Mr. Gil Holzman reports

ECO (ATLANTIC) OIL AND GAS LTD. ANNOUNCES COMPLETION OF FARM DOWN IN BLOCK 1 CBK

Further to Eco (Atlantic) Oil & Gas Ltd.'s announcements on Dec. 4, 2025, and May 20, 2026, completion of its farmdown of a 37.5-per-cent working interest (WI) in Block 1 CBK offshore South Africa and transfer of operatorship of the block to Navitas Petroleum LP (acting through a subsidiary) following receipt of the requisite regulatory approvals (Section 11) from the government of South Africa and the TSX Venture Exchange.

Completion of the farmdown, initially announced in May, 2026, represents another key milestone in Eco's strategic framework agreement with Navitas and follows an extensive review of the block's existing geological data by both Eco and Navitas.

Block 1 CBK, which spans 19,929 square kilometres offshore South Africa, directly abutting the Namibian border, has both oil and gas potential and benefits from three legacy exploration wells which confirmed a gas discovery with tested flow rates of 32.4 million standard cubic feet per day as well as additional gas shows and oil indications. Certain prospectivity on the acreage is considered geologically analogous to both the Kudu gas field to the north and sits immediately southeast of recent light oil discoveries made by Galp Energia (Mopane), TotalEnergies (Venus) and Rhino Resources (Capricornus). The most recent, closest light-oil discovery to the block is Shell's Merlin-1X exploration well (June, 2026), which lies 70 kilometres away.

Following completion, Eco now holds a 37.5-per-cent working interest in Block 1 CBK (up to 47.5 per cent assuming the exercise of the option with OrangeBasin Energies Pty. Ltd. referenced below), with Navitas assuming operatorship of the block with a 37.5-per-cent working interest (up to 47.5 per cent assuming the exercise of the Eco/OrangeBasin Energies option).

As part of the farmdown, Eco has now also received a $4-million (U.S.) cash payment from Navitas. Additionally, Eco will be carried by Navitas for the work program, the value of the carry being capped at $7.5-million (U.S.) net to Eco. The amounts carried by Navitas will be repaid through Eco's share of proceeds from future production on the block.

As detailed in the company's announcement on Dec. 4, 2025, on Dec. 3, 2025, Eco, through its subsidiary, Azinam South Africa Ltd. (Azinam SA), signed an exclusive option agreement with its local partner, OrangeBasin Energies, to acquire a further 20-per-cent participating interest in Block 1 CBK for consideration of cash and shares. Navitas has the right to acquire 50 per cent of this option (representing a 10-per-cent working interest), which is exercisable at Eco's and Navitas's mutual consent and discretion at any point throughout the term of the initial exploration period expiring in February, 2028.

The resulting ownership structure is therefore expected to be as follows.

Gil Holzman, president and chief executive officer of Eco, commented: "Completion of the Block 1 CBK farmdown marks another important milestone in our strategic framework with Navitas, extending our partnership into South Africa and demonstrating the value of our growing collaboration across multiple jurisdictions.

"Navitas is a highly experienced global operator and producer with an exceptional track record of developing offshore resources. Their expertise, tied with South Africa's growing need to bring new domestic gas supplies on line to meet in-country demand, provides strong foundations to progress the development of Block 1 CBK's sizable resources.

"Since announcing the farmdown, our technical teams have worked closely together, and we look forward to a smooth operational transition to Navitas and continued collaboration with our partners and in-country stakeholders to advance Block 1 CBK and unlock further value from the licence.

"We are grateful to the government of South Africa and particularly the Petroleum Agency of South Africa for the smooth and efficient regulatory process as well as to Navitas, our advisers and all those involved in reaching this milestone.

"More broadly, we continue to make good progress towards completing the other strategic transactions announced earlier this year, including the acquisition of JHI, the farmdown of our Namibian licences to BP, and negotiations for a new PSA [production-sharing agreement] covering our Orinduik acreage in Guyana. Each is progressing well and remains on track for finalization as guided during 2026, further strengthening and advancing Eco's portfolio across the Atlantic Margin."

About Eco (Atlantic) Oil & Gas Ltd.

Eco is a TSX Venture Exchange- and Alternative Investment Market-quoted, Atlantic Margin-focused oil and gas exploration company with offshore licence interests in Guyana, Namibia and South Africa. Eco aims to deliver material value for its stakeholders through its role in the energy transition to explore for low-carbon-intensity oil and gas in stable emerging markets close to infrastructure.

In offshore Guyana, in the proven Guyana-Suriname basin, the company operates a 100-per-cent working interest in the 1,354-square-kilometre Orinduik block. In Namibia, the company holds operatorship and an 85-per-cent working interest in three offshore petroleum licences (PELs 97, 99 and 100), representing a combined area of 22,893 square kilometres in the Walvis basin, which, on completion of the farmdown to BP, will reduce to 25 per cent in each licence. In offshore South Africa, Eco holds a 5.25-per-cent working interest in Block 3B/4B and a 37.5-per-cent working interest in Block 1 CBK, in the Orange basin, totalling approximately 37,510 square kilometres.