Eco Atlantic receives the ministerial approval to farm out 20% of its licenses offshore Namibia to technical partner

TORONTO, May 31, 2012 /CNW/ – ECO (ATLANTIC) OIL AND GAS LTD. (TSX-V:EOG, NSX: EOG) Eco (Atlantic) Oil & Gas Ltd. (“Eco Atlantic” or the “Company“) is pleased to announce that Namibia’s Minister of Mines and Energy
has approved today, the assignment pursuant to the Farm-out Agreement
with Azimuth Ltd. (“Azimuth”) of Hamilton, Bermuda, an exploration and
production company backed by majority-owner Seacrest Capital Ltd. and
Petroleum Geo-Services ASA (“PGS”), (Farm-Out Agreement announced on
April 12, 2012).

With this final condition of the assignment being satisfied, Azimuth is
now a 20% registered working interest partner in each of Eco Atlantic’s
offshore Namibia licenses, namely the “Cooper License” (Block 2012A),
the “Sharon License” (Blocks 2213A & 2213B) and the “Guy License”
(Blocks 2111B & 2211A) (jointly, the “Licenses”) and will fund 40% of
the cost of 3D seismic surveys covering 2,500 square kilometers across
all three Licenses, the acquisition of which is expected to cost in
excess of US$25 million.

As a result of this transaction, Eco Atlantic’s interest will be 70%,
held through its wholly owned subsidiary, Eco Oil and Gas Namibia (PTY)
Ltd., Azimuth has a 20% interest, and NAMCOR will retain its 10%
carried interest. Eco Atlantic, through the project management group of
Kinley Exploration and Azimuth will be responsible for designing,
sourcing and operating all aspects of the 3D seismic program.

Gil Holzman, President and Chief Executive Officer of Eco Atlantic
commented, “Eco Atlantic is pleased to have received the final approval from the
Ministry of Mines and Energy of The Republic of Namibia to execute the
Farm-out Agreement, thereby securing the relationship with Azimuth as a
license and technical partner. We are ahead of schedule to initiate our
3D program together with Azimuth, so to better define the drilling
targets on our 9 billion barrels prospect Guy, 7.8 billion barrels
prospect, Sharon, and 1.15 billion barrels prospect, Cooper. The 3D
program, expected to commence later this year should enable us to
define each blocks’ drilling targets.”

About Eco Atlantic

Eco Atlantic is an oil and gas exploration company focused on the new
and bourgeoning petroleum opportunity in Namibia. Through its wholly
owned Namibian subsidiary, Eco Namibia, it holds five petroleum
licenses issued by the Government of the Republic of Namibia. Eco
Namibia holds three offshore license blocks covering more than 25,000
square kilometers (6,177,000 acres), in the Walvis Basin. Eco Namibia
also holds two onshore license blocks covering 30,000 square kilometers
(7,413,000 acres). Eco Namibia enjoys a strong local presence, and has
a longstanding relationship with the energy and oil and gas sector in
Namibia and in the region. The terms and conditions of these licenses
are regulated by agreements signed by Eco with the Government of the
Republic of Namibia in March 2011.

Forward Looking Statements

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that the resources and prospective resources described exist in the
quantities predicted or estimated and can be profitably produced in the
future.  There is no certainty that any portion of the resources or
prospective resources will be discovered.  If discovered, there is no
certainty that it will be commercially viable to produce any portion of
the resources. 

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officers and directors, current conditions and expected future
developments and other factors that have been considered appropriate
that the expectations reflected in this forward-looking information are
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Atlantic can give no assurance that they will prove to be correct. The
forward-looking statements contained in this press release are made as
of the date hereof and Eco Atlantic undertakes no obligation to update
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whether as a result of new information, future events or otherwise,
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SOURCE Eco Oil & Gas (Atlantic) Ltd.