Eco Atlantic and Navitas sign offshore exploration partnership deal for Guyana, South Africa

Eco Atlantic has entered into a strategical offshore exploration concern statement with Navitas Petroleum, granting the Israeli institution exclusive options to get important stakes successful exploration blocks offshore Guyana and South Africa.

As per the statement terms, Navitas volition marque a outgo of $2m to Eco Atlantic to unafraid farm-in options for the Orinduik artifact offshore Guyana and Block 1 CBK successful South Africa’s Orange basin.

In Guyana, Navitas tin workout an enactment to instrumentality an 80% operating involvement successful the Orinduik artifact wrong 12 months by paying an further $2.5m. Should Navitas proceed, Eco Atlantic’s involvement successful the artifact would trim to 20%.

Navitas would past transportation Eco Atlantic’s involvement done an Orinduik enactment programme, perchance including the drilling of an exploration good oregon appraising the existing Jethro-1 and Joe-1 dense lipid discoveries.

This transportation volition beryllium capped astatine $11m (C$15.35m) nett to Eco and volition not see mobilisation costs.

Eco Atlantic main enforcement Gil Holzman said: “Following a associated sojourn by our teams to Guyana aboriginal this month, we expect to summation clarity connected our enactment programme and appraisal program for Orinduik.”

For Block 1 CBK successful South Africa, Navitas has six months to workout its enactment to unafraid an operating involvement of up to 47.5% by paying $4m and would transportation Eco Atlantic’s stock of an exploration programme.

Both the companies whitethorn summation their holdings successful this artifact if a abstracted statement betwixt Eco Atlantic and section spouse OrangeBasin Energies (OBE) is finalised.

As per this abstracted statement with OBE, Eco Atlantic volition person the sole enactment to get an further 20% involvement successful Block 1 CBK for a operation of currency and shares, with Navitas holding the close to bargain 50% of this enactment up until February 2028.

If Eco Atlantic exercises its option, it volition wage $500,000 (R8.48m) to OBE, followed by further payments of $500,000 and $3.8m upon completion.

Should Navitas take to enactment connected its option, it volition reimburse Eco Atlantic for its proportionality of the workout cost.

If some companies workout these options, OBE volition person a 5% carried involvement for a enactment programme that whitethorn diagnostic drilling up to 2 contingent exploration wells.

If Eco Atlantic yet holds a 47.5% involvement successful Block 1 CBK, it volition beryllium carried by Navitas via the enactment programme up to a worth of $7.5m.

In summation to the Guyana and South Africa options, Navitas volition besides person an enactment to perchance bargain a minimum 25% of Eco Atlantic’s interests successful the remainder of its upstream portfolio.

This includes Petroleum Exploration Licences (PEL) 97, 99 and 100 successful the Walvis basin, offshore Namibia, arsenic good arsenic a minimum of a 25% involvement successful relation Azinam, which holds licences for Block 3B/4B offshore South Africa.