values.
About Eco Atlantic
Eco Atlantic is an oil and gas exploration company focused on the acquisition and development of unique upstream petroleum opportunities around the world. The Company’s objective is to identify technically merited prospective new and developing projects in frontier areas allowing low cost entry. In Guyana, the company holds the Orinduik petroleum license, partially carried by Tullow Oil, through our subsidiary Eco Atlantic Guyana.
In Namibia through wholly owned subsidiaries, the Company currently holds interests, some carried, in four offshore petroleum licenses in the Walvis Basin.
Eco Atlantic enjoys strong local presence in the countries in which it operates and has a longstanding relationship with the energy and oil and gas sectors throughout Africa and other maturing exploration plays internationally.
F orward Looking Statements
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS: Certain information in this press release constitutes forward-looking statements under applicable securities law. Any statements that are contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as “may”, “should”, “anticipate”, “expects” and similar expressions. Forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with oil and gas production and exploration, marketing and transportation; retention of and ability to attract Company personnel, regulatory approvals, loss of markets; volatility of commodity prices; currency and interest rate fluctuations; imprecision of reserve estimates; environmental risks; competition; inability to access sufficient capital from internal and external sources; changes in legislation, including but not limited to income tax, environmental laws and regulatory matters. Readers are cautioned that the foregoing list of factors is not exhaustive.
Although Eco Atlantic believes in light of the experience of its officers and directors, current conditions, expected future developments and other factors that have been considered appropriate that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because Eco Atlantic can give no assurance that they will prove to be correct. The forward-looking statements contained in this press release are made as of the date hereof and Eco Atlantic undertakes no obligation to update publicly or revise any forward- looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
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President and Chief Executive
Executive Vice President
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