Eco Atlantic (AIM: ECO) shares jump 34% on Navitas farm-in deals for Guyana and South Africa

Eco (Atlantic) Oil & Gas Ltd (AIM: ECO, TSX-V: EOG) witnessed a surge of over 34 percent in its share price on December 4, 2025, closing at GBX 10.30, following the announcement of a transformational strategic alliance with Navitas Petroleum LP. The multi-faceted agreement grants Navitas access to Eco’s key offshore blocks in Guyana and South Africa, while also setting the stage for potential future asset partnerships across Eco’s broader Atlantic Margin portfolio. The rally, which took the stock from an open of GBX 7.75 to an intraday high of GBX 10.50, underscores investor enthusiasm for what is widely seen as a turning point in Eco’s growth trajectory.

What is the structure and scope of the Navitas–Eco Atlantic exploration partnership?

Eco (Atlantic) Oil & Gas Ltd signed a binding framework agreement with Navitas Petroleum on December 3, 2025. Under the agreement, Navitas will pay an upfront fee of USD 2 million to secure two key exploration options. The first option allows Navitas to acquire an 80 percent operating interest in the Orinduik Block offshore Guyana by making a further payment of USD 2.5 million within 12 months. The second option enables Navitas to acquire up to 47.5 percent of Block 1 CBK offshore South Africa by paying USD 4 million within six months.

In both cases, Navitas will assume operatorship and carry Eco’s share of the exploration expenditure. The carry on the Orinduik Block is capped at USD 11 million, excluding any mobilisation costs, while the carry for Block 1 CBK is capped at USD 7.5 million. These options provide Navitas with near-term control over some of the most underexplored offshore blocks in the Atlantic Margin while allowing Eco to maintain exposure without near-term capital outlay.

The Orinduik Block includes the existing heavy oil discoveries Jethro-1 and Joe-1, which are being evaluated for commercial development. Drilling or appraisal activity will be undertaken by Navitas if the farm-in option is exercised. The Block 1 CBK opportunity could also include exploratory drilling within the current licence period, which runs through February 2028.

How will Navitas engage with Eco’s broader asset base across the Atlantic Margin?

The strategic partnership extends beyond the immediate farm-in options. Navitas now holds an “Additional Assets Option,” allowing it to review and potentially acquire a minimum of 25 percent working interest in Eco’s other petroleum assets on commercial terms to be agreed at the time of exercise. These assets include offshore Namibia licences PEL97, PEL99, and PEL100, as well as Eco’s stake in Azinam Limited, which holds Block 3B/4B in South African waters.

This option remains open for a period of at least five years and can be extended to ten years if Navitas exercises either the Orinduik or CBK options. The long duration is viewed as a signal of commitment from both companies to explore longer-term cooperation, particularly in underexplored frontier basins where technical de-risking and financial structuring will be essential.

In addition, Eco and Navitas have created a “Future Assets Option,” aligning both firms on a 50:50 basis in any new ventures targeted or acquired by Eco. This structure ensures that Navitas has the opportunity to participate equally in Eco’s forward-looking asset strategy, bringing capital and technical resources into any new basins or blocks identified under future licensing rounds or M&A.

What is the significance of the OrangeBasin Energies deal within Block 1 CBK?

As part of its strategic preparations in South Africa, Eco (Atlantic) Oil & Gas Ltd has also secured an internal option to increase its stake in Block 1 CBK through a deal with its local partner OrangeBasin Energies Pty Ltd, formerly known as Tosaco Energy Pty Ltd. The agreement, signed by Eco’s subsidiary Azinam South Africa Limited, allows Eco to acquire an additional 20 percent participating interest in Block 1 CBK through a cash and share arrangement.

If exercised in full, the deal involves a USD 500,000 payment on exercise, another USD 500,000 on completion, and USD 3.8 million in completion consideration. Eco has the discretion to settle the latter amount in cash or Common Shares based on prevailing share prices. If the payment is made in shares, they will be subject to a six-month lock-in period. Navitas retains the right to participate in this transaction by reimbursing its proportionate share of costs. Once the deal closes, the residual 5 percent interest retained by OrangeBasin Energies will be carried by both Eco and Navitas through the exploration phase, including up to two contingent wells.

This deal is viewed as a strategic maneuver by Eco to further consolidate its position in Block 1 CBK while creating flexibility for Navitas to engage at parity, ensuring efficient project development planning and equity alignment between partners.

How is Eco Atlantic positioning itself for growth beyond Guyana and South Africa?

Eco (Atlantic) Oil & Gas Ltd views the Navitas partnership as a platform for broader expansion across the Atlantic Margin. The Additional Assets Option covers core frontier positions in offshore Namibia, where Eco holds material interests in three petroleum exploration licences. These assets are at earlier stages compared to Guyana and South Africa but are considered highly prospective, particularly in the context of recent discoveries in the region by major operators.

