Eco (Atlantic) Oil and Gas Ltd. Announces Strategic Acquisition - Seite 4

Further information on the Acquisition

On completion of the Acquisition, Eco Atlantic will issue to the Vendor such number of new common shares in Eco as provides the Vendor with 16.65% of Eco's then Enlarged Share Capital. In addition, the Vendor will be issued warrants over new common shares in Eco, exercisable only in case of a producible commercial discovery on Block 2B or Block 3B4B, as follows: 20,000,000 warrants exercisable at a price of CAD$1.00 per share during the twenty-four month period immediately following Completion, and 20,000,000 warrants exercisable at a price of CAD$1.50 per share during the thirty-six month period immediately following the Completion, such exercise dates to be extended in the event a well is not drilled on Block 2B or Block 3B4B, until such time as a well is drilled on either Block and a producible commercial discovery declared.

In addition, the Vendor will enter into a lock-in agreement to restrict the sale of the consideration shares until the earlier of: the spudding of a well on Block 2B; or, 6 months following Completion in respect of a third of the consideration shares, with two equal further tranches being released from the lock-in 12 and 18 months following Completion

As at 30 September 2021, Azinam had total assets of approximately US$16 million, and in the nine months to 30 September 2021 recorded net income of approximately US$1.26 million.

A further announcement will be issued on closing of the Acquisition.

Drilling Planned 2022 Block 2B - South Africa:

With Operatorship and a 50% WI acquired in Block 2B, Eco joins block partners Africa Energy Corp. - 27.5% WI (Carried), Panoro 2B Limited - 12.5% WI and Crown Energy AB - 10% WI (Carried) (the "JV Partners").

Block 2B already has a previous light oil discovery - as there was an offsetting strat well, Soekor A-J1, drilled in 1988 that proved the presence of high quality oil in the area. Thick reservoir sandstones were intersected between 2,985 meters and 3,350 meters. The well was tested and flowed 191 barrels of oil per day of 36 degree API oil from a 10 meter sandstone interval at about 3,250 meters. The 686 square kilometre 2013 3D seismic data confirmed the up-dip prospectivity of the A-J1 discovery and significant further prospectivity.