Monday 10 January 2022

Eco (Atlantic) Oil & Gas Ltd. (AIM: ECO, TSX ‐ V: EOG), the oil and gas exploration company focused on the offshore Atlantic Margins, announces today that it has signed a Memorandum of Understanding ("MOU") to acquire 100% of Azinam Group Limited ("Azinam") (the "Acquisition"), including Azinam's entire offshore asset portfolio, in return for a 16.65% equity stake in the enlarged Group on completion of the Acquisition.

Highlights

· Acquisition of a material offshore petroleum exploration asset base in Namibia and South Africa

· Consideration in the form of new common shares to Azinam Holdings Limited (the "Vendor") who will own 16.65% of the enlarged Group

· The Vendor will also be issued warrants in the Company, exercisable only upon a producible commercial discovery

· The transaction strengthens the Groups strategic partnership with Africa Energy and Africa Oil

· Clear drilling programme with an exploration well planned to be drilled on Block 2B - South Africa in H2 2022

· The deal is expected to complete by 31 January 2022 subject, inter alia, to the signing of a Share Purchase Agreement and satisfactory completion of due diligence by Eco and any requisite approvals

· Discussions are already underway with Eco's key existing stakeholders in relation to underwriting the funds required to participate directly in the 2022 Block 2B South Africa drilling programme.

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