Mr. Gil Holzman reports

ECO (ATLANTIC) OIL AND GAS LTD. ANNOUNCES EXPLORATION RIGHT & 75% INTEREST IN BLOCK 1

Further to Eco (Atlantic) Oil & Gas Ltd.'s farm-in agreement announced on June 5, 2024, formal approval has been received from the South Africa Department of Mineral and Petroleum Resources for both the exploration right and Section 11 transfer. Accordingly, Eco has now secured a 75-per-cent working interest and full operatorship of Block 1 offshore South Africa -- one of the most strategically positioned assets in the highly prospective Orange basin. The Section 11 approval was the final condition precedent to establishing full legal transfer of Eco's working interest in Block 1 from Tosaco Energy Pty. Ltd. and the associated milestone payment has been made by Eco.

This acquisition, completed through Eco's wholly owned subsidiary, Azinam South Africa Ltd., significantly expands the company's Southern African Orange basin footprint and positions it as a key operator at the forefront of one of the world's most active and hydrocarbon-rich basins. The remaining 25-per-cent interest is held by Tosaco.

Block 1, which spans a vast 19,929 square kilometres, straddles the border between South Africa and Namibia -- directly adjacent to recent world-class discoveries by Galp Energia (Mopane), Shell (Graff and La Rona), TotalEnergies (Venus), Rhino Resources (Capricornus-1X) and the legacy Kudu gas field. The block offers full margin-transect coverage from the shoreline to deepwater (shore to 263 kilometres offshore, in water depths up to 1,000 metres), encompassing both shallow and deepwater exploration potential.

As previously announced, Eco has already acquired and is analyzing an extensive and high-quality data set, including both 2-D and 3-D seismic surveys and regional well logs. The block includes the historic Soekor AF-1 gas discovery, which tested at 32.4 million standard cubic feet per day, and Soekor AE-1, which encountered oil and gas shows, providing clear evidence of an active petroleum system.

The company anticipates launching a formal farmout process in respect of its interest in Block 1 in August, 2025, with respect to which further updates will be provided in due course.

Block summary

Area:  19,929 square kilometres offshore South Africa

Location:  strategically positioned on the South Africa/Namibia maritime border

Extent:  from shoreline to approximately 263 kilometres offshore, covering the full margin transect

Geological scope:  broad spectrum of shallow and deepwater oil and gas prospects

Water depths:  shallow shelf to deepwater environments up to 1,000 metres

Proven petroleum system:  adjacent and geologically analogous to multiple recent discoveries -- Galp Energia (Mopane), Shell (Graff and La Rona), TotalEnergies (Venus), Rhino Resources (Capricornus-1X (light oil)), historic Soekor discoveries (AF-1 (32.4-million-standard-cubic-foot-per-day gas test) and AE-1 (oil and gas shows (Kudu gas field))

Eco remains committed to disciplined, value-driven exploration. With a strong technical foundation, entrepreneurial execution and an unwavering focus on high-impact opportunities, it continues to position itself as a trusted partner in unlocking frontier basins and delivering long-term shareholder value. The company has established itself well in Namibia, with four blocks currently being reviewed by international players to farm in, and has a near-term drilling opportunity in Guyana that it is currently negotiating with partners to participate in the block.

Gil Holzman, co-founder and chief executive officer of Eco, commented: "As the Orange basin continues to demonstrate its world-class hydrocarbon proof and potential, Eco's executive team has worked relentlessly over the past 18 months to secure a premier asset on the South African side of the basin. With the successful approval and execution of the exploration right and 75-per-cent working interest award, we are proud to have secured one of the largest and prospective blocks in the entire basin with a known hydrocarbon footprint -- Block 1 -- located directly on the South Africa/Namibia maritime border. Block 1 adds to our portfolio in the Orange basin, which also includes Block 3B/4B operated by TotalEnergies.

"We are grateful for the productive collaboration with the government of South Africa and its key agencies, particularly our valued partners at the Petroleum Agency South Africa (PASA). I was honoured to attend the signing ceremony yesterday at PASA's offices in Cape Town. This milestone reflects the dedication and strategic focus of our leadership team in securing an asset with existing hydrocarbon evidence and significant upside potential and aligning with our strategy to partner directly with governments to secure agreements in high-potential secure jurisdictions and to lay groundwork for future partnerships.

"Our technical team has already begun analyzing the extensive, high-quality 2-D and 3-D seismic and well logs data, which materially accelerates our path to drilling while reducing early-stage exploration costs and timelines. The block's prior discoveries, including tested gas flows and oil shows, confirm the presence of an active petroleum system.

"Initial interpretation is under way, and we are in the process of delineating early leads to develop the exploration strategy. We are already seeing significant inbound interests from international oil companies and mid-tier partners. As a result, we anticipate launching a formal farmout process in August, with further updates to follow in due course."

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.

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 four offshore petroleum licences -- PELs 97, 98, 99 and 100 -- representing a combined area of 28,593 square kilometres in the Walvis basin. Offshore South Africa, Eco holds a 5.25-per-cent working interest in Block 3B/4B and a 75-per-cent operated interest in Block 1, in the Orange basin, totalling approximately 37,510 square kilometres.

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