Eco Atlantic confirms North Falklands farm-in agreement with Navitas

(Sharecast News) - Eco Atlantic Oil & Gas said on Monday that Navitas Petroleum has agreed to farm into JHI Associates' North Falklands Basin licence, in a transaction that would see Navitas acquire a 65% working interest in the PL001 licence, where Eco holds an indirect 6.6% stake through JHI. The AIM- and TSX Venture Exchange-listed explorer said Navitas signed a non-binding memorandum of agreement with JHI Associates covering PL001, adjacent to the Navitas-operated Sea Lion development in the North Falklands Basin.

It said the licence covers 1,126 square kilometres in water depths of around 500 metres and was considered to hold significant exploration potential.

JHI estimated best prospective resources of 3.1 billion barrels across multiple prospects and leads, including several Lower Cretaceous targets analogous to the neighbouring Sea Lion field.

"We are encouraged to see a further strengthening of our relationship with Navitas, this time through our holding in JHI," said Gil Holzman, president and chief executive of Eco Atlantic.

He added that, as part of Eco Atlantic's strategic partnership with Navitas Petroleum, technical and commercial discussions relating to the group's projects in Guyana and South Africa were continuing.

At 1053 GMT, shares in Eco Atlantic Oil & Gas were up 7.02% at 30.5p.

Reporting by Josh White for Sharecast.com.