Eco Atlantic Oil & Gas has entered a binding agreement to acquire JHI Associates, a transaction valued at approximately $52.3 million. Upon completion, JHI shareholders are expected to hold about 21.8% of Eco's issued share capital. This acquisition is set to significantly expand Eco Atlantic's exploration portfolio in two key offshore regions.

Acquisition Highlights and Strategic Footprint

The deal grants Eco Atlantic a 35% working interest in the PL001 license in the North Falkland basin and a 17.5% interest in the Canje block offshore Guyana. The Canje block is operated by ExxonMobil with partners TotalEnergies and Mid Atlantic O&G. This move reinforces the company's strategy of assembling Atlantic Margin acreage alongside established operating partners.

The PL001 License and Sea Lion Development

The PL001 license is strategically located adjacent to the Sea Lion development, which reached final investment decision in late 2025 with first oil expected in 2028. Operated by Navitas Petroleum, the Sea Lion development is a key catalyst for the region. Navitas has also agreed to farm into the PL001 license with a 65% interest, pending regulatory approval. The license covers about 1,126 sq km and contains multiple exploration prospects identified via 3D seismic data, with an independent report estimating 3.1 billion barrels of unrisked prospective recoverable resources. Partners are seeking a five-year license extension to allow for additional drilling, and Navitas will provide a carry loan to fund an exploration well and a potential appraisal well.

Exposure to Offshore Guyana

The acquisition provides exposure to the Canje block offshore Guyana, situated north of the prolific Stabroek trend. The block hosts multiple exploration prospects identified from 3D seismic data. It is noted that the license has recently expired, and discussions are ongoing with the government regarding a potential extension.

Strategic Rationale and Portfolio Context

The transaction is described as a transformational milestone, advancing Eco beyond pure exploration by positioning it in a basin entering a development-led growth phase alongside Navitas, a development-focused operator. The company emphasizes capital discipline and maximizing shareholder value. In parallel, Eco and Navitas are in advanced discussions with the Government of Guyana regarding the Orinduik block appraisal and exploration program. The company is also evaluating prospects on Block 1 CBK in South Africa's Orange basin and maintaining an active farm-out process on its three Walvis basin blocks in Namibia.

Completion Timeline

The acquisition is expected to be completed in the third quarter of 2026, subject to shareholder approval, regulatory approvals, and the extension of the PL001 license.