Block 2B
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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
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A multi-block farm out 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.
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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
Gil Holzman, President and Chief Executive Officer of Eco Atlantic, commented:
"We continued to make significant progress across our asset base during the period. On Block 3B/4B, we announced the completion of Eco's farm-out agreement with TotalEnergies and QatarEnergy, which will see Eco receiving US$8.3 million now and additional US$11.5m in the future while maintaining a material fully carried interest in the Block.
"We also announced Eco's transaction with AOI, where the Company sold a 1% interest in Block 3B/4B in exchange for cancellation of all of Africa Oil's shares and warrants in Eco amount to 15% of the company. Eco continues to possess significant upside potential and exposure to assets in the Orange Basin offshore South Africa a hugely exciting region for hydrocarbon prospectivity.
"Our active farm-out processes in both Namibia and Guyana have seen Eco actively engaged with a number of potential high-calibre partners as we work to monetise these licences as fast as is practically possible for the benefit of all involved.We look forward to providing updates on material developments to all our stakeholders over the coming months."
The Company's unaudited financial results and Management's Discussion and Analysis for the three months ended 30 June 2024 are 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
| | | June 30, | | | March 31, | |
| | | 2024 | | | 2024 | |
| Assets | | | | | | |
| Current Assets | | | | | | |
| Cash and cash equivalents | | | 1,185,116 | | | | 2,967,005 | |
| Short-term investments | | | 13,107 | | | | 13,107 | |
| Government receivable | | | 16,772 | | | | 26,970 | |
| Amounts owing by license partners | | | 115,319 | | | | 49,578 | |
| Accounts receivable and prepaid expenses | | | 2,006 | | | | 38,539 | |
| Total Current Assets | | | 1,332,320 | | | | 3,095,199 | |
| | | | | | | | | |
| Non- Current Assets | | | | | | | | |
| Petroleum and natural gas licenses | | | 28,318,439 | | | | 28,168,439 | |
| Total Non-Current Assets | | | 28,318,439 | | | | 28,168,439 | |
| Total Assets | | | 29,650,759 | | | | 31,263,638 | |
| | | | | | | | | |
| Liabilities | | | | | | | | |
| Current Liabilities | | | | | | | | |
| Accounts payable and accrued liabilities | | | 791,417 | | | | 1,163,546 | |
| Advances from and amounts owing to license partners | | | - | | | | 81,952 | |
| Total Current Liabilities | | | 791,417 | | | | 1,245,498 | |
| | | | | | | | | |
| Total Liabilities | | | 791,417 | | | | 1,245,498 | |
| | | | | | | | | |
| Equity | | | | | | | | |
| Share capital | | | 122,088,498 | | | | 122,088,498 | |
| Restricted Share Units reserve | | | 920,653 | | | | 920,653 | |
| Warrants | | | 14,778,272 | | | | 14,778,272 | |
| Stock options | | | 2,900,501 | | | | 2,900,501 | |
| Foreign currency translation reserve | | | (1,600,208 | ) | | | (1,568,469 | ) |
| Accumulated deficit | | | (110,228,374 | ) | | | (109,101,315 | ) |
| | | | | | | | | |
| Total Equity | | | 28,859,342 | | | | 30,018,140 | |
| | | | | | | | | |
| Total Liabilities and Equity | | | 29,650,759 | | | | 31,263,638 | |
Income Statement
| | | Three months ended | |
| | | June 30, | |
| | | 2024 | | | 2023 | |
| Revenue | | | | | | |
| Interest income | | | 3,211 | | | | 1,665 | |
| | | | 3,211 | | | | 1,665 | |
| Operating expenses: | | | | | | | | |
| Compensation costs | | | 199,467 | | | | 184,442 | |
| Professional fees | | | 141,969 | | | | 96,003 | |
| Operating costs, net | | | 541,686 | | | | 350,180 | |
| General and administrative costs | | | 158,025 | | | | 112,473 | |
| Share-based compensation | | | - | | | | 111,512 | |
