REG - Eco (Atlantic) O&G - Navitas Petroleum farms into Block 1 CBK

Eco (Atlantic) Oil & GasAnnouncement

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RNS Number : 9897E  Eco (Atlantic) Oil and Gas Ltd.  20 May 2026

 

20 May 2026

 

ECO (ATLANTIC) OIL & GAS LTD.

("Eco," "Eco Atlantic," "Company," or together with its subsidiaries, the
"Group")

 

Navitas Petroleum exercises option to farm into Block 1 CBK, offshore South
Africa

 

Eco (Atlantic) Oil & Gas Ltd. (AIM: ECO, TSX ‐ V: EOG), the oil and
gas exploration company focused on the offshore Atlantic Margins, is pleased
to announce that, further to the Company's announcement on December 4, 2025,
it has signed a definitive agreement to farm down a 37.5% working interest
("WI") in Block 1 CBK offshore South Africa ("Block 1 CBK") to Navitas
Petroleum LP (acting through a subsidiary) ("Navitas") (the "Agreement"). The
Agreement is a key milestone in Eco's strategic framework agreement with
Navitas (the "Strategic Framework") which provided Navitas with an option to
farm-in to Block 1 CBK (the "Block 1 CBK Option").

 

Navitas has, following a review of geological data, now elected to exercise
the Block 1 CBK Option through the execution of a definitive farmout agreement
on May 19, 2026. The Agreement is conditional on receipt of customary
regulatory approvals, from the Petroleum Agency of South Africa and the TSX
Venture Exchange and receipt of US$4.0 million cash payment from Navitas to
Eco.  Upon completion Navitas will become the Operator of Block 1 CBK with
37.5% WI (and up to 47.5% pending exercise of the Eco-OrangeBasin Energies
option) upon completion of the transaction.

 

Eco will retain a remaining WI of 37.5% (and up to 47.5% assuming the exercise
of the option with OrangeBasin Energies referenced below). Eco will be carried
by Navitas for the work programme, the value of the carry being capped at
US$7.5 million net to Eco. The amounts carried by Navitas will be repaid via
Eco's share of proceeds from future production on the Block.

 

On December 3 2025, Eco, through its subsidiary Azinam South Africa Limited
("Azinam SA"), signed an exclusive option agreement with its local partner
OrangeBasin Energies (Pty) Ltd ("OrangeBasin Energies"), formerly Tosaco
Energy (Pty) Ltd, (the "Option Agreement") to acquire a further 20%
participating interest in Block 1 CBK for a cash and shares consideration as
detailed in the Company's announcement on December 4, 2025. Under the Block 1
CBK Option, Navitas has the right to acquire 50% of this option (representing
a 10% WI), which is exercisable at Eco's and Navitas' mutual consent and
discretion at any point throughout the term of the initial exploration period
expiring in February 2028.

 

The resulting ownership structure is therefore expected to be as follows:

 

 Scenario                                                                      Eco    Navitas  OrangeBasin Energies
 Current pre-completion position                                               75.0%  0.0%     25.0%
 Following completion of the Agreement                                         37.5%  37.5%    25.0%
 If the Option Agreement is exercised in full and Navitas acquires 50% of the  47.5%  47.5%    5.0%
 additional interest

 

Navitas, a publicly traded partnership, is actively engaged in offshore oil
and gas exploration and production, with a portfolio of established oil and
gas assets primarily in North America (U.S. Gulf of America) and the South
Atlantic (Falkland Islands). The partnership's flagship production asset is
the Shenandoah deepwater field in the U.S. Gulf, where Navitas holds a 49% WI
and which reached first production in July 2025. Navitas has also demonstrated
its ability to advance complex offshore developments efficiently toward first
oil, achieving FID on the Sea Lion development in the Falkland Islands in
December 2025. In January 2026, Navitas further expanded its South Atlantic
footprint through the execution of an agreement to acquire 65% WI in the PL001
North Falkland Basin Licence, alongside Eco Atlantic's planned acquisition of
JHI Associates to secure the remaining 35% interest. The strategic framework
between Eco Atlantic and Navitas is intended to create a highly complementary
partnership, combining Navitas' proven offshore exploration, development and
production capabilities with Eco Atlantic's diversified portfolio of
high-impact exploration acreage, providing a strong platform to organically
expand and grow a long-term exploration and production portfolio.

 

Gil Holzman, President and Chief Executive Officer of Eco Atlantic, commented:

"We are incredibly excited about the successful exercise of the Block 1 CBK
Option by Navitas, marking a significant advancement of our strategic
relations. This quick exercise of the option not only strengthens the bond
between Eco and Navitas but also propels us toward a promising future in South
Africa's offshore oil and gas landscape and puts us in an active and enhanced
exploration mode. Eco and Navitas' technical and operational teams have been
working closely to analyse this block and the wider region along with other
assets and areas of interest. Together, we are primed to leverage our combined
expertise and resources to maximise our potential in the region and beyond.

