Eco Atlantic receives independent Leads Report of 9.2 billion barrels best estimate on Guy Block, Walvis Basin, offshore Namibia

Independent Gross Prospective Report on Guy Block Includes (P50) Best Estimate:
Seven Leads - 9.2 Billion Barrels. Brings Eco Atlantic's (P50) Estimate to 18 Billion Barrels

TORONTO, May 22, 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 the Company has received an independent Lead Report for blocks "2111B" and "2211A" collectively the "Guy Block" in the Walvis Basin, offshore Namibia, including a (P50) Best Estimate of 9.2 Billion barrels of gross prospective oil. The report was prepared by qualified independent reserves evaluator Gustavson Associates LLC ("Gustavson") of Boulder, Colorado in accordance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). This report complements the Leads Reports on Eco Atlantic's other offshore blocks in the Walvis Basin, ("Sharon" and "Cooper") bringing the Company's total best estimate prospective resources offshore Namibia to approximately 18 Billion barrels.

Gustavson conducted an assessment of the Gross Prospective Resource as of May 21, 2012. The data provided, includes recently acquired 2D seismic data and reports from four wells that were drilled in the vicinity of the block. The interpretation of 675 line kilometers of 2D seismic data acquired from WesternGeco and TGS over the Guy Block has produced seven leads.  The leads, which are interpreted from structures with associated faults in the Cretaceous and Tertiary aged section, and are up to 150 meters thick.

Gil Holzman, President and Chief Executive Officer of Eco Atlantic commented: "This very significant report is the culmination of a year of evaluation and interpretation of our Namibian offshore assets. The completion of the NI 51-101 Leads Report on Guy, further defines our exploration efforts in Namibia. Our operator, Kinley Exploration LLC from USA, has worked closely with the independent Engineer (QP), Gustavson Associates of Colorado, our local team in Namibia, and our local partner NAMCOR (National Namibian Petroleum Corporation) in completing this phase of interpretation. Establishment of the P50 report on the Guy block of over 9 Billion barrels defines Eco Atlantic now with leads of 18 Billion barrels of oil offshore Namibia together with Sharon (7.8 Billion) and Cooper (1.15 Billion) blocks. This is indeed an exciting time for the Company and as we move forward to define these leads with 3D we are continuing to establish Eco Atlantic as one of the most significant explorers in Western Africa. I am proud of our team and the path we have set for the Company in the last year."

"Namibia seeks to host a world class discovery in the near term" says Colin Kinley, Chief Operating Officer of Eco Atlantic and Chief Executive Officer of Kinley Exploration LLC. "The SW Atlantic Margin of Western Africa is distinct from the coastal basins to the north, including the recently drilled Namibe Basin. Being relatively early into the play we have had our choice of the basins and we have selected to focus on the Walvis Basin, based on a number of factors we define into the high prospectivity for oil. Our work over the past year on Cooper, Sharon and Guy has been extensive. This lead report defines the significant hydrocarbon potential on Guy. The seven leads we have evaluated here, along with those on the Cooper and Sharon blocks, will help to define the direction of the 3D survey work we are currently planning for this fall."

Based on probabilistic analysis, the Estimated Gross Prospective Resource by lead for the Guy Block is summarized in the table below:

Gross Prospective Resource Estimates by Lead

(MMBO = Million barrels of oil)

The estimates in this report have been prepared in accordance with the definitions and guidelines set forth in NI 51-101. The estimates do not include considerations for the risk of failure in exploring for these resources. Copies of the report are available on SEDAR (www.sedar.com and on the Eco Atlantic website www.ecooilandgas.com)

"Prospective Resources" are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective Resources have both an associated chance of discovery and a chance of development. Prospective Resources are subdivided in accordance with the level of certainty associated with recoverable estimates assuming their discovery and development and may be sub-classified based on project maturity. The prospective resources included in this Resource Report have been estimated using probabilistic methods and there is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources. If a discovery is made, the probability that the potentially recoverable volumes will equal or exceed the estimated amounts is 90% for the low estimate, 50% for the best estimate and 10% for the high estimate.

The Guy Block covers 10,000 square kilometers (2,471,000 acres) and is situated within the Walvis Basin which is located offshore Namibia on the west coast of southern Africa, south of Angola, North of South Africa, and west of Botswana. Eco Atlantic holds 70% working interest and partners Azimuth Ltd. hold 20% working interest, subject to government approval, and will fund 40% of the cost of 3D seismic surveys, and NAMCOR hold a 10% carried interest in the license.

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

CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS: Certain information in this press release constitutes forward-looking statements under applicable securities law. Any statements that are contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expects" and similar expressions.  Forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with oil and gas production and exploration, marketing and transportation; loss of markets; volatility of commodity prices; currency and interest rate fluctuations; imprecision of reserve estimates; environmental risks; competition; inability to access sufficient capital from internal and external sources; ability to obtain government and regulatory approval; changes in legislation, including but not limited to income tax, environmental laws and regulatory matters. Readers are cautioned that the foregoing list of factors is not exhaustive.

In addition, statements relating to "resources" or "prospective resources" are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions, 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. 

Although Eco Atlantic believes in light of the experience of its 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 reasonable, undue reliance should not be placed on them because Eco 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 publicly or revise any forward- looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

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