LONDON (ShareCast) - (Sharecast News) - Oil and gas exploration company Eco Atlantic confirmed on Friday that the 'Island Innovator' rig, owned by Island Drilling Company, had been released and mobilised.

The AIM-traded firm said the rig was now under contract to Eco and its joint venture partners, and would move on to the Gazania-1 well on Block 2B, 25 kilometres offshore the Northern Cape in South Africa's Orange Basin.

It said the rig was expected to arrive and spud by the end of September, subject to weather conditions.

The Gazania-1 prospect was targeting a 300 million barrel light oil resource, with the well set to take around 25 days to drill, and the joint venture partners planning to seal and plug the well after the test, with no equipment being left on the seafloor.

Eco said the partners had also approved the option to drill a sidetrack well contingent on a discovery in the main target.

The partnership over Block 2B comprises Eco Atlantic as the operator with a 50% working interest, Africa Energy with a 27.5% working interest, Panoro Energy subsidiary Panoro 2B with a 12.5% working interest, and Crown Energy with a 10% working interest.

In Namibia meanwhile, the company announced that it has signed joint operating agreements with Namcor - the National Petroleum Corporation of Namibia - over its four operated offshore petroleum licence interests in the country, being PEL 97 'Cooper', PEL 98 'Sharon', PEL 99 'Guy', and PEL 100 'Tamar'.

"We are excited to get underway with our drilling campaign at Block 2B in the Orange Basin offshore South Africa," said co-founder and chief operating officer Colin Kinley.

"A successful outcome at the Gazania-1 well has the potential to be transformational for Eco and our joint venture partners."

Kinley said the company was also pleased to have signed agreements with Namcor in relation to its offshore licences in Namibia.

"With all of the recent operational success we have seen recently in Namibia, we are excited to be one of the largest offshore licence holders in the region and look forward to working with Namcor to generate value for the benefit of all."

At 1228 BST, shares in Eco Atlantic Oil & Gas were up 2.71% at 29.38p.

Reporting by Josh White at Sharecast.com.

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