Eco (Atlantic) Oil & Gas has completed the farm down to Navitas Petroleum of a 37.5% interest in Block 1 CBK in the Orange Basin, offshore South Africa.

This follows receipt of regulatory approvals from the government of South Africa and the TSX Venture Exchange.

The two companies had conducted an extensive review of existing geological data for the 19,929-sq km concession, on the median line with Namibia.

Three exploration wells led to a gas discovery which tested 32.4 MMcf/d, with additional gas shows and indications of oil.

According to Eco, parts of the acreage are geologically analogous to both the Kudu gas field to the north, operated by BW Energy, and the light oil Mopane, Venus and Capricornus discoveries to the north-west.

Shell’s successful Merlin-1X exploration well, drilled earlier this year, is 70 km distant.

Eco now holds a 37.5% stake in Block 1 CBK, which could rise to 47.5% if an option with OrangeBasin Energies is exercised.

Navitas has assumed operatorship, also with a 37.5% interest which could again grow to 47.5% assuming the outcome of the Eco-OrangeBasin Energies option.