ONE YEAR EXTENSION GRANTED ON COOPER
TORONTO, Feb. 18, 2014 /CNW/ - Eco (Atlantic) Oil & Gas Ltd. ("Eco Atlantic" or the "Company") (TSX-V: EOG, NSX: EOG) is pleased to announce that it has received an updated Gross Prospective Unrisked Resource Lead Report ("Report") prepared by Gustavson Associates LLC ("Gustavson") of Colorado, USA, on Block 2012A ("Cooper") in the Walvis Basin, offshore Namibia. The Report was prepared in accordance with Canadian National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101") and supports a P50 Best Estimate of 4.5 billion barrels of gross prospective oil over the existing targets.
The Report evaluated an additional 700 Klms of 2D Seismic Data recently acquired by the Company, which also retained Petroleum Geo-Services (PGS) Geophysical of the UK to work with its internal team to complete a new detailed geological and geophysical interpretation of Cooper. Gustavson completed an assessment of the Gross Prospective Unrisked Resource as of February 18, 2014. The Report is based upon interpretation of over 1,450 line kilometers of 2D seismic and an analysis of the recent detailed report completed by PGS, on the block. The Report updates Gustavson's original lead report for Cooper, as published in February 2012.
Eco Atlantic also announces that in recognition of recent developments and work done on Cooper, and with Eco Atlantic's continued focus on research and near term operational plans, the Namibian Ministry of Mines and Energy has granted a one year extension to March 2016, of the Initial Exploration Period of the Cooper license. This extension brings Cooper's schedule in line with the respective timelines of the Company's other two blocks, Guy and Sharon, located in the Walvis Basin.
Colin Kinley, COO of Eco Atlantic stated, "We are pleased with the results of the recent work that we have conducted on Cooper. This report extends our understanding of the mechanics of the basin and reflects the importance of continued exploration through regional drilling and seismic efforts. Each bit of information adds to the matrix of data we have and moves us closer to discovery."
Based on probabilistic analysis, the Gross Prospective Unrisked Resources for the seven leads are summarized below:
| Oil in Place(1)
| Prospective Oil Resources
|Lead|| Low Estimate
| Best Estimate
| High Estimate
| Low Estimate
| Best Estimate
| High Estimate
(1) Oil in place does not represent a recoverable volume.
(2) Million barrels of oil
The Cooper license covers 5,800 square kilometers (1,433,000 acres) and is situated within the Walvis Basin, offshore Namibia. Eco Atlantic holds a 70% working interest in the Cooper license, Azimuth Ltd. hold 20% working interest, and the National Petroleum Corporation of Namibia (NAMCOR) hold a 10% working interest. The estimates in the Report have been prepared in accordance with the definitions and guidelines set forth in NI 51-101. The estimates do not include considerations for the risk of failure in exploring for these resources.
Gil Holzman, CEO of Eco Atlantic, stated from Windhoek, Namibia: "We are very happy that the opportunity we see in Cooper is better defined in this report. After extensive work by our operating team and the experts at PGS, and with the detailed analysis by Gustavson, the Report triples the potential oil that we have estimated in the leads on Cooper, thus making it an even more attractive drilling opportunity". Holzman added: "We appreciate the year extension for the shooting of 3D on Cooper by the Namibian Government. We have been able to refine our leads with this work and the imminent drilling planned by the owners of our neighboring blocks should help to even better define our 3D work planned for the fall season and to further attract potential partners."
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 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. Prospective resources have both an associated chance of discovery (geological chance of success) and a chance of development (economic, regulatory, market, facility, corporate commitment or political risks). The chance of commerciality is the product of these two risk components. The prospective resource estimates referred to herein have not been risked for either the chance of discovery or the chance of development. 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 (i.e. the value is greater than or equal to the P90 value 90% of the time), while the Best Estimate represents the P50 values and the High Estimate represents the P10. Actual resources may be greater or less than those calculated.
About Eco Atlantic
Eco Atlantic is an oil and gas exploration company focused on the new and bourgeoning energy play in Namibia. Through a wholly owned Namibian subsidiary ("Eco Namibia"), it holds four petroleum licenses issued by the Government of the Republic of Namibia. Offshore in the Walvis Basin, Eco Atlantic holds three license blocks covering more than 25,000 square kilometers (6,177,000 acres). Eco Atlantic holds an additional license block covering 23,000 square kilometers (5,683,000 acres) which includes both onshore and offshore areas. Founded in 2008, Eco Namibia enjoys a strong local presence and has a longstanding relationship with the energy and oil and gas sector in Namibia and the region. The terms and conditions of these licenses are regulated by agreements signed by Eco Namibia with the Government of the Republic of Namibia in March 2011.
Forward 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; 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; ability to obtain government and regulatory approval; 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.
Statements relating to "resources" and "prospective resources" are deemed to be forward-looking statements, as they involve the implied assessment that the resources described exist in the quantities predicted or estimated. This assessment is based on a number of assumptions, such as geological, technological and engineering estimates, and is subject to a variety of risks, uncertainties and other factors that could cause actual results to differ materially from those anticipated in the estimates. These uncertainties and risks include, but are not limited to: (1) the fact that there is no certainty that the zones of interest will exist to the extent estimated or that the zones will be found to have oil and/or natural gas with characteristics that meet or exceed the minimum criteria to make it commercially recoverable to the extent estimated; (2) the number of competitors in the oil and gas industry with greater technical, financial and operations resources and staff; (3) potential liabilities for pollution or hazards against which the company cannot adequately insure or which the company may elect not to insure; (4) contingencies affecting the classification as reserves versus resources which relate to the following issues as detailed in the Canadian Oil and Gas Evaluation Handbook: ownership considerations, drilling requirements, testing requirements, regulatory considerations, infrastructure and market considerations, timing of production and development, and economic requirements; and (5) other factors beyond the Company's control.
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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
SOURCE: Eco (Atlantic) Oil & Gas Ltd.
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