Highlights

• Eco Atlantic confirmed completion of its Namibian portfolio farm-down, handing BP a 60% interest and operatorship.

• The explorer keeps a 25% participating interest in each of the Cooper, Guy and Tamar offshore licences.

• BP carries Eco's retained stake through the current exploration phase, including Eco's share of partner carries.

• Put options could deliver drilling carries capped at US$21 million per well and US$63 million overall.

Eco Atlantic (LSE:ECO) has crossed the finish line on the deal that brings a supermajor into its Namibian acreage. On 10 November 2026, the explorer confirmed completion of the farm-down of its Namibian portfolio to BP, closing a process that began with a farmout agreement signed in April.

What the completion delivers

Under the agreed terms, BP Namibia Energy Ltd takes an aggregate 60% participating interest and operatorship in three Walvis Basin licences: PEL97 (the Cooper licence), PEL99 (the Guy licence) and PEL100 (the Tamar licence). Eco retains 25% in each. Namibian state oil company NAMCOR holds 10%, while local partners hold the remaining 5% in each licence.

The headline cash element is modest. The terms provide a one-time cash consideration of US$2.7 million payable at completion. The bigger value lies in the carry.

A carry that shifts the cost burden

BP is to carry 100% of Eco's 25% retained interest, along with Eco's proportionate share of the carry for NAMCOR and the local partners, through the current exploration phase. That structure lifts near-term exploration spending on all three licences away from Eco.

The work programme set out in April, subject to government approval, includes seismic reprocessing on PEL97 and a 3D seismic survey of at least 3,000 square kilometres across PEL99 and PEL100.

Put options point to the drilling decision

The deal also looks further ahead. If the partners enter the Second Renewal Period in 2028 and commit to an exploration well, Eco Atlantic (LSE:ECO) can choose between two routes. It may exercise a put option, transferring a further 10% interest to BP in return for a full carry on its remaining 15%, capped at US$21 million net to Eco per well. Alternatively, it can keep its 25% and pay its share of drilling costs. With three put options available, the maximum aggregate carry stands at US$63 million.

How the deal reached the line

Eco announced the farmout on 13 April 2026, describing itself as a TSX-V and AIM-quoted company. Conditions included Namibian regulatory approvals and TSX Venture Exchange acceptance. Final ministerial approval for the transfer was reported in early October 2026, after which the parties worked through the remaining closing requirements.

President and chief executive Gil Holzman said in April that the farm-down of the Namibian Walvis Basin licences marked a significant moment for Namibia.

Risks and the road ahead for the London-listed explorer

Frontier exploration offers no certainty of commercial discoveries, and seismic results may or may not support drilling. The put-option carry is capped, so well costs above US$21 million net to Eco would fall outside that route. The work programme also depends on government approval.

For followers of AIM stocks and UK energy shares, the next milestones for Eco Atlantic (LSE:ECO) are the delivery of the planned surveys under BP's operatorship and, further out, any decision on entering the Second Renewal Period in 2028.