Eco (Atlantic) Oil and Gas Ltd Announces Strategic Partnership with Navitas Petroleum

Executive Summary

• Eco Atlantic entered a binding Framework Agreement with Navitas Petroleum, receiving US$2 million upfront and granting Navitas exclusive options to farm‑in to the Orinduik Block (Guyana) and Block 1 CBK (South Africa).
• Upon exercise, Navitas will pay an additional US$2.5 million for an 80% working interest in Orinduik and US$4 million for up to a 47.5% interest in Block 1 CBK; Eco’s remaining interests will be carried on a cost‑capped basis (US$11 m and US$7.5 m respectively).
• The partnership also provides Navitas with optional rights to acquire at least 25% of Eco’s other offshore assets and to co‑invest on a 50:50 basis in future ventures, creating a long‑term growth catalyst for Eco Atlantic.

Key Details

• Framework Payment: US$2 million paid by Navitas to Eco Atlantic on 3 Dec 2025.
• Orinduik Option:
• Exercise window – 12 months; exercise price – US$2.5 million.
• Grants Navitas 80% working interest and operatorship; Eco retains 20% carried interest (capped at US$11 m net to Eco, excluding mobilisation costs).
• Block 1 CBK Option:
• Exercise window – 6 months; exercise price – US$4 million.
• Grants Navitas up to 47.5% working interest and operatorship; Eco’s remaining interest (up to 47.5%) carried (capped at US$7.5 m net to Eco).
• Additional Assets Option: Navitas may acquire ≥25% of Eco’s other offshore holdings (PEL97, PEL99, PEL100 in Namibia; Azinam Limited’s Block 3B/4B in South Africa) for a minimum five‑year term, extendable to ten years if either option is exercised.
• Future Assets Option: Navitas can join Eco on a 50:50 basis in any new ventures or acquisitions identified by Eco, with the right to acquire at least 50% of Eco’s interest on comparable terms.
• OrangeBasin Energies Sub‑Option (Block 1 CBK):
• Eco (via Azinam SA) signed an exclusive option with OrangeBasin for a further 20% participation; consideration – US$500k on exercise, US$500k on completion, and US$3.8 million payable in cash or common shares at Eco’s discretion.
• Navitas may reimburse Eco proportionally if it elects to participate. Shares issued would be priced based on prevailing market price; lock‑up period of 6 months applies.
• Use of Proceeds: Option payments will fund licence work programmes across Eco’s portfolio and support identification/assessment of new exploration opportunities.
• Strategic Rationale (CEO Quote): “This partnership is transformational… it accelerates growth across our portfolio, providing the financial capacity and technical expertise needed to unlock the full potential of our assets in South Africa and Guyana.”

Notable Quotes

“The proposed Guyana and South Africa farm‑ins, together with our long‑term collaboration, significantly enhances our ability to accelerate growth… Navitas’ leadership, technical strength, operational expertise, and financial capacity provide exactly the strategic support needed to unlock the full potential of our assets.” – Gil Holzman, President & CEO, Eco Atlantic.