| Foreign exchange loss (gain) | | | 89,123 | | | | (40,050 | ) |
| Total operating expenses | | | 1,130,270 | | | | 814,560 | |
| | | | | | | | | |
| Operating loss | | | (1,127,059 | ) | | | (812,895 | ) |
| | | | | | | | | |
| Other Non-Operating Charges and Write-downs | | | | | | | | |
| | | | | | | | | |
| Fair value change in warrant liability | | | - | | | | 261,720 | |
| Share of losses of associate | | | - | | | | (166,224 | ) |
| Net loss for the period | | | (1,127,059 | ) | | | (717,399 | ) |
| | | | | | | | | |
| Foreign currency translation adjustment | | | (31,739 | ) | | | (295,676 | ) |
| Comprehensive loss for the period | | | (1,158,798 | ) | | | (1,013,075 | ) |
| | | | | | | | | |
| Basic and diluted net loss per share: | | | (0.003 | ) | | | (0.002 | ) |
| Weighted average number of ordinary shares used in computing basic and diluted net loss per share | | | 370,173,680 | | | | 367,348,680 | |
Cash Flow Statement
| | | Three months ended | |
| | | June 30, | |
| | | 2024 | | | 2023 | |
| Cash flow from operating activities | | | | | | |
| Net loss from continuing operations | | | (1,127,059 | ) | | | (717,399 | ) |
| Items not affecting cash: | | | | | | | | |
| Share-based compensation | | | - | | | | 111,512 | |
| Fair value change in warrant liability | | | - | | | | (261,720 | ) |
| Share of losses of companies accounted for at equity | | | - | | | | 166,224 | |
| Changes in non???cash working capital: | | | | | | | | |
| Government receivable | | | 10,198 | | | | (3,477 | ) |
| Accounts payable and accrued liabilities | | | (372,129 | ) | | | (1,045,330 | ) |
| Accounts receivable and prepaid expenses | | | 36,533 | | | | (1,283 | ) |
| Advance from and amounts owing to license partners | | | (147,693 | ) | | | 382,277 | |
| Cash flow from operating activities | | | (1,600,150 | ) | | | (1,369,196 | ) |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Cash flow from investing activities | | | | | | | | |
| Acquisition of interest in property | | | (150,000 | ) | | | - | |
| Cash flow from investing activities | | | (150,000 | ) | | | - | |
| | | | | | | | | |
| | | | | | | | | |
| Cash flow from financing activities | | | - | | | | - | |
| | | | | | | | | |
| Decrease in cash and cash equivalents | | | (1,750,150 | ) | | | (1,369,196 | ) |
| Foreign exchange differences | | | (31,739 | ) | | | (295,676 | ) |
| Cash and cash equivalents, beginning of period | | | 2,967,005 | | | | 4,110,734 | |
| | | | | | | | | |
| Cash and cash equivalents, end of period | | | 1,185,116 | | | | 2,445,862 | |
Notes to the Financial Statements
Basis of Preparation
The consolidated financial statements of the Company have been prepared on a historical cost basis with the exception of certain financial instruments that are measured at fair value. Historical cost is generally based on the fair value of the consideration given in exchange for assets.
Summary of Significant Accounting Policies
Critical accounting estimates
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized prospectively from the period in which the estimates are revised. The following are the key estimate and assumption uncertainties considered by management.
**ENDS**
For more information, please visit www.ecooilandgas.com or contact the following:
| Eco Atlantic Oil and Gas | c/o Celicourt +44 (0) 20 8434 2754 |
| Gil Holzman, CEO
Colin Kinley, COO
Alice Carroll, Executive Director | |
| Strand Hanson (Financial & Nominated Adviser) | +44 (0) 20 7409 3494 |
| James Harris
James Bellman | |
| Berenberg (Broker) | +44 (0) 20 3207 7800 |
| Matthew Armitt
Detlir Elezi | |
| Celicourt (PR) | +44 (0) 20 7770 6424 |
| Mark Antelme
Jimmy Lea | |
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.Ecoaims 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 6.25% 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 [email protected] or visit www.rns.com.
SOURCE: Eco (Atlantic) Oil and Gas Ltd.
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