Eco (Atlantic) Oil & Gas (AIM:ECO) has signed a definitive farmout agreement under which Navitas Petroleum will acquire a 37.5% working interest in Block 1 CBK offshore South Africa and become operator after completion.
Under the deal Eco will retain a 37.5% working interest and be carried by Navitas for the block’s work programme, with the carry capped at US$7.5 million net to Eco and repayable from Eco’s share of future production.
The transaction follows Navitas exercising an option under the strategic framework announced in December 2025 and is conditional on customary approvals from the Petroleum Agency of South Africa and the TSX Venture Exchange.
Eco retains an exclusive option with OrangeBasin Energies to acquire a further 20% in the block and Navitas has the right to take 50% of that option, representing an additional 10% working interest.
Navitas, which reached first production at the Shenandoah field in July 2025 and achieved FID on Sea Lion in December 2025, has been expanding its South Atlantic portfolio including a January 2026 agreement to acquire 65% of PL001.
"This quick exercise of the option strengthens the bond between Eco and Navitas and propels us toward a promising future in South Africa's offshore oil and gas landscape," Gil Holzman, President and Chief Executive Officer, said.
Completion of the farmout is expected after receipt of the US$4 million payment and the necessary regulatory approvals.
