Independent Gross Prospective Report Includes (P50) Best Estimate of 7.79 Billion Barrels of Prospective Oil
TORONTO, March 8, 2012 /PRNewswire/ – ECO (ATLANTIC) OIL AND GAS LTD. (TSX-V:EOG) Eco (Atlantic) Oil & Gas Ltd. (“Eco Atlantic” or the “Company”) is pleased to announce the Company has received an independent Leads Report for Blocks “2213A” and “2213B” collectively the “Sharon Block” offshore Namibia including a (P50) Best Estimate of 7.79 Billion barrels of prospective oil. The report was prepared by Gustavson Associates LLC (“Gustavson”) of Boulder, Colorado.
Gustavson conducted an assessment of the Gross Prospective Resource as of March 6, 2012. The data provided includes recently acquired 2D seismic data and reports from four wells that were drilled in the vicinity of the block. The interpretation of 605 line kilometers of 2D seismic data acquired from WesternGeco over the Sharon Block has produced two leads. The leads which are interpreted as sealed structures are identified as the “North Structure” and the “Wedge”.
Gil Holzman, President and Chief Executive Officer commented: “The completion of the NI 51-101 Leads Report on Sharon represents another significant milestone in our exploration efforts in Namibia. We have worked closely with our Operator – Kinley Exploration LLC, our local team in Namibia, and our local licenses partner NAMCOR (National Namibian Petroleum Corporation) in completing this phase of interpretation. We have managed to better understand the significant prospectivity of our shallow water (40m-200m) Sharon Block, with its two well defined leads. The qualitative and quantitative interpretations of these leads indicate well defined sealed structures with estimated prospective resource of 7.79 Billion barrels of oil. Establishment of the P50 leads allows us to proceed with confidence in initiating our 3D seismic program on the Block in order to better identify the drilling targets.”
The Estimated Gross Prospective Resource by lead for the Sharon Block is summarized in the table below
Gross Prospective Resource Estimates by Lead
The estimates in this 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 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 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. The prospective resources included in this Resource Report have been estimated using probabilistic methods and 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. If a discovery is made, the probability that the potentially recoverable volumes will equal or exceed the estimated amounts is 90% for the low estimate, 50% for the best estimate and 10% for the high estimate.
The Sharon Block covers 10,000 square kilometers (2,471,000 acres) and is situated within the Walvis Basin which is located offshore Namibia on the west coast of southern Africa, south of Angola, North of South Africa, and west of Botswana. Eco Atlantic holds 70% working interest and partners Azimuth Ltd. hold 20% working interest and will fund 40% of the cost of 3D seismic surveys, and NAMCOR hold a 10% carried interest in the license.
About Eco Atlantic
Eco Atlantic is an oil and gas exploration company focused on the new and bourgeoning petroleum opportunity in Namibia. Through its wholly owned Namibian subsidiary, Eco Namibia, it holds five petroleum licenses issued by the Government of the Republic of Namibia. Eco Namibia holds three offshore license blocks covering more than 25,000 square kilometers (6,177,000 acres). Eco Namibia also holds two onshore license blocks covering 30,000 square kilometers (7,413,000 acres). Eco Namibia enjoys a strong local presence, and has a longstanding relationship with the energy and oil and gas sector in Namibia and in the region. The terms and conditions of these licenses are regulated by agreements signed by Eco 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; 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 and 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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SOURCE Eco Oil & Gas (Atlantic) Ltd.