Eco Atlantic, a London-listed junior oil and gas company, has reported constructive discussions with the Government of Guyana's Ministry of Natural Resources concerning new exploration and appraisal work on its Orinduik offshore block. These talks are ongoing with partner Navitas Petroleum, despite the current licence reaching the end of its second renewal term.

Licence Status and Regulatory Process

While the Orinduik licence term concluded, provisions under Guyana's Petroleum Act allow the company to maintain its rights to the Jethro-1 and Joe-1 discoveries. This is pending government approval of the appraisal programme that has been jointly submitted by Eco Atlantic and Navitas to the relevant authorities. The company describes these discussions as part of a customary regulatory process under the existing legislative framework.

Strategic Objectives and Partnership

The company's stated focus is on preserving access to its existing discoveries, progressing appraisal activity, and evaluating opportunities to enhance the block configuration. It aims to align these efforts with both shareholder values and the national objectives of the Guyana government. This process is supported by a new framework agreement with Navitas Petroleum, a strategic partner.

Details of the Navitas Partnership

Under a strategic partnership agreement signed the previous December, Navitas Petroleum secured exclusive farm-in options for key stakes in exploration blocks. For the Orinduik block offshore Guyana and Block 1 CBK in South Africa's Orange basin, Navitas will pay $2 million to Eco Atlantic to secure these options. The agreement also includes potential interests in blocks offshore Namibia.