Eco (Atlantic) Oil & Gas Ltd

Eco (Atlantic) Oil & Gas Ltd. has received final Ministerial approval from Namibia's Minister of Industries, Mines and Energy for the transfer and assignment of a 60% participating interest in all three of its offshore Petroleum Exploration Licenses to BP Namibia Energy Ltd, a wholly owned subsidiary of BP Exploration Operating Company Limited. The approval, received on 1 October 2026, is the final governmental consent required under Section 11 of Namibia's Petroleum (Exploration and Production) Act for the farm-down covering PEL97, PEL99 and PEL100, and the parties are now completing the remaining closing deliverables with completion expected shortly. Under the transaction, Eco will receive a one-time cash consideration of US$2.7 million on completion and retain a 25% participating interest in each of the three licences, while BP will carry 100% of Eco's 25% retained interest plus Eco's proportionate share of the NAMCOR 10% and Local Partners 5% interests during the current exploration phase. The government-approved work program includes completing seismic reprocessing on PEL97 and acquiring at least 3,000km2 of new 3D seismic data on PEL99 and PEL100. If BP and partners elect to enter the Second Renewal Period in 2028 and commit to drilling an exploration well, Eco may exercise a Put Option to transfer an additional 10% interest to BP for a full carry on its remaining 15%, capped at US$21 million net to Eco per well on each licence, with a maximum aggregate carry of US$63 million should all three Put Options be exercised. Eco intends to use the proceeds to fund exploration and appraisal across its Atlantic Margin portfolio and for general working capital.