Eco Atlantic Oil & Gas Ltd (LSE:ECO) has entered into an agreement to farm down a 37.5% working interest in South Africa’s offshore Block 1 CBK to Navitas Petroleum LP, which will become operator of the licence once regulatory approvals are secured and a US$4 million payment is completed.
Under the arrangement, Eco Atlantic will retain a 37.5% interest in the block while also benefiting from a capped US$7.5 million carry covering part of the work programme. The company may also adjust its retained position through an existing option agreement with local partner OrangeBasin Energies.
Strategic partnership expansion
The transaction further strengthens Eco Atlantic’s partnership with Navitas Petroleum, combining Eco’s exploration exposure across high-impact Atlantic Margin acreage with Navitas’ offshore production and development expertise gained in the U.S. Gulf and South Atlantic regions.
Management said the agreement is expected to reinforce Eco Atlantic’s balance sheet, reduce risk across its Atlantic Margin portfolio and support the advancement of exploration activity in South Africa.
The company added that the deal complements its broader collaboration with Navitas across projects in Namibia, the Falkland Islands and Guyana, supporting longer-term growth opportunities and shared-risk development strategies across its offshore assets.
More about Eco Atlantic Oil & Gas
Eco Atlantic Oil & Gas Ltd is an exploration-focused oil and gas company listed on both AIM and the TSX Venture Exchange. The group concentrates on offshore Atlantic Margin opportunities, with interests spanning Guyana, Namibia and South Africa.
Eco Atlantic targets low-carbon-intensity oil and gas developments located near established infrastructure, holding both operated and non-operated stakes across a portfolio of offshore petroleum licences in emerging energy markets.
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