Eco Atlantic Oil & Gas has successfully executed a farm-out agreement for its Sharon License, transferring operatorship to a wholly Namibian-owned company in a strategic move that signals a refined focus for its Namibian ambitions while advancing local capacity building.
The company’s consolidated financial statements for the period ending September 30, 2025, reveal that on September 15, 2025, Eco Atlantic finalized an agreement to sell its entire 85 percent working interest in the Sharon License, also known as Petroleum Exploration License 098, to Lamda Energy. This marks a significant divestment, transferring all obligations and liabilities for the 5,700 square kilometer offshore block.
Lamda Energy is described as a privately owned and operated offshore oil and gas company with an experienced operating team. Crucially, it will become a wholly Namibian-owned qualified offshore operator upon Ministerial approval. This transition of a deep-water offshore license to a Namibian operator represents a tangible step towards the government’s stated goals of fostering local expertise and ownership in the strategic hydrocarbon sector.
Eco Atlantic has committed to ensuring a smooth and responsible handover by retaining a board seat at Lamda Energy to support a comprehensive transition and knowledge transfer. The company explicitly called this a significant milestone in building local capacity and advancing inclusive energy development.
Financially, the agreement includes a potentially lucrative future clause for Eco Atlantic. Should Lamda Energy later farm-out a portion of its interest to a third party, it will be required to make contingent payments to Eco Atlantic at a fixed quantum per percentage interest farmed out, up to a maximum of $2 million. This provides Eco Atlantic with a potential future revenue stream from the Sharon block without having to bear any of the ongoing exploration costs or risks.
This divestment allows Eco Atlantic to concentrate its financial and managerial resources on its three other Namibian licenses: Cooper, Guy, and Tamar. All four of the company’s Namibian licenses, including the now-divested Sharon, received a formal 12-month extension to their First Renewal Exploration Period on August 27, 2025, with revised expiry dates now set for August 26, 2026.
The carrying value of the company’s petroleum and natural gas licenses in Namibia stood at $15.5 million as of September 30, 2025, representing the vast majority of its global asset base outside of Guyana. The Cooper License covers approximately 5,788 square kilometers, while the Tamar License covers 5,649 square kilometers. In August 2024, the company purchased the license to 1,324 kilometers of existing 2D seismic survey in the Tamar Block, indicating active and ongoing technical work to de-risk the asset.
The Guy License is the largest in the portfolio at 11,457 square kilometers. Across all licenses, Eco Atlantic maintains an 85 percent working interest, with the National Petroleum Corporation of Namibia holding a 10 percent carried interest and other local partners holding the remaining 5 percent.
Source: namibiaoilandgas.com