Eco (Atlantic) to farm out 60% of Namibian PELs

• Eco (Atlantic) Oil & Gas Ltd. signed a farm-out agreement on April 13, 2026, to sell a 60% participating interest in three offshore Namibian licenses (PEL97, PEL99, PEL100) to BP Namibia Energy Ltd.
• The transaction includes an immediate cash payment of US$2.7 million at closing.
• Potential additional consideration exists via put options: Eco may transfer an additional 10% interest per license in exchange for BP carrying the remaining costs, capped at a maximum aggregate of US$63 million net to Eco if all puts are exercised.
• Operatorship transfers from Eco to BP; Eco retains a 25% working interest in each license.
• Proceeds are designated for ongoing exploration across the Atlantic Margin portfolio and general working capital.
• Regulatory approval is required from Namibian authorities (Ministry of Industries, Mines & Energy) before completion.

• Positive Validation: Securing BP as an operator significantly de-risks the Namibian portfolio compared to Eco operating independently or with smaller partners like Navitas. This validates the geological potential of the Walvis Basin assets.
• Capital Efficiency: The deal reduces immediate funding exposure without equity dilution. However, the upfront cash (US$2.7 million) is modest relative to the current market capitalization (~$349 million), representing less than 1% of value immediately realized.
• Contingent Value: The US$63 million potential carry is highly contingent on future drilling success and regulatory approvals. It should not be valued as immediate cash flow in a risk-averse model.
• Market Context: The stock price has appreciated approximately 700% from the April 2025 low ($0.14) to current levels ($1.02). Much of the "derisking" narrative was priced in following the Navitas partnership (Dec 2025) and the US$10 million fundraising (Jan 2026). This news confirms the strategy but offers limited surprise upside given the recent run-up.
• Risk Mitigation: Transferring operatorship to a supermajor reduces execution risk on technical programs, though it also reduces Eco's control over asset development timelines.

• Overview: Eco (Atlantic) is an exploration and production company focused on offshore Atlantic Margin assets in Namibia, Guyana, South Africa, and the Falkland Islands.
• Flagship Projects:
  • Namibia (PEL97, PEL99, PEL100): Now operated by BP following April 2026 farm-out. High potential Walvis Basin acreage.
  • Guyana (Orinduik Block): Partnered with Navitas Petroleum; holds discoveries (Jethro-1, Joe-1) pending appraisal approval from government.
  • South Africa (Block 3B/4B & Block 1 CBK): Drill-ready assets with farm-out partners (OrangeBasin Energies, Navitas).
  • Falklands (PL001): Indirect interest via JHI Associates; Navitas farming in on this asset as well.