Eco (Atlantic) Oil & Gas Ltd. has announced a binding Framework Agreement with Navitas Petroleum LP, establishing a strategic partnership focused on offshore assets in the Atlantic Margins. The deal grants Navitas exclusive options to farm into the Orinduik Block offshore Guyana and Block 1 CBK offshore South Africa.
Under the terms of the agreement, Navitas will pay Eco an initial US$2 million for the exclusive options.
Navitas may exercise this option within 12 months by paying an additional US$2.5 million to Eco. Upon exercise, Navitas will acquire an 80% working interest and operatorship of the block. Crucially, Navitas will carry Eco’s share of costs for upcoming work, which may include drilling new exploration wells or appraising the existing Jethro-1 and Joe-1 heavy oil discoveries.
Navitas may exercise this option within six months by paying US$4 million to Eco. This would grant Navitas a 47.5% working interest and operatorship, while carrying Eco’s share of the exploration work programme.
In both instances, the costs carried by Navitas on Eco’s behalf will be repaid via Eco’s share of proceeds from future production.
For more information, contact our Marketing Department:
Email: [email protected]
Tele: (592) 640-5512
