Eco (Atlantic) Oil and Gas Ltd Announces Audited Results for the Year Ended 31 March 2024

30.07.2024  |  ACCESS Newswire

TORONTO, July 30, 2024 - Eco (Atlantic) Oil & Gas Ltd. (AIM:ECO)(TSX‐V:EOG), the oil and gas exploration company focused on the offshore Atlantic Margins, is pleased to announce its audited results for the year ended 31 March 2024.

Highlights:

Financials (as at 31 March 2024)

• The Company had cash and cash equivalents of US$2.97 million and no debt as at 31 March 2024.

  • Following a significant reduction in costs (including G&A, professional fees and operating expenses) as of the time of publication, Eco has a cash position of ca.US$1.5 million.

• The Company had total assets of US$31.3 million, total liabilities of US$1.25 million and total equity of US$30.0 million as at 31 March 2024.

Post-period end

• Following the successful farm-out deal of Block 3B/4B, Eco expects to receive a first tranche of US$8.3 million during August 2024, subject to customary closing conditions being met. The resultant proceeds are expected to give Eco a cash and cash equivalents position of c.US$10 million, with no near-term capital commitments for operational expenses.

Operations:

South Africa

Block 1 (post-period end)

• In June 2024, Eco announced a Farm-In into Block 1 Offshore South Africa Orange Basin. The Company will acquire a 75% Working Interest ("WI") from Tosaco Energy (Proprietary) Limited ("Tosaco") and will become Operator of a new Exploration Right.

• Block 1 has significant 2D and 3D seismic data already completed and no additional seismic acquisition or drilling of wells is committed in the three-year carried period. Eco intends to complete the interpretation and analysis required for its planned Work Program with its in-house exploration team. The Farm-in is subject, inter alia, to normal Governmental approvals and no field activity is currently planned that requires environmental permitting.

Block 3B/4B

• In March 2024, Eco and its JV partners signed a farm-out transaction with TotalEnergies EP South Africa B.V., who will become Operator ("TotalEnergies") and QatarEnergy International E&P LLC ("QatarEnergy"). Under the agreement, Eco would retain a 13.75% Participating Interest in Block 3B/4B, offshore the Republic of South Africa.

Post-period end

• On July 29, 2024, the Company announced the signing of an agreement to sell a 1% interest in Block 3B/4B in exchange for cancellation of all of Africa Oil's shares and warrants in Eco (worth C$ 11.5m). Upon Completion of the transaction, Eco will hold a fully carried 5.25% interest in Block 3B/4B Offshore South Africa, reducing from the current 6.25%.

• Upon closing, which is expected to occur in August 2024, Total will assume operatorship and will lead the drilling planning and preparations.

Block 2B (post-period end)

• In June 2024, the Company relinquished its 50% WI Operated offshore Block 2B where it drilled its 2022 Gazania-1 well offsetting the AJ-1 oil discovery. The Company has completed all necessary documentation, and environmental audits, and has informed the Petroleum Agency of South Africa ("PASA"), the regulator for the Government of South Africa.

Namibia

• A multi-block farmout process remains underway for all or part of Eco's four offshore Petroleum Exploration Licences ("PEL"): 97, 98, 99, and 100. Eco holds Operatorship and an 85% Working Interest in each PEL representing a combined area of 28,593 km² in the Walvis Basin.

Post-period end

• Eco added ~1,383km 2D data licensed on PEL100 (Tamar block) to its database, which is being technically evaluated and interpreted by the team to define additional seismic acquisition areas within the Block, along with new leads and prospects.

Guyana

• An active farmout process continues for the offshore Orinduik Block. Eco was encouraged to note the recent news from neighbouring Stabroek block, where the Operator ExxonMobil is planning for a seventh development at Hammerhead.

Investor Meet Company

• Gil Holzman, President and Chief Executive Officer will provide an Annual Results Investor Update via Investor Meet Company today at 14:00 BST. The presentation is open to all existing and potential shareholders and questions can be asked at any time during the live presentation. More information about the presentation can be found in the Company's announcement of 24 July 2024.

Gil Holzman, President and Chief Executive Officer of Eco Atlantic, commented:

"We made considerable progress across our asset portfolio during the financial year to 31 March 2024. This has been achieved at a time when we have had a strict focus on costs, which has seen the Company operate with non dilutive financings for the last two years, and agree a farm-out on Block 3B/4B which will significantly increase our cash resources, and leaves tremendous upside potential on the table in the event a discovery is drilled on the block.

"In Namibia and Guyana, we have active farm-out processes underway, and we are very upbeat about the number and calibre of the companies we have had in our data rooms. Both jurisdictions remain at the forefront of global hydrocarbon exploration and we are confident of delivering a positive update on both in due course.

"We were also pleased to announce the deal with Africa Oil yesterday, which saw us agree the sale of a 1% interest in the Block in exchange for the cancellation of all of AOI's shares and warrants in Eco, worth C$11.5 million. We are grateful to Africa Oil for their support since 2017, and this agreement will enable us to eliminate a c.16% overhang in Eco's shares, which are locked up until the transaction closes and the shares and warrants are cancelled. I would also add that the deal was agreed using an US$840 million valuation for Block 3B/4B, which values Eco's 5.25% holding at ca.US$44 million.

"As ever, we continue to work hard to deliver value for all of our stakeholders and we look forward to providing further market updates in due course."

The Company's audited financial statement for the year ended 31 March 2024 is available for download on the Company's website at www.ecooilandgas.com and on Sedar at www.sedar.com.

The following are the Company's Balance Sheet, Income Statements, Cash Flow Statement and selected notes from the annual Financial Statements. All amounts are in US Dollars, unless otherwise stated.

Balance Sheet

Income Statement

Cash Flow Statement

**ENDS**

For more information, please visit www.ecooilandgas.com or contact the following:

About Eco Atlantic:

Eco Atlantic is a TSX-V and AIM-quoted Atlantic Margin-focused oil and gas exploration company with offshore license 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% Working Interest in the 1,354 km² Orinduik Block. In Namibia, the Company holds Operatorship and an 85% Working Interest in four offshore Petroleum Licences: PELs: 97, 98, 99, and 100, representing a combined area of 28,593 km² in the Walvis Basin. Offshore South Africa, Eco holds a 20% Working Interest in Block 3B/4B and pending government approval a 75% Operated Interest in Block 1, in the Orange Basin, totalling some 37,510km².

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

SOURCE: Eco (Atlantic) Oil and Gas Ltd.