Eco (Atlantic) Oil & Gas Ltd., through its wholly-owned subsidiary, has closed the previously announced farm out transaction with Tullow Kudu Limited, a wholly owned subsidiary of Tullow Oil plc. (Tullow), including receiving all necessary Government of Namibia approvals, and the entering into an amended and restated joint operating agreement (JOA) with Tullow, the National Petroleum Corporation of Namibia (NAMCOR), and Azimuth Namibia Ltd (Azinam).
As described in the Company's news release dated July 17, 2014, the Company and Tullow have entered into a Farm-Out Agreement (the "Farm-Out Agreement"), pursuant to which Tullow agreed to acquire up to a 40% working interest in the Company's Cooper block (the "Block").
With the signing of the JOA, all of the conditions in the Farm-Out Agreement with respect to the initial transfer of a 25% working interest in the Block have been satisfied. Eco Atlantic expects to receive a contribution of its past costs in the amount of approximately CAD$1 million. Eco Atlantic now holds a 45% carried working interest in the Block, Azimuth holds a 20% working interest, NAMCOR holds a 10% carried working interest and Tullow holds a 25% working interest.