Oil & gas pursuits in Guyana and South Africa on duo’s agenda as new partnership emerges

December 9, 2025, by Melisa Cavcic

Eco (Atlantic) Oil & Gas, an AIM-listed and Canada-headquartered oil and gas company focused on the Atlantic Margin, has put in place a new strategic partnership with Israel’s Navitas Petroleum, which revolves around a block off the coast of Guyana and another one offshore South Africa alongside future oil and gas cooperation.

The two companies have entered into a binding framework agreement, which will see Navitas pay Eco Atlantic $2 million to enter into an exclusive option agreement to farm into the Orinduik Block offshore Guyana and Block 1 CBK offshore South Africa.

The Orinduik option, which may be exercised within 12 months and upon payment of $2.5 million to the AIM-listed firm, enables the Israeli player to join the Orinduik Block, acquiring an 80% working interest and operatorship.

Navitas will carry Eco regarding the work to be performed at the block, which may include drilling an exploration well or appraising the Jethro-1 and Joe-1 existing heavy oil discoveries for potential development and commercialization.

On the other hand, the Block 1 CBK option, which may be exercised within six months and upon payment of $4 million to the AIM-listed company, enables the Israeli firm to acquire up to a 47.5% working interest and operatorship and will carry the Atlantic Margin-focused player’s share of the exploration work program in Block 1 CBK.

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The amounts carried by Navitas will be repaid via Eco’s share of proceeds from future production. The company will also have the option, subject to agreement on commercial terms at the time of exercise, to potentially acquire at least 25% of the AIM-listed player’s working interests, excluding the Guyana assets and Block 1 CBK, as well, assume operatorship in the rest of the petroleum assets held by the firm.

Gil Holzman, President and Chief Executive Officer of Eco Atlantic, commented: “The proposed Guyana and South Africa farm-ins, together with our understanding that this is a long-term collaboration, significantly enhances our ability to accelerate growth across our portfolio. Navitas’ excellent leadership team, technical strength, operational expertise, and financial capacity provide exactly the strategic support needed to unlock the full potential of our assets in South Africa and Guyana.

“Following a joint visit by our teams to Guyana later this month, we expect to gain clarity on our work programme and appraisal plan for Orinduik. We believe this partnership paves the way for our planned exploration and appraisal programmes on the block towards commercialisation, which will be carried and operated by Navitas, and will serve as a high-impact catalyst for the company.”

If there is no change in Eco’s asset portfolio beyond the farm-out of the Orinduik and Block 1 CBK assets, the remaining portfolio will include PEL97, PEL99 and PEL100 offshore Namibia and at least a 25% interest in Azinam, which holds Block 3B/4B offshore South Africa.

The option proceeds are expected to support direct license work programs across the portfolio and help identify and assess new oil and gas exploration assets and opportunities. As part of the strategic partnership, Eco intends to invite Navitas to join on a 50:50 basis, where appropriate, future new ventures and assets targeted and potentially acquired by the firm.

Eco, though its subsidiary Azinam South Africa signed an exclusive option agreement with its local partner, OrangeBasin Energies, formerly Tosaco Energy, to acquire a further 20% participating interest in Block 1 CBK for a cash and shares consideration.

Under the Block 1 CBK option, Navitas has the right to acquire 50% of this option, which is exercisable at the duo’s mutual consent at any point throughout the term of the initial exploration period expiring in February 2028.

Under the option agreement, if exercised in full, OrangeBasin Energies will receive $500,000 on exercise and $500,000 on completion as well as $3.8 million on completion which Eco will have the right to settle in cash or common shares at its sole discretion.

If Navitas elects to participate in such option, it will reimburse Eco for its proportion of the exercise cost. Upon completion, OrangeBasin Energies’ remaining 5% retained interest will be carried by Eco and Navitas for the exploration right period, including drilling up to two contingent exploration wells.