Mr. Gil Holzman reports

ECO (ATLANTIC) OIL AND GAS LTD ANNOUNCES MINISTERIAL APPROVAL - NAMIBIA LICENCES FARM-DOWN

On Oct. 1, 2026, Eco (Atlantic) Oil & Gas Ltd. received formal ministerial approval from the Minister of Industries, Mines and Energy of Namibia for the transfer and assignment, relating to the company's previously announced farmdown of a 60-per-cent participating interest (PI) in all three of its petroleum exploration licences (PELs) offshore Namibia to BP Namibia Energy Ltd., a wholly owned subsidiary of BP Exploration Operating Company Ltd.

Further to the announcement on April 13, 2026, regarding the farmout agreement (FOA), Eco, through its wholly owned subsidiaries -- Azinam Group Ltd., Eco Oil & Gas Namibia Pty. Ltd. (Eco Namibia), and Eco Oil & Gas Services Pty. Ltd. (Eco Services) -- have agreed to farm out an aggregate of 60 per cent of its participating interest, transferring operatorship to BP in respect of Block 2012A PEL97 (Cooper licence), blocks 2111B and 2211A PEL99 (Guy licence), and blocks 2211B and 2311A PEL100 (Tamar licence). The ministerial approval represents the final governmental consent required under Section 11 of Namibia's Petroleum (Exploration and Production) Act for the transfer and assignment of a 60-per-cent participating interest in PELs 97, 99 and 100 from Eco to BP. Following receipt of this final ministerial approval, the parties are now completing the remaining closing deliverables, and completion is expected shortly. A further announcement will be made on completion.

The transaction enables the joint venture (JV) to embark on a comprehensive exploration work program, and the company to substantially reduce its financing exposure while retaining material upside exposure to the licences and introduces a major international operator to progress the blocks' exploration activities. Eco intends to use the cash proceeds of the transaction to support the company's continuing growth through exploration and appraisal activities across its Atlantic Margin portfolio and for general working capital purposes.

Transaction highlights:

• A one-time cash consideration of $2.7-million (U.S.) to be received by Eco on completion;
• Eco will retain a 25-per-cent participating interest in PEL97, PEL99 and PEL100 (Eco's 25-per-cent retained PI);
• BP to carry 100 per cent of Eco's 25-per-cent retained PI as well as Eco's proportionate share of the Namcor (10 per cent) and the local partners (5 per cent) participating interests across PEL97, PEL99 and PEL100 during the current exploration phase;
• The proposed exploration work program approved by the government includes completing seismic reprocessing on PEL97 and acquiring at least 3,000 square kilometres of new 3-D seismic data on PEL99 and PEL100;
• If BP and partners elect to enter the second renewal period of the licence term in 2028 and commit to drilling an exploration well, Eco will have the option to either:
  1. Exercise a put option to transfer an additional 10-per-cent PI to BP in exchange for a full carry on Eco's remaining 15-per-cent PI subject to a cap of $21-million (U.S.) net to Eco for each well on each of the licences (PEL97, PEL99 and PEL100);
  2. Or elect to retain its 25-per-cent PI of the costs associated with such drilling of a well during the second renewal period;
• The maximum aggregate carry consideration payable by BP in respect of each put option (should all put options namely on PEL97, PEL99 and PEL100 be exercised) is $63-million (U.S.) with a cap of $21-million (U.S.) per put option;
• Eco can elect to retain its 25-per-cent paying interest and/or to farm out to other potential partners (subject to such partners meeting technical and financial qualifications);
• The transaction constitutes an arm's-length transaction for purposes of TSX Venture Exchange policies; no finder's fees are payable in connection with the transaction; no insiders of the company have any interest in the transaction.

Gil Holzman, president and chief executive officer of Eco (Atlantic), commented: "Securing final regulatory approval for the farmdown of our Namibian portfolio to BP is a significant milestone for Eco and brings us towards completing this landmark transaction.

"We are grateful to Her Excellency the President of the Republic of Namibia and the Namibian authorities, particularly the Ministry of Industries, Mines and Energy and the Upstream Petroleum Unit, for their efficient, professional and collaborative approach, which enabled the approval process to progress within the anticipated timeframe. We also thank BP, Namcor and our local partners for their continued co-operation and support throughout the process.

"With final regulatory approval now secured, we will complete the remaining closing formalities as swiftly as possible and look forward to moving full steam ahead with BP, Namcor and our local partners into the next phase of exploration across these highly prospective Walvis basin licences.

"With our significant South Africa and Namibia transactions now successfully progressed, our focus turns to delivering the remaining key milestones across the portfolio, including finalizing our PSA negotiations in Guyana and completing the JHI acquisition announced earlier this year."

About Eco (Atlantic) Oil and Gas Ltd.

Eco (Atlantic) is a TSX-V- 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.

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