Eco Atlantic Receives Approval and Completes Farmout Transaction

OREANDA-NEWS. Eco (Atlantic) Oil & Gas Ltd. ("Eco Atlantic" or the "Company") (TSX-V:EOG, NSX:EOG) is pleased to announce that further to its Press Release dated January 5th, the Company through its wholly-owned subsidiary, Eco Oil and Gas (Namibia) (Pty) Limited, has received all regulatory approvals from the Ministry of Mines and Energy of Namibia and has completed the transaction pursuant to the Amended and Restated Farmout Agreement (the "Agreement") with AziNam Limited ("AziNam"), amending and restating the terms of the farmout agreement dated April 12, 2012, among the parties.

Pursuant to the Agreement, the Company will receive a total of CADUSD 4.2 million in cash. In addition to the cash, the Company will shift upcoming cost obligations to its partner, without reducing exploration activities on its petroleum blocks, in conjunction with the farmout of a portion of each of its Cooper, Sharon and Guy Licenses in the Walvis Basin, offshore Namibia.

The cost obligations and ownership of the blocks are now as follows:

Note: Eco Atlantic is fully carried through the new Guy Block 1,100 Km 2D Survey and the 3,000 Km of recent 2D acquired on Sharon License

Gil Holzman, CEO of Eco Atlantic stated: "The completion of this farmout transaction with our long term partners, AziNam, is a part of our strategy to actively operate and explore our blocks at a very low to zero cost, and at the same time generate a substantial treasury balance. With the restrained outlook taken by the world markets as a result of the recent fall in oil prices, we have affected a self-strengthening strategy that maintains mid- long term value. Following the recently completed Pan African Oil merger, and the acquisition of that company's assets and cash, coupled with the cash from this farmout transaction with AziNam, the Company is in a very healthy financial positon. The combination of these two transactions will contribute an additional USD 7.3m dollars to our treasury (and over USD 9m in total), and stabilizes recent market jitters with respect to the Company. We have also recently significantly reduced cost overhead without diminishing our core strengths, as well as increased our carry on our licenses. This shift in work obligations puts us in a very low cost obligation position. I am thankful to our partners at AziNam and together with our valued partners, Tullow Oil, we have an excellent team to execute on our full portfolio of Namibian Licenses. We see great value not only in our cash position, but even more so in our carried position on our blocks. We are proud of our management's ability to execute on these transactions and to position the company and its shareholders to benefit from an improvement in the environment and an oil discovery offshore Namibia."