Eco (Atlantic) Oil and Gas Ltd. Announces Acquisition of JHI & Navitas Partnership

Core Viewpoint - Eco (Atlantic) Oil and Gas Ltd. has announced the acquisition of JHI Associates, Inc. and a partnership with Navitas Petroleum LP, enhancing its position in the North Falkland Basin and expanding its exploration portfolio in the Atlantic Margin [1][2]. Transaction Highlights - The acquisition involves Eco acquiring 100% of JHI's shares based on an exchange ratio of 0.7054 common shares for each JHI share, valued at approximately US$52.3 million [1][2]. - Eco will issue up to 96,307,811 new common shares, resulting in JHI shareholders holding about 21.8% of Eco's issued share capital post-transaction [1][2]. - The acquisition is contingent upon several conditions, including a five-year extension of the PL001 licence from the Falkland Island Government [2][3]. Strategic Importance - The acquisition aligns Eco with Navitas, a strategic partner, and marks Eco's entry into the Falkland Islands, with immediate exploration plans on the PL001 licence [1][2]. - The Sea Lion Field, expected to produce first oil in 2028, enhances the commercial attractiveness of the PL001 licence, which is adjacent to this development [1][2]. - The transaction provides Eco shareholders with exposure to high-impact exploration and development opportunities in emerging hydrocarbon provinces [1][2]. Asset Overview - JHI's principal assets include a 35% working interest in the PL001 licence area and a 17.5% interest in the Canje Block offshore Guyana, which is under extension discussions with the Government of Guyana [1][2]. - The PL001 licence covers 1,126 km² and is located in water depths of 400-500m, with significant oil exploration potential supported by a 3D seismic survey [2][3]. Financial Aspects - JHI's cash balance at closing is expected to be a minimum of US$1.0 million, and the gross asset value of JHI as of December 31, 2025, was US$15.3 million [2][3]. - The acquisition is structured as a share-for-share transaction, with no cash consideration involved [2][3]. Management and Governance - Following the acquisition, JHI will have the right to appoint a nominee to Eco's board, enhancing governance and strategic oversight [3]. - The appointment of Mr. Frederick Cedoz as Vice President, Americas, is expected to strengthen Eco's management team with his extensive experience in the energy sector [3].