Completion of Farm Down in Block 1 CBK offshore South Africa to Navitas
TORONTO, ONTARIO / ACCESS Newswire / September 22, 2026 / Eco (Atlantic) Oil & Gas Ltd. (AIM:ECO)(TSXV:EOG), the oil and gas exploration company focused on the offshore Atlantic Margins, is pleased to announce, further to the Company's announcements on December 4, 2025 and May 20, 2026, completion of its farm down of a 37.5% working interest ("WI") in Block 1 CBK offshore South Africa ("Block 1 CBK" or the "Block") and transfer of Operatorship of the Block to Navitas Petroleum LP (acting through a subsidiary) ("Navitas") (the "Farm Down") following receipt of the requisite regulatory approvals (Section 11) from the government of South Africa and the TSX Venture Exchange ("Completion").
Completion of the Farm Down, initially announced in May 2026, represents another key milestone in Eco's strategic framework agreement with Navitas (the "Strategic Framework") and follows an extensive review of the Block's existing geological data by both Eco and Navitas.
Block 1 CBK, which spans 19,929 km² offshore South Africa, directly abutting the Namibian border, has both oil and gas potential and benefits from three legacy exploration wells which confirmed a gas discovery with tested flow rates of 32.4 million standard cubic feet per day (MMscfd) as well as additional gas shows and oil indications. Certain prospectivity on the acreage is considered geologically analogous to both the Kudu gas field to the north and sits immediately southeast of recent light oil discoveries made by Galp Energia (Mopane), TotalEnergies (Venus), and Rhino Resources (Capricornus). The most recent, closest light-oil discovery to the Block is Shell's Merlin-1X exploration well (June-2026), which lies 70km away.
Following Completion, Eco now holds a 37.5% WI in Block 1 CBK (up to 47.5% assuming the exercise of the option with OrangeBasin Energies (Proprietary) Limited ("OrangeBasin Energies") referenced below) with Navitas assuming Operatorship of the Block with a 37.5% WI (up to 47.5% assuming the exercise of the Eco-OrangeBasin Energies option).
As part of the Farm Down, Eco has now also received a US$4.0 million cash payment from Navitas. Additionally, 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.
As detailed in the Company's announcement on December 4, 2025, 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, (the "Option Agreement") to acquire a further 20% participating interest in Block 1 CBK for a cash and shares consideration. 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 |
| Previous pre-completion position | 75.0% | 0.0% | 25.0% |
| Following Completion of the Farm Down | 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% |
Gil Holzman, President and Chief Executive Officer of Eco Atlantic, commented:
"Completion of the Block 1 CBK farm down marks another important milestone in our Strategic Framework with Navitas, extending our partnership into South Africa and demonstrating the value of our growing collaboration across multiple jurisdictions.
"Navitas is a highly experienced global operator and producer with an exceptional track record of developing offshore resources. Their expertise, tied with South Africa's growing need to bring new domestic gas supplies online to meet in-country demand, provides strong foundations to progress the development of Block 1 CBK's sizeable resources.
"Since announcing the Farm Down, our technical teams have worked closely together, and we look forward to a smooth operational transition to Navitas and continued collaboration with our partners and in-country stakeholders to advance Block 1 CBK and unlock further value from the licence.
"We are grateful to the Government of South Africa, and particularly the Petroleum Agency of South Africa for the smooth and efficient regulatory process, as well as to Navitas, our advisers and all those involved in reaching this milestone.
"More broadly, we continue to make good progress towards completing the other strategic transactions announced earlier this year, including the acquisition of JHI, the farm down of our Namibian licences to BP, and negotiations for a new PSA covering our Orinduik acreage in Guyana. Each is progressing well and remains on track for finalisation as guided during 2026, further strengthening and advancing Eco's portfolio across the Atlantic Margin."
**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, Rory Blundell, Charlie Hammond | |
| Berenberg (Joint Broker) | +44 (0) 20 3207 7800 |
| Matthew Armitt | |
| Celicourt (PR) | +44 (0) 20 7770 6424 |
| Mark Antelme, Charles Denley-Myerson |
About Eco Atlantic:
Eco Atlantic is a TSX-V and AIM-quoted Atlantic Margin-focused oil and gas exploration company with offshore license 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 Licenses: PELs: 97, 99, and 100, representing a combined area of 22,893 km2 in the Walvis Basin which on completion of the farm-down to BP will reduce to 25% in each licence. In Offshore South Africa, Eco holds a 5.25% Working Interest in Block 3B/4B and a 37.5% Working Interest in Block 1 CBK, in the Orange Basin, totalling approximately 37,510km2.
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SOURCE: Eco (Atlantic) Oil and Gas Ltd.
View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/oil-gas-and-energy/eco-atlantic-oil-and-gas-ltd.-announces-completion-of-farm-down-in-block-1-cbk-1225195
