Eco Atlantic Oil & Gas, through its subsidiary Azinam South Africa, signed an exclusive option agreement with local partner OrangeBasin Energies, formerly Tosaco Energy, to acquire an additional 20% participating interest in Block 1 CBK through a cash and shares deal. Navitas Petroleum secured the right to acquire 50% of this option during the initial exploration period, which runs until February 2028.
Eco later signed a definitive agreement to farm down a 37.5% working interest in Block 1 CBK offshore South Africa to Navitas under the companies’ strategic framework agreement. After reviewing geological data, Navitas chose to exercise the option by signing a definitive farm-out agreement on May 19, 2026.
The agreement still requires regulatory approvals from the Petroleum Agency of South Africa and the TSX Venture Exchange, alongside a $4 million cash payment from Navitas to Eco. Once completed, Navitas will operate Block 1 CBK with a 37.5% stake, which could rise to 47.5% if the Eco-OrangeBasin Energies option is exercised.
Eco will keep a 37.5% interest in the block, with the potential to increase to 47.5% if the OrangeBasin Energies option moves ahead. Navitas will carry Eco through the work program, capped at $7.5 million net to Eco. Eco will repay the carried costs through its future production proceeds from the block.
Gil Holzman said the option exercise strengthens the relationship between Eco and Navitas while advancing offshore oil and gas exploration activities in South Africa. He added that both companies have worked closely to assess the block, the surrounding region, and other exploration opportunities to expand their activities together.
Navitas Petroleum continues to expand its offshore exploration and production portfolio across North America and the South Atlantic. The company holds assets in the Gulf of America and the Falkland Islands, where partners approved the Sea Lion development project in December 2025.
In January 2026, Navitas expanded its South Atlantic position further by signing an agreement to acquire a 65% stake in the PL001 North Falkland Basin licence. At the same time, Eco Atlantic moved to acquire JHI Associates to secure the remaining 35% interest.
Holzman said the agreement strengthens Eco’s financial position and reflects continued progress across its asset portfolio. He noted that Eco recently partnered with BP in Namibia and has expanded its partnership with Navitas across South Africa and the Falkland Islands through the planned acquisition of JHI Associates.
He also said Navitas holds options to acquire 80% of Eco’s interests in the Guyana Orinduik Block, where discussions continue with the government on the next exploration and appraisal phases. According to Holzman, these developments support Eco’s strategy of reducing exploration risk by partnering with established operators across the Atlantic Margin regions.
source: www.offshore-energy.biz
African Energy Council