Guyana
Gil Holzman, President and Chief Executive Officer of Eco Atlantic, commented:
"We continue advancing Eco's promising exploration licenses in key hydrocarbon regions. During the period, we completed our transaction with Africa Oil on Block 3B/4B, securing significant exposure to a multi-billion-barrel prospect. This deal also enabled us to cancel approximately CAD $11.5 million in shares and welcome Emily Ferguson to our Board of Directors.
While the farmout processes are progressing, we are in advanced discussions on potential deals in both Namibia and Guyana and look forward to updating the market in due course. Meanwhile, offshore South Africa, we are excited about the upcoming drilling campaign on Block 3B/4B with our JV partners and the formal issuance of Block 1 in the Orange Basin.
With a strong balance sheet and an additional $11.5 million expected from the 3B/4B deal upon milestone completions, Eco is well-positioned for a dynamic period of exploration and deal making."
The Company's unaudited financial results and Management's Discussion and Analysis for the three and six months ended 31 December 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.
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
| | | December 31, | | | March 31, | |
| | | 2024 | | | 2024 | |
| Assets | | | | | | |
| Current Assets | | | | | | |
| Cash and cash equivalents | | | 6,027,801 | | | | 2,967,005 | |
| Short-term investments | | | 75,000 | | | | 13,107 | |
| Government receivable | | | 35,644 | | | | 26,970 | |
| Amounts owing by license partners | | | 165,821 | | | | 49,578 | |
| Accounts receivable and prepaid expenses | | | - | | | | 38,539 | |
| Total Current Assets | | | 6,304,266 | | | | 3,095,199 | |
| | | | | | | | | |
| Non- Current Assets | | | | | | | | |
| Petroleum and natural gas licenses | | | 20,875,860 | | | | 28,168,439 | |
| Total Non-Current Assets | | | 20,875,860 | | | | 28,168,439 | |
| Total Assets | | | 27,180,126 | | | | 31,263,638 | |
| | | | | | | | | |
| Liabilities | | | | | | | | |
| Current Liabilities | | | | | | | | |
| Accounts payable and accrued liabilities | | | 829,310 | | | | 1,163,546 | |
| Advances from and amounts owing to license partners | | | - | | | | 81,952 | |
| Total Current Liabilities | | | 829,310 | | | | 1,245,498 | |
| | | | | | | | | |
| Total Liabilities | | | 829,310 | | | | 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 | | | (1,563,110 | ) | | | (1,568,469 | ) |
| Accumulated deficit | | | (112,773,998 | ) | | | (109,101,315 | ) |
| | | | | | | | | |
| Total Equity | | | 26,350,816 | | | | 30,018,140 | |
| | | | | | | | | |
| Total Liabilities and Equity | | | 27,180,126 | | | | 31,263,638 | |
Income Statement
| | | Three months ended | | Nine months ended |
| December 31, | | December 31, |
| | | 2024 | | 2023 | | 2024 | | 2023 |
| Revenue | | | | | | | | |
| Interest income | | 52,081 | | 17 | | 59,592 | | 1,703 |
| | | 52,081 | | 17 | | 59,592 | | 1,703 |
| Operating expenses: | | | | | | | | |
| Compensation costs | | 255,939 | | 208,201 | | 727,251 | | 629,199 |
| Professional fees | | 64,689 | | 89,877 | | 421,177 | | 388,437 |
| Operating costs, net | | 550,458 | | 567,682 | | 2,097,699 | | 1,329,063 |
| General and administrative costs | | 164,086 | | 180,744 | | 478,699 | | 453,786 |
| Share-based compensation | | - | | - | | - | | 95,695 |
| Foreign exchange loss (gain) | | (69,861) | | (111,839) | | 7,449 | | (12,094) |
| Total operating expenses | | 965,311 | | 934,665 | | 3,732,275 | | 2,884,086 |
| | | | | | | | | |
| Operating loss | | (913,230) | | (934,648) | | (3,672,683) | | (2,882,383) |
| | | | | | | | | |
| Other Non-Operating Charges and Write-downs | | | | | | | | |
| | | | | | | | | |
| Gain on settlement of liability | | - | | - | | - | | (200,640) |
| Fair value change in warrant liability | | - | | - | | - | | 261,720 |
| Share of losses of associate | | - | | (166,224) | | - | | (498,671) |
| Tax recovