Eco Atlantic Strengthens Atlantic Basin Position Through Strategic Acquisition

Eco Atlantic Oil & Gas consolidates Atlantic Basin interests with a $52.3M JHI acquisition, gaining key stakes in Falkland Islands and Guyana oil fields and deepening its Navitas partnership.

Eco (Atlantic) Oil & Gas is positioning itself for significant future growth by consolidating its interests in the Atlantic Basin. The company has agreed to a full acquisition of JHI Associates, a move that grants it pivotal stakes in promising oil fields located offshore the Falkland Islands and Guyana. This strategic expansion substantially broadens Eco's portfolio and deepens its existing partnership with industry player Navitas Petroleum.

Transaction Structure and Terms

Valued at approximately $52.3 million, the deal will be executed entirely through the issuance of new Eco shares. Shareholders of JHI will receive 0.7054 Eco shares for each JHI share they own. Upon the merger's completion, which is scheduled for the third quarter of 2026, former JHI owners are expected to hold a 21.8% stake in the enlarged entity. To mitigate potential short-term selling pressure, nearly half of the newly issued shares will be subject to an 18-month lock-up period.

Expanding the Falkland Islands Footprint

A central asset in the acquisition is the license PL001 in the North Falkland Basin. This license is situated directly adjacent to the Sea Lion oil field, where a final investment decision was reached in late 2025 and production is slated to commence in 2028. Eco benefits from a pre-existing arrangement with operator Navitas Petroleum, which includes financing of up to $14 million for exploration drilling. The company is currently in discussions with the Falkland Islands government to secure a five-year extension for the PL001 license, which is due to expire at the end of 2026, thereby safeguarding the planned drilling campaign.

Management Expertise and Guyana Developments

The transaction also brings enhanced management capabilities. Daniel Guy will join the board of directors, while JHI co-founder Frederick Cedoz will assume leadership of the company's Americas business operations.

The situation in Guyana remains active. The license for the Canje Block formally expired in early March. Eco's management is engaged in talks with Guyanese authorities regarding a potential renewal, aiming to maintain its presence in one of the world's most sought-after oil regions.

Integrated Assets and Forward Strategy

Beyond acquiring new drilling rights, Eco will also integrate a cash position of at least $1 million from JHI. The company's immediate focus is now on preparing for upcoming exploration steps within the PL001 area, seeking to efficiently unlock the potential surrounding the established infrastructure of the Sea Lion project.