 

"Importantly, this agreement not only adds cash to our strong balance sheet,
but more importantly signifies the continued progress Eco has made in
advancing its projects. Building on our recent farm down to BP in Namibia, we
have now further deepened our strategic partnership with Navitas, working not
only in South Africa but also in highly prospective acreage offshore the
Falkland Islands in PL001, which Eco will gain further exposure to upon the
upcoming completion of our acquisition of JHI Associates Inc. Additionally,
Navitas also holds options to acquire 80% of Eco's interests in the Guyana
Orinduik Block where we are progressing advanced discussions with the
Government over the terms of the next exploration and appraisal stages,
offering scope for our partnership to extend further. Overall, these
milestones highlight how Eco has successfully executed its strategy of
de-risking its portfolio of world-class assets through partnering with
carrying, tier-one operators across the Atlantic Margins".

ENDS

 

For more information, please visit www.ecooilandgas.com or contact the
following.

 

 Eco Atlantic Oil and Gas                                         c/o Celicourt +44 (0) 20 7770 6424
 Gil Holzman, President & Chief Executive Officer

 Alice Carroll, VP Business Development & Corporate Affairs
                                                                   +44 (0) 20 7409 3494

 Strand Hanson (Financial & Nominated Adviser)
 James Harris, James Bellman, Edward Foulkes
                                                                  +44 (0) 20 7523 8000

 Canaccord Genuity (Joint Broker)
 Henry Fitzgerald-O'Connor, Charlie Hammond, Rory Blundell
                                                                  +44 (0) 20 3207 7800

 Berenberg (Joint Broker)
 Matthew Armitt
                                                                  +44 (0) 20 7770 6424

 Celicourt (PR)
 Mark Antelme, Charles Denley-Myerson

 

 

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.

 

 

About Eco Atlantic:

 

Eco Atlantic is a TSX-V and AIM-quoted Atlantic Margin-focused oil and gas
exploration company with offshore licence interests in Guyana, Namibia, and
South Africa. Eco aims to deliver material value for its stakeholders through
its role in the energy transition to explore for low carbon intensity oil and
gas in stable emerging markets close to infrastructure.

 

In Offshore Guyana, in the proven Guyana-Suriname Basin, the Company operates
a 100% Working Interest in the 1,354 km(2) Orinduik Block. In Namibia, the
Company holds Operatorship and an 85% Working Interest in three offshore
Petroleum Licences: PELs: 97, 99, and 100, representing a combined area of
22,893 km(2) in the Walvis Basin. In Offshore South Africa, Eco holds a 5.25%
Working Interest in Block 3B/4B and a 75% Operated Interest in Block 1 CBK, in
the Orange Basin, totalling approximately 37,510km(2).

 

Forward-Looking Information

This press release contains forward-looking information and forward-looking
statements within the meaning of applicable Canadian securities laws. All
statements other than statements of historical fact may be forward-looking
information, including, without limitation, statements regarding completion of
the farmout transaction with Navitas, receipt of required governmental,
regulatory and stock exchange approvals; the anticipated timing for completion
of the transaction; the anticipated transfer of operatorship of Block 1 CBK to
Navitas; the anticipated work program and exploration activities on Block 1
CBK; the potential exercise of rights and options relating to additional
participating interests in Block 1 CBK; the Company's planned acquisition of
JHI Associates Inc.; the advancement of exploration and appraisal activities
in Guyana;  and the Company's broader strategic and operational plans across
its asset portfolio.

 

Forward-looking information is often identified by words such as "expects",
"anticipates", "believes", "intends", "plans", "may", "will", "should",
"potential" or similar expressions. These statements are based on current
expectations, estimates and projections that involve a number of risks and
uncertainties.

Forward-looking information is based on certain assumptions, including, but
not limited to, the timely receipt of all required approvals (including TSX-V,
AIM and other regulatory approvals), the satisfaction of all remaining
conditions to completion of the Arrangement, and general economic and industry
conditions.

Actual results may differ materially from those expressed or implied by such
forward-looking information due to a variety of risks and uncertainties,
including, without limitation: the risk that the Arrangement may not be
completed as currently contemplated or at all; the inability to satisfy
closing conditions; changes in market and industry conditions; failure to
obtain the regulatory and governmental approvals required to support the
ongoing operational plans of Eco; and other risks disclosed in the Company's
public filings available on SEDAR+ at www.sedarplus.ca.

 

Readers are cautioned not to place undue reliance on forward-looking
information. The Company undertakes no obligation to update or revise any
forward-looking information except as required by applicable law.

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of
the European Union (Withdrawal) Act 2018, as amended by virtue of the Market
Abuse (Amendment) (EU Exit) Regulations 2019.

 

 

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