Namibia
-
The previously announced multi-block farm out process for all or part of Eco's four offshore Petroleum Exploration Licences ("PEL"): 97, 98, 99, and 100 has continued. Eco holds Operatorship and an 85% WI in each PEL representing a combined area of 28,593 km2 in the Walvis Basin.
-
Eco Atlantic is witnessing considerable interest in its licenses in Namibia and is currently assessing options to progress its exploration work programmes including a potential farm-out. Eco looks forward to providing more updates on the progress of this process in due course.
Guyana
Gil Holzman, President and Chief Executive Officer of Eco Atlantic, commented:
"We are pleased with the continued operational and financial progress achieved in recent months. Following completion of the farm-down of Block 3B/4B, we received a payment of US$8.3 million from our JV partners, with the potential for Eco to receive a further US$11.5 million in 2025, subject to certain milestones being achieved on Block 3B/4B. This demonstrated our commitment to unlocking value from our South African portfolio while maintaining exposure to the highly prospective Orange Basin.
"Eco also increased its exposure to South Africa's Orange Basin growing offshore energy acreage through the acquisition of a75% working interest in Block 1, while taking the strategic decision to relinquish Block 2B. Both of these developments further indicate Eco's ability to take strategically prudent decisions to maximise the Company's exposure to exciting jurisdictions.
"With active farm-out discussions ongoing in Namibia and Guyana, we are well-positioned to capitalise on high levels of interest from potential partners in these exciting exploration regions. We remain committed to delivering value for our shareholders and look forward to sharing further updates in the months ahead."
The Company's unaudited financial results and Management's Discussion and Analysis for the three and six months ended 30 September 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
| | September 30, | | March 31, |
| 2024 | | 2024 |
| Assets | | | |
| Current Assets | | | |
| Cash and cash equivalents | 7,946,212 | | 2,967,005 |
| Short-term investments | 75,000 | | 13,107 |
| Government receivable | 21,938 | | 26,970 |
| Amounts owing by license partners | - | | 49,578 |
| Accounts receivable and prepaid expenses | 1,276 | | 38,539 |
| Total Current Assets | 8,044,426 | | 3,095,199 |
| | | | |
| Non- Current Assets | | | |
| Petroleum and natural gas licenses | 20,695,406 | | 28,168,439 |
| Total Non-Current Assets | 20,695,406 | | 28,168,439 |
| Total Assets | 28,739,832 | | 31,263,638 |
| | | | |
| Liabilities | | | |
| Current Liabilities | |
| Accounts payable and accrued liabilities | 970,881 | | 1,163,546 |
| Advances from and amounts owing to license partners | 466,376 | | 81,952 |
| Total Current Liabilities | 1,437,257 | | 1,245,498 |
| | | | |
| Total Liabilities | 1,437,257 | | 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 | (1,524,581) | | (1,568,469) |
| Accumulated deficit | (111,860,768) | | (109,101,315) |
| | | | |
| Total Equity | 27,302,575 | | 30,018,140 |
| | | | |
| Total Liabilities and Equity | 28,739,832 | | 31,263,638 |
Income Statement
| | | Three months ended | | Six months ended |
| September 30, | | September 30, |
| | | 2024 | | 2023 | | 2024 | | 2023 |
| Revenue | | | | | | | | |
| Interest income | | 4,300 | | 21 | | 7,511 | | 1,686 |
| | | 4,300 | | 21 | | 7,511 | | 1,686 |
| Operating expenses: | | | | | | | | |
| Compensation costs | | 271,845 | | 236,556 | | 471,312 | | 420,998 |
| Professional fees | | 214,519 | | 202,557 | | 356,488 | | 298,560 |
| Operating costs, net | | 1,005,555 | | 411,201 | | 1,547,241 | | 761,381 |
| General and administrative costs | | 156,588 | | 160,569 | | 314,613 | | 273,042 |
| Share-based compensation | | - | | (15,817) | | - | | 95,695 |
| Foreign exchange loss (gain) | | (11,813) | | 139,795 | | 77,310 | | 99,745 |
| Total operating expenses | | 1,636,694 | | 1,134,861 | | 2,766,964 | | 1,949,421 |
| | | | | | | | | |
| Operating loss | | (1,632,394) | | (1,134,840) | | (2,759,453) | | (1,947,735) |
| | | | | | | | | |
| Other Non-Operating Charges and Write-downs | | | | | | | | |
| | | | | | | | | |
| Gain on settlement of liability | | - | | (200,640) | | - | | (200,640) |
| Fair value change in warrant liability | | - | | - | | - | | 261,720 |
| Share of losses of associate | | - | | (166,223) | | - | | (332,447) |
| Tax recovery | | - | | 536,694 | | - | | 536,694 |
| Net loss for the period | | (1,632,394) | | (965,009) | | (2,759,453) | | (1,682,408) |
| | | | | | | | | |
| Foreign currency translation adjustment | | 75,627 | | 9,901 | | 43,888 | | (285,775) |
| Comprehensive loss for the period | | (1,556,767) | | (955,108) | | (2,715,565) | | (1,968,183) |
| | | | | | | | | |
| Basic and diluted net loss per share: | | (0.004) | | (0.004) | | (0.007) | | (0.006) |
| Weighted average number of ordinary shares used in computing basic and diluted net loss per share | | 370,173,680 | | 369,421,234 | | 370,173,680 | | 368,390,620 |
Cash Flow Statement
| | Six months ended |
| | September 30, |
| 2024 | | 2023 |
| Cash flow from operating activities | | | |
| Net loss from continuing operations | (2,759,453) | | (1,682,408) |
| Items not affecting cash: | | | |
| Share-based compensation | - | | 95,695 |
| Fair value change in warrant liability | - | | (261,720) |
| Share of losses of companies accounted for at equity | - | | 332,447 |
| Changes in non‑cash working capital: | | | |
| Government receivable | 5,032 | | (8,056) |
| Accounts payable and accrued liabilities | (192,665) | | (2,805,578) |
| Accounts receivable and prepaid expenses | 37,263 | | 1,365,309 |
| Advance from and amounts owing to license partners | 41,715 | | 489,800 |
| Cash flow from operating activities | (2,868,108) | | (2,474,511) |
| | | | |
| | | | |
| | | | |
| Cash flow from investing activities | | | |
| Short-term investments | (61,893) | | - |
| Acquisition of interest in property | (150,000) | | - |
| Proceeds from Block 3B/4B farm-out | 8,015,320 | | 2,500,000 |
| Cash flow from investing activities | 7,803,427 | | 2,500,000 |
| | | | |
| | | | |
| Cash flow from financing activities | - | | - |
| | | | |
| Increase in cash and cash equivalents | 4,935,319 | | 25,489 |
| Foreign exchange differences | 43,888 | | (285,775) |
| Cash and cash equivalents, beginning of period | 2,967,005 | | 4,110,734 |
| | | | |
| Cash and cash equivalents, end of period | 7,946,212 | | 3,850,448 |
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
Charles Denley-Myerson | |
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 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 rns@lseg.com or visit www.rns.com.
SOURCE: Eco (Atlantic) Oil and Gas Ltd.
