Eco (Atlantic) Oil & Gas said on Thursday that Israel’s Navitas Petroleum has agreed to pay up to US$8.5 million for options to farm-in to offshore licenses in Guyana and South Africa, in a deal that could see Navitas take operatorship and fund most early exploration work.
Eco said Navitas will pay US$2 million for exclusive options over the Orinduik Block offshore Guyana and Block 1 in South Africa’s Orange Basin.
Under the Orinduik option, which is valid for 12 months, Navitas may pay a further US$2.5 million “farm-in to the Orinduik Block to acquire an 80% working interest and operatorship”, Eco said.
Navitas would then carry Eco’s remaining 20% interest for up to US$11 million of exploration spending, excluding mobilization costs. The work program could include drilling a new exploration well or appraising the Jethro-1 and Joe-1 heavy oil finds made in 2019. Any farm-in would require regulatory approval from the Guyana government.
At Block 1 in South Africa, Navitas may exercise a second option within six months by paying US$4 million. If completed, Navitas would take up to a 47.5% stake and operatorship and carry Eco’s share of costs up to US$7.5 million. Eco said the carry includes up to two contingent exploration wells. Local partner OrangeBasin Energies is likely to retain a 5% interest that will be carried through the exploration period.
Eco Chief Executive Gil Holzman said the partnership with Navitas brings technical strength, financial capacity and a shared long-term vision. He said joint visits to Guyana later this month will help finalize work and appraisal plans for Orinduik.
“We believe this partnership paves the way for our planned exploration and appraisal programs on the block towards commercialisation, which will be carried and operated by Navitas, and will serve as a high-impact catalyst for the Company,” Holzman said.
Previous companies holding interests in the Orinduik Block included Tullow Oil, TotalEnergies and QatarEnergy, which left in 2023 and 2024.
