Eco (Atlantic) Oil & Gas, the oil and gas exploration company focused on the offshore Atlantic Margins, announces that, further to the Company's announcement on December 4, 2025, it has signed a definitive agreement to farm down a 37.5% working interest ("WI") in Block 1 CBK offshore South Africa ("Block 1 CBK") to Navitas Petroleum LP (acting through a subsidiary) ("Navitas"). The Agreement is a key milestone in Eco's strategic framework agreement with Navitas (the "Strategic Framework") which provided Navitas with an option to farm-in to Block 1 CBK (the "Block 1 CBK Option"). 

Navitas has, following a review of geological data, now elected to exercise the Block 1 CBK Option through the execution of a definitive farmout agreement on May 19, 2026. The Agreement is conditional on receipt of customary regulatory approvals, from the Petroleum Agency of South Africa and the TSX Venture Exchange and receipt of US$4.0 million cash payment from Navitas to Eco. Upon completion Navitas will become the Operator of Block 1 CBK with 37.5% WI (and up to 47.5% pending exercise of the Eco-OrangeBasin Energies option) upon completion of the transaction.  

Eco will retain a remaining WI of 37.5% (and up to 47.5% assuming the exercise of the option with OrangeBasin Energies referenced below). 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.  

On December 3 2025, Eco, through its subsidiary Azinam South Africa, signed an exclusive option agreement with its local partner OrangeBasin Energies (Pty) Ltd ("OrangeBasin Energies"), formerly Tosaco Energy (Pty) Ltd, (the "Option Agreement") to acquire a further 20% participating interest in Block 1 CBK for a cash and shares consideration as detailed in the Company's announcement on December 4, 2025. Under the Block 1 CBK Option, 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:

Navitas, a publicly traded partnership, is actively engaged in offshore oil and gas exploration and production, with a portfolio of established oil and gas assets primarily in North America (U.S. Gulf of America) and the South Atlantic (Falkland Islands). The partnership's flagship production asset is the Shenandoah deepwater field in the U.S. Gulf, where Navitas holds a 49% WI and which reached first production in July 2025. Navitas has also demonstrated its ability to advance complex offshore developments efficiently toward first oil, achieving FID on the Sea Lion development in the Falkland Islands in December 2025. In January 2026, Navitas further expanded its South Atlantic footprint through the execution of an agreement to acquire 65% WI in the PL001 North Falkland Basin Licence, alongside Eco Atlantic's planned acquisition of JHI Associates to secure the remaining 35% interest. The strategic framework between Eco Atlantic and Navitas is intended to create a highly complementary partnership, combining Navitas' proven offshore exploration, development and production capabilities with Eco Atlantic's diversified portfolio of high-impact exploration acreage, providing a strong platform to organically expand and grow a long-term exploration and production portfolio.

Gil Holzman, President and Chief Executive Officer of Eco Atlantic, commented:
"We are incredibly excited about the successful exercise of the Block 1 CBK Option by Navitas, marking a significant advancement of our strategic relations. This quick exercise of the option not only strengthens the bond between Eco and Navitas but also propels us toward a promising future in South Africa's offshore oil and gas landscape and puts us in an active and enhanced exploration mode. Eco and Navitas' technical and operational teams have been working closely to analyse this block and the wider region along with other assets and areas of interest. Together, we are primed to leverage our combined expertise and resources to maximise our potential in the region and beyond.

"Importantly, this agreement not only adds cash to our strong balance sheet, but more importantly signifies the continued progress Eco has made in advancing its projects. Building on our recent farm down to BP in Namibia, we have now further deepened our strategic partnership with Navitas, working not only in South Africa but also in highly prospective acreage offshore the Falkland Islands in PL001, which Eco will gain further exposure to upon the upcoming completion of our acquisition of JHI Associates Inc. Additionally, Navitas also holds options to acquire 80% of Eco's interests in the Guyana Orinduik Block where we are progressing advanced discussions with the Government over the terms of the next exploration and appraisal stages, offering scope for our partnership to extend further. Overall, these milestones highlight how Eco has successfully executed its strategy of de-risking its portfolio of world-class assets through partnering with carrying, tier-one operators across the Atlantic Margins".

KeyFacts Energy: Eco Atlantic South Africa country profile   l   KeyFacts Energy Industry Directory: Navitas Petroleum