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
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
| | March 31, | | March 31, |
| 2024 | 2023 |
| Assets | | | |
| Current Assets | | | |
| Cash and cash equivalents | 2,967,005 | | 4,110,734 |
| Short-term investments | 13,107 | | 13,107 |
| Government receivable | 26,970 | | 22,494 |
| Amounts owing by license partners | 49,578 | | 477,578 |
| Accounts receivable and prepaid expenses | 38,539 | | 1,529,451 |
| Total Current Assets | 3,095,199 | | 6,153,364 |
| | | | |
| Non- Current Assets | | | |
| Investment in associate | - | | 8,612,267 |
| Petroleum and natural gas licenses | 28,168,439 | | 40,852,020 |
| Total Non-Current Assets | 28,168,439 | | 49,464,287 |
| Total Assets | 31,263,638 | | 55,617,651 |
| | | | |
| Liabilities | | | |
| Current Liabilities |
| Accounts payable and accrued liabilities | 1,163,546 | | 4,416,789 |
| Advances from and amounts owing to license partners | 81,952 | | 286,553 |
| Warrant liability | - | | 261,720 |
| Total Current Liabilities | 1,245,498 | | 4,965,062 |
| | | | |
| Total Liabilities | 1,245,498 | | 4,965,062 |
| | | | |
| Equity | | | |
| Share capital | 122,088,498 | | 121,570,983 |
| Restricted Share Units reserve | 920,653 | | 920,653 |
| Warrants | 14,778,272 | | 14,778,272 |
| Stock options | 2,900,501 | | 2,804,806 |
| Foreign currency translation reserve | (1,568,469) | | (1,458,709) |
| Accumulated deficit | (109,101,315) | | (87,963,416) |
| | | | |
| Total Equity | 30,018,140 | | 50,652,589 |
| | | | |
| Total Liabilities and Equity | 31,263,638 | | 55,617,651 |
Income Statement
| | | Year ended |
| | March 31, |
| | | 2024 | | 2023 |
| Revenue | | | | |
| Interest income | | 1,708 | | 66,571 |
| | | 1,708 | | 66,571 |
| Operating expenses: | | | | |
| Compensation costs | | 851,068 | | 905,974 |
| Professional fees | | 589,810 | | 694,304 |
| Operating costs, net | | 2,662,347 | | 33,039,264 |
| General and administrative costs | | 658,443 | | 848,893 |
| Share-based compensation | | 95,695 | | 2,968,294 |
| Foreign exchange loss (gain) | | (14,354) | | 559,947 |
| Total operating expenses | | 4,843,009 | | 39,016,676 |
| | | | | |
| Operating loss | | (4,841,301) | | (38,950,105) |
| | | | | |
| Other Non-Operating Charges and Write-downs | | | | |
| | | | | |
| Gain on settlement of liability | | 299,360 | | - |
| Fair value change in warrant liability | | 261,720 | | 2,980,042 |
| Share of losses of associate | | - | | (664,895) |
| Write down of investment in associate | | (8,612,267) | | - |
| Write down of license | | (8,782,105) | | - |
| Net loss for the year from continuing operations, before taxes | | (21,674,593) | | (36,634,958) |
| Tax recovery | | 536,694 | | - |
| Net loss for the year from continuing operations, after taxes | | (21,137,899) | | (36,634,958) |
| Gain from discontinued operations, after-tax | | - | | 80,204 |
| Net loss for the year | | (21,137,899) | | (36,554,754) |
| | | | | |
| Foreign currency translation adjustment | | (109,760) | | (148,982) |
| Comprehensive loss for the year | | (21,247,659) | | (36,703,736) |
| | | | | |
| Basic and diluted net loss per share: | | | | |
| From continuing operations | | (0.06) | | (0.10) |
| From discontinued operations | | - | | - |
| Weighted average number of ordinary shares used in computing basic and diluted net loss per share | | 369,287,447 | | 349,622,239 |
Cash Flow Statement
| | Year ended |
| | March 31, |
| 2024 | | 2023 |
| Cash flow from operating activities - continued operations | | | |
| Net loss from continuing operations | (21,137,899) | | (36,634,958) |
| Items not affecting cash: | | | |
| Share-based compensation | 95,695 | | 2,968,295 |
| Fair value change in warrant liability | (261,720) | | (2,980,042) |
| Share of losses of companies accounted for at equity | - | | 664,895 |
| Write down of equity investment | 8,612,267 | | - |
| Write down of license | 8,782,105 | | - |
| Changes in non‑cash working capital: | | | |
| Government receivable | (4,476) | | 4,993 |
| Accounts payable and accrued liabilities | (3,134,252) | | 2,484,966 |
| Accounts receivable and prepaid expenses | 1,490,912 | | (1,271,540) |
| Advance from and amounts owing to license partners | 223,399 | | (191,025) |
| Cash flow from operating activities - continued operations | (5,333,969) | | ( 34,954,416) |
| | | | |
| Cash flow from operating activities - discontinued operations | - | | (839,029) |
| | | | |
| Cash flow from investing activities | | | |
| Short-term investments | - | | 39,511 |
| Acquisition of interest in property | | | (1,598,986) |
| Acquisition of Orinduik BV | (700,000) | | - |
| Proceeds from Block 3B/4B farm-out | 5,000,000 | | - |
| Cash flow from investing activities - continued operations | 4,300,000 | | (1,559,475) |
| | | | |
| Cash flow from investing activities - discontinued operations | - | | 2,507,713 |
| | | | |
| Cash flow from financing activities | | | |
| Proceeds from private placements, net | - | | 35,666,089 |
| Cash flow from financing activities | - | | 35,666,089 |
| | | | |
| Increase (decrease) in cash and cash equivalents | (1,033,969) | | 820,882 |
| Foreign exchange differences | (109,760) | | (148,982) |
| Cash and cash equivalents, beginning of year | 4,110,734 | | 3,438,834 |
| | | | |
| Cash and cash equivalents, end of year | 2,967,005 | | 4,110,734 |
**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. 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.
View the original press release on accesswire.com
