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Eco (Atlantic) Oil & Gas, an AIM-listed and Canada-headquartered oil and gas company focused on the Atlantic Margin, has sealed a deal to bring into its fold the issued and to be issued shares it does not already hold in JHI Associates (JHI).
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Eco has signed a binding agreement to acquire the issued and to be issued shares of JHI it does not already hold based on an exchange ratio of 0.7054 common shares in the capital of the company for each acquired share. This acquisition is perceived to complement the firm’s existing Atlantic Margin portfolio in Namibia and South Africa, whilst adding to its exposure offshore Guyana.
Gil Holzman , President and Chief Executive Officer of Eco Atlantic, commented: “By securing a significant working interest adjacent to the Sea Lion field, and further aligning ourselves with Navitas, a proven, development-focused operator with a clear pathway to first oil, Eco is advancing beyond pure exploration exposure and positioning itself within a basin entering a new phase of development-led growth.
“With Sea Lion progressing toward development and infrastructure build-out, and with planned drilling activity supported by a meaningful carry, we believe Eco is now exceptionally well positioned to participate in the next chapter of growth in the region while maintaining capital discipline and maximising shareholder value.”
The transaction is perceived to position the company at the forefront of one of the most compelling offshore growth stories globally, the North Falkland Basin, alongside intended operator and strategic partner, Navitas Petroleum.
Upon completion of the acquisition, valued at approximately $52.3 million, Eco will issue up to 96,307,811 new common shares such that up to approximately 21.8% of its then issued share capital will be held by the shareholders of JHI, with around 45% of the common shares to be issued subject to lock-up arrangements spanning 18 months.
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JHI’s principal assets comprise a 35% working interest in the PL001 licence area in the Falkland Islands, a block directly adjacent to the Sea Lion field under development, and a 17.5% working interest in the Canje Block offshore Guyana, operated by ExxonMobil and its joint venture partners.
The Canje licence lapsed on March 4, 2026, and is subject to ongoing extension discussions with the government of Guyana. The remaining 65% interest in the PL001 licence area will be held by Navitas, assuming approval of their farm-in.
Holzman continued: “In parallel to this transaction, Eco and Navitas are continuing their advanced discussions with the government of Guyana regarding the appraisal and exploration program on the Orinduik block, while progressing lead and prospect evaluation on Block 1 CBK in South Africa’s Orange basin, and maintaining an active farm-out process on our three Walvis basin blocks in Namibia.”
Eco claims that the latest acquisition provides its shareholders with exposure to high-impact near term exploration and development acreage in an additional Atlantic Margin emerging hydrocarbon province, and assuming the Canje extension, boost the exposure in Guyana.
The Sea Lion development is described as the first major offshore oil development in the North Falkland basin, which achieved a final investment decision (FID) in December 2025, with first oil targeted for 2028.
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The planned development infrastructure for the Sea Lion development is expected to unlock the broader basin potential. The PL001 licence partners are working with the FIG to extend the licence, which currently expires at the end of 2026, for five years in preparation to drill an exploration well.
At the start of March 2026, Navitas announced that it had agreed with JHI to get a 65% interest in PL001, pursuant to which JHI received a fully funded carry loan for an exploration well and potential appraisal well up to $14 million net to JHI, the benefit of which Eco will assume through the transaction.
This license sits in the North Falklands Basin, adjacent to the Navitas-operated Sea Lion development and covers 1,126 square kilometers in water depths from 400-500 meters. The block is said to hold significant oil exploration potential, which Eco believes will now be unlocked, with the emergence of the basin as a producing petroleum province.
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PL001, which contains two legacy wells with oil shows, and part of the Rockhopper Exploration-led Johnson gas discovery, is fully covered by a 3D seismic survey, on which over 50 leads and prospects have been identified at multiple play levels, underpinned by a proven Lower Cretaceous petroleum system with world-class source rocks.
“The immediate proximity to the Sea Lion planned producing platform materially enhances the commercial attractiveness of PL001, offering potential future tie-back and infrastructure synergies, accelerating potential monetisation pathways and reducing development risk,” underlined Eco.
In addition to the Falkland licence extension, the completion of the acquisition, which is expected during Q3 2026, is subject to several closing conditions, including receipt of the requisite approvals from the TSX Venture Exchange, and the approval of two-thirds of the votes cast by JHI shareholders at a special meeting to be held within the next four weeks.
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about 4 months ago
Eco (Atlantic) Oil & Gas, an AIM-listed and Canada-headquartered oil and gas company focused on the Atlantic Margin, has sealed a deal to bring into its fold the issued and to be issued shares it does not already hold in JHI Associates (JHI).
