Eco (Atlantic) Oil & Gas Ltd has secured extensions across all four of its Namibian petroleum exploration licences and agreed to farm out its entire 85% stake in PEL 98, known as the Sharon Block, to Lamda Energy, a wholly Namibian-owned company.
The Ministry of Mines, Energy and Industries has granted a one-year extension to the Initial Exploration Period for PELs 97, 98, 99 and 100, now running until September 2026.
The extensions also provide for an optional two-year First Renewal Period, a further one-year extension, and a two-year Second Renewal Period.
Eco said the new framework allows it to focus on unlocking hydrocarbon potential in its deeper water blocks while continuing to support local ownership.
The company confirmed it is in discussions with potential partners on further farm-downs and seismic operations.
As part of the changes, Eco has agreed to farm out its 85% stake in PEL 98 to Lamda Energy, pending ministerial approval. Lamda, a privately owned Namibian operator with an experienced offshore team, will assume all obligations and liabilities for the block.
The agreement includes an upfront payment to cover administrative costs and provisions for Eco to receive up to US$2 million (about N$37 million) if Lamda later farms out part of its stake to a third party. Eco will also retain a board seat to oversee the transition.
Eco noted that the deal aligns with its commitment to local participation, recalling its 2011 proposal for NAMCOR to hold a 10% carried interest and the 2021 addition of a further 5% carried local partner on each block.
The updated work programmes include 3D seismic reprocessing on PEL 97 and ~1,000 km² 3D seismic surveys and processing on PELs 99 and 100.
The Ministry of Environment, Forestry and Tourism issued an Environmental Clearance Certificate on 15 June 2025, permitting seismic activities across Eco’s licences in the Walvis Basin.
“These developments represent an important step in our tactical vision and an optimisation of our Namibian portfolio and work programmes. Their support has been instrumental in the alignment of our efforts on our deeper water PELs 97, 99 and 100 which have been the recent focus of industry partners. With these licence extensions and updated work programmes, we are now well-positioned to unlock further value in Namibia,” Eco President and CEO Gil Holzman said.
