(WO) — Eco Atlantic Oil & Gas has signed a binding agreement to acquire the remaining shares of JHI Associates, a move that will expand the company’s exploration footprint in the North Falkland basin and offshore Guyana.
The transaction would give Eco a 35% working interest in the PL001 license area in the Falkland Islands and a 17.5% interest in the Canje block offshore Guyana, which is operated by ExxonMobil with partners TotalEnergies and Mid Atlantic O&G.
The acquisition is valued at about $52.3 million, based on Eco’s share price on the TSX Venture Exchange. Upon completion, JHI shareholders are expected to hold about 21.8% of Eco’s issued share capital.
PL001 sits in the North Falkland basin, adjacent to the Sea Lion development, which reached final investment decision in late 2025 and is expected to deliver first oil in 2028. The development is operated by Navitas Petroleum, which has agreed to farm into PL001 with a 65% interest pending regulatory approval.
The license covers approximately 1,126 sq km in water depths of 400–500 m and contains multiple exploration prospects identified through modern 3D seismic data. Previous drilling in the area encountered oil shows, and an independent resource report estimated 3.1 billion bbl of prospective recoverable resources (unrisked) across the block.
The PL001 partners are working with the Falkland Islands government to secure a five-year license extension, which would allow additional exploration drilling. As part of the farm-in agreement, Navitas will provide a carry loan to fund an exploration well and potential appraisal well.
The deal also adds exposure to the Canje block offshore Guyana, located north of the prolific Stabroek trend. The block hosts multiple exploration prospects identified from 3D seismic data, although the license recently expired and discussions are ongoing with the government regarding a potential extension.
Gil Holzman, President and Chief Executive Officer of Eco Atlantic, commented:
“This Transaction represents a further transformational milestone in Eco’s strategic evolution and reinforces our disciplined approach to assembling high-quality Atlantic Margin acreage alongside best-in-class operating partners. By securing a significant working interest adjacent to the Sea Lion Field, and further aligning ourselves with Navitas, a proven, development-focused operator with a clear pathway to first oil, Eco is advancing beyond pure exploration exposure and positioning itself within a basin entering a new phase of development-led growth.
With Sea Lion progressing toward development and infrastructure build-out, and with planned drilling activity supported by a meaningful carry, we believe Eco is now exceptionally well positioned to participate in the next chapter of growth in the region while maintaining capital discipline and maximising shareholder value.
In parallel to this transaction, Eco and Navitas are continuing their advanced discussions with the Government of Guyana regarding the appraisal and exploration program on the Orinduik block, while progressing lead and prospect evaluation on Block 1 CBK in South Africa’s Orange basin, and maintaining an active farm-out process on our three Walvis basin blocks in Namibia. We will update the market in due course on any further development across our wider Atlantic margin portfolio.
I want to thank my team and our advisors for their hard work; we are delighted to update the market on the continued progress of the Company through our proposed acquisition of JHI. Today’s announcement builds on the strong momentum we have generated since signing our framework agreement with Navitas in December 2025 and further strengthens our strategic Atlantic margin footprint in the North Falkland Basin.”
Completion of the acquisition is expected in third-quarter 2026, subject to shareholder approval, regulatory approvals and the extension of the PL001 license.
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