Israel’s Navitas Petroleum has signed on the dotted line to get a stake in a block off the coast of South Africa by exercising an option to farm into the block with Eco (Atlantic) Oil & Gas, an AIM-listed and Canada-headquartered oil and gas company focused on the Atlantic Margin.
On December 3, 2025, Eco, through its subsidiary, Azinam South Africa, signed an exclusive option agreement with its local partner, OrangeBasin Energies, formerly Tosaco Energy, to acquire a further 20% participating interest in Block 1 CBK for a cash and shares consideration. Navitas had the right to acquire 50% of this option, exercisable at any point throughout the term of the initial exploration period expiring in February 2028.
Eco has now inked a definitive agreement to farm down a 37.5% working interest in Block 1 CBK offshore South Africa to Navitas, as a key milestone in the duo’s strategic framework agreement, which enabled this option. Following a review of geological data, the Israel-based firm elected to exercise the Block 1 CBK option through the execution of a definitive farm-out agreement on May 19, 2026.
The agreement is conditional on receipt of customary regulatory approvals from the Petroleum Agency of South Africa, the TSX Venture Exchange, and receipt of a $4 million cash payment from Navitas to Eco. Upon completion, the Israeli player will become the operator of Block 1 CBK with 37.5% stake, and up to 47.5% pending exercise of the Eco-OrangeBasin Energies option, upon completion of the transaction.
Eco will retain a remaining interest of 37.5%, and up to 47.5% assuming the exercise of the option with OrangeBasin Energies. The company will be carried by Navitas for the work program, with the value of the carry being capped at $7.5 million net to the AIM-listed firm. The amounts carried by the Israeli company will be repaid via Eco’s share of proceeds from future production on the block.
Gil Holzman, President and Chief Executive Officer of Eco Atlantic, commented: “We are incredibly excited about the successful exercise of the Block 1 CBK Option by Navitas, marking a significant advancement of our strategic relations. This quick exercise of the option not only strengthens the bond between Eco and Navitas but also propels us toward a promising future in South Africa’s offshore oil and gas landscape and puts us in an active and enhanced exploration mode.
“Eco and Navitas’ technical and operational teams have been working closely to analyse this block and the wider region along with other assets and areas of interest. Together, we are primed to leverage our combined expertise and resources to maximise our potential in the region and beyond.”
Navitas is actively engaged in offshore oil and gas exploration and production, with a portfolio of established oil and gas assets primarily in North America within the Gulf of America (U.S. Gulf of Mexico) and the South Atlantic in the Falkland Islands, where a final investment decision (FID) was made on the Sea Lion development in December 2025.
In January 2026, the company further expanded its South Atlantic footprint through the execution of an agreement to acquire a 65% stake in the PL001 North Falkland Basin licence, alongside Eco Atlantic’s planned acquisition of JHI Associates to secure the remaining 35% interest.
Holzman added: “Importantly, this agreement not only adds cash to our strong balance sheet, but more importantly signifies the continued progress Eco has made in advancing its projects. Building on our recent farm down to BP in Namibia, we have now further deepened our strategic partnership with Navitas, working not only in South Africa but also in highly prospective acreage offshore the Falkland Islands in PL001, which Eco will gain further exposure to upon the upcoming completion of our acquisition of JHI Associates Inc.
“Additionally, Navitas also holds options to acquire 80% of Eco’s interests in the Guyana Orinduik Block where we are progressing advanced discussions with the Government over the terms of the next exploration and appraisal stages, offering scope for our partnership to extend further. Overall, these milestones highlight how Eco has successfully executed its strategy of de-risking its portfolio of world-class assets through partnering with carrying, tier-one operators across the Atlantic Margins.”
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