Navitas Petroleum farms into Block 1 CBK
Summary by AI BETAClose X
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 additional interest |
47.5% |
47.5% |
5.0% |
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 |
|
|
Strand Hanson (Financial & Nominated Adviser) |
+44 (0) 20 7409 3494 |
|
James Harris, James Bellman, Edward Foulkes |
|
|
Canaccord Genuity (Joint Broker) |
+44 (0) 20 7523 8000 |
|
Henry Fitzgerald-O'Connor, Charlie Hammond, Rory Blundell |
|
|
Berenberg (Joint Broker) |
+44 (0) 20 3207 7800 |
|
Matthew Armitt |
|
|
Celicourt (PR) |
+44 (0) 20 7770 6424 |
|
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 km2 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 km2 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 37,510km2.
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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