Eco’s takeover of JHI close to crossing the finish line

May 18, 2026, by Melisa Cavcic

Eco (Atlantic) Oil & Gas, an AIM-listed and Canada-headquartered oil and gas company focused on the Atlantic Margin, is closing in on the completion of its acquisition of the issued and to-be-issued shares it does not already hold in JHI Associates (JHI).

After Eco made a move to bring JHI Associates into its fold by way of a court-approved plan of arrangement, the latter obtained an interim order from the Ontario Superior Court of Justice to call, hold, and conduct the annual and special shareholders’ meeting and other procedural matters in connection with the previously disclosed binding agreement between the duo.

Following the JHI shareholders’ vote in favor of the merger on May 12, 2026, the company secured on May 15, 2026, the final order approval from the court, giving the go-ahead for the arrangement as proposed.

JHI’s shareholders’ approval next on the agenda to back Eco takeover

Business & Finance

Eco claims that the only remaining conditions for completion of the arrangement include receipt from the Falkland Islands Government (FIG) for a five-year licence extension of the PL001 licence and Navitas Petroleum LP’s operatorship; JHI to have a cash balance of $1 million on completion of the acquisition; and the required TSX-V and AIM approvals.

Upon closing of the transaction, the AIM-listed player expects to issue in aggregate up to 96,307,811 new common shares to JHI shareholders, who are entitled to convert them into Eco shares after presenting their original share certificate. The firm explains that approximately 41.5 million (45%) of these shares will be subject to lock-up arrangements spanning 18 months following completion.

In the aftermath of obtaining shareholder and court approval, the final steps are seen as administrative; thus, the transaction is expected to close as soon as the requisite government approvals are received, subject to the satisfaction of customary closing conditions under the arrangement agreement.

Gil Holzman, President and Chief Executive Officer of Eco Atlantic, commented: “Completion of the JHI acquisition is in its final stages and we are delighted with the positive outcome in the important milestones, being the overwhelming 100% shareholders vote and approval of the final order. The governmental approvals are expected imminently, and our teams are working hard to close as soon as practically possible once we receive these approvals.”

Afterward, Eco will hold 100% of the outstanding JHI shares and, in turn, a 35% participating interest in PL001 offshore Falkland Islands, operated by Navitas Petroleum via its subsidiary holding the remaining 65% interest, and a potential extension of JHI’s 17.5% stake in the Canje Block offshore Guyana, subject to ongoing government negotiations and approval.

Holzman underlined: “We are working closely with Navitas on the planned exploration of the PL001 license offshore the Falkland Islands to ensure a seamless technical handover from the JHI team to Eco and for Navitas to operate the block.

“Additionally, JHI and Eco remain engaged with the government of Guyana with respect to a potential extension or reissuance of JHI’s Canje block offshore, in parallel to Eco’s ongoing discussions with the ministry on the terms of the Orinduik Block offshore.”