Eco (Atlantic) Oil and Gas Ltd. (AIM: ECO, TSX-V: EOG) has confirmed completion of its farm-down of a 60% participating interest in three offshore Namibian Petroleum Exploration Licences to BP Namibia Energy Ltd, following formal Ministerial deeds signature received on 9 November 2026. The transaction transfers operatorship to BP across PEL97, PEL99, and PEL100 in the Walvis Basin, while Eco retains a 25% participating interest in all three licences. A one-time cash consideration of US$2.7 million is due to be received by Eco on 16 November 2026, with the proceeds earmarked for ongoing exploration and general working capital.

Key Points

  • Eco (Atlantic) Oil and Gas Ltd. (AIM: ECO, TSX-V: EOG)
  • Farm-down of 60% participating interest in PEL97, PEL99, and PEL100 to BP Namibia Energy Ltd completed on 9 November 2026 following Namibian Ministerial approval
  • US$2.7 million one-time cash consideration payable to Eco on 16 November 2026; Eco retains a 25% interest, carried by BP through the First Renewal Period
  • Investors should watch for the commencement of the new large-scale 3D seismic acquisition programme on PEL99 and PEL100, expected within weeks

Namibian Ministerial Approval Triggers Final Closing of BP Farm-Down Across PEL97, PEL99 and PEL100

Completion followed receipt of the Section 11 consent letter on 1 October 2026 and was finalised upon the Honourable Minister of Industries, Mines and Energy of Namibia signing the transfer, assignment, and renewal deeds on 9 November 2026. The three licences — the Cooper Licence (Block 2012A PEL97), the Guy Licence (Blocks 2111B and 2211A PEL99), and the Tamar Licence (Blocks 2211B and 2311A PEL100) — collectively cover a combined area of 22,893 km² in the Walvis Basin offshore Namibia. BP now holds a 60% participating interest and has assumed operatorship across all three blocks, with NAMCOR retaining 10% and local partners holding 5% in each licence.

BP to Carry Eco's Full 25% Interest During First Renewal Period, with Put Option Worth Up to US$63 Million

Under the terms of the Farmout Agreement, BP will carry 100% of Eco's 25% retained participating interest, as well as Eco's proportionate share of NAMCOR's and local partners' interests, through the current First Renewal Period. Should BP and partners elect to enter the Second Renewal Period in 2028 and commit to drilling, Eco may exercise a Put Option to transfer an additional 10% interest to BP in exchange for a full carry, capped at US$21 million net to Eco per well on each licence. The maximum aggregate carry consideration across all three Put Options is disclosed as US$63 million, subject to individual caps of US$21 million per licence.

Large-Scale 3D Seismic Programme on PEL99 and PEL100 Expected to Begin Within Weeks

With the transaction now complete, the joint venture is preparing to launch a new 3D seismic acquisition programme covering at least 3,000 km² across PEL99 and PEL100, with commencement expected in the coming weeks. Seismic reprocessing on PEL97 also forms part of the approved government work programme. The exploration programme will be conducted under BP's operatorship, substantially reducing Eco's direct funding exposure while maintaining material upside across the Walvis Basin acreage. Investors may be watching the seismic programme's start date as a near-term operational milestone for the newly structured joint venture.

Eco Atlantic Signals Broader Atlantic Margin Strategy Beyond Namibia, Including Falklands and Guyana

Beyond Namibia, Eco Atlantic operates a 100% working interest in the 1,354 km² Orinduik Block offshore Guyana and holds interests in Blocks 3B/4B and Block 1 CBK in South Africa's Orange Basin. The company's President and CEO, Gil Holzman, stated in the announcement that Eco remains focused on progressing farm-outs and mergers and acquisitions activity in the Falkland Islands and Guyana. The transaction remains subject to final acceptance from the TSX Venture Exchange, pending submission of customary closing documentation, though conditional acceptance has already been received.