Navitas’ long-term right to review these Namibian blocks on a case-by-case basis enables both companies to maintain strategic optionality without binding either party to fixed terms prematurely. It also provides Eco with a mechanism to fund future exploration through carried interests while aligning itself with a deep-pocketed and operationally experienced partner.

Eco also continues to hold at least 25 percent of Azinam Limited, positioning it to benefit from any progress made in Block 3B/4B, one of South Africa’s most watched pre-drill prospects. Navitas could eventually assume operatorship of additional assets subject to agreement, further deepening the collaboration and providing continuity across the portfolio.

What are the investor signals from Eco’s stock performance and market sentiment?

Following the announcement, Eco (Atlantic) Oil & Gas Ltd’s stock jumped by 34.64 percent on the London AIM market, reflecting broad-based investor approval. The shares closed at GBX 10.30, up from a previous close of GBX 7.65. Bid-offer spreads remained tight at GBX 10.25 to GBX 10.50, suggesting sustained trading interest and limited selling pressure. The stock reached a high of GBX 10.50 during intraday trading before stabilising post-close.

Analysts tracking junior exploration and production firms described the deal structure as attractive due to the minimal upfront capital requirement for Eco and the clear path to drilling-led catalysts. The ability to defer costs while securing exposure to potentially high-impact blocks was viewed as a significant positive. The company now benefits from an enhanced funding runway and strategic clarity, particularly with regard to its long-term South Atlantic positioning.

While institutional flow data is not immediately available, trading volume patterns indicate renewed momentum among retail investors and AIM small-cap traders. The market will likely now look for concrete updates on drilling timelines in Guyana and South Africa to further validate the partnership’s near-term value.

What did Eco (Atlantic) Oil & Gas’ management say about the Navitas agreement and the road ahead?

Eco (Atlantic) Oil & Gas Ltd Chief Executive Officer Gil Holzman described the partnership with Navitas as a “truly transformational” step for the Canadian-listed exploration company. He pointed to Navitas’ technical credibility, financial scale, and offshore development track record as key strengths that complement Eco’s basin access and early mover advantage.

Holzman said the collaboration would allow both companies to focus on near-term work programmes in Guyana and South Africa, particularly around the commercialisation of the Jethro-1 and Joe-1 heavy oil discoveries. He also reiterated that a joint team visit to Guyana was planned for later in December to align on technical priorities and plan the appraisal campaign.

The CEO thanked long-term shareholders for their patience and reiterated that the company’s efforts to secure the right operational partner have now positioned it for a new phase of disciplined growth. He also paid tribute to Navitas Chairman Gideon Tadmor and his team for their constructive engagement and shared vision throughout the negotiation process.

The transaction was dedicated to Eco (Atlantic) Oil & Gas co-founder Colin Kinley, who passed away earlier in the year and was instrumental in shaping the company’s exploration philosophy.

What are the key takeaways from Eco Atlantic’s strategic alliance with Navitas Petroleum?

• Stock rally: Eco (Atlantic) Oil & Gas Ltd (AIM: ECO) shares surged by 34.64 percent to GBX 10.30 following the announcement of a wide-ranging partnership with Navitas Petroleum LP.

• Farm-in options: Navitas secured exclusive rights to farm into the Orinduik Block offshore Guyana and Block 1 CBK offshore South Africa, with upfront payments totaling USD 6.5 million and full carry for Eco on exploration costs.

• Operatorship transfer: Navitas will become operator of both blocks if it exercises the options, gaining 80 percent in Orinduik and up to 47.5 percent in CBK. Eco retains carried interest of 20 percent and up to 47.5 percent respectively.

• Heavy oil appraisal: Orinduik may see appraisal of Jethro-1 and Joe-1 heavy oil discoveries under Navitas’ lead, potentially unlocking long-stalled value.

• CBK equity consolidation: Eco signed a side deal with OrangeBasin Energies to raise its stake in Block 1 CBK, creating flexibility for future Navitas participation.

• Additional assets option: Navitas gained rights to explore acquiring at least 25 percent of Eco’s other assets, including Namibian licences PEL97, PEL99, PEL100, and Block 3B/4B.

• Future ventures alignment: Eco and Navitas agreed to pursue new projects jointly on a 50:50 basis, reinforcing long-term collaboration across the Atlantic Margin.

• Investor sentiment: The market welcomed the announcement, with tight bid-offer spreads and increased volume. Analysts saw the structure as low-risk and value-accretive for Eco shareholders.

• CEO remarks: Eco CEO Gil Holzman called the partnership “transformational” and highlighted Navitas’ technical strength and financial backing as key enablers of Eco’s growth strategy.

• Drilling outlook: Joint technical teams are expected to visit Guyana in December to finalise appraisal plans. Updates on drilling timelines and option exercises will be key investor watchpoints in 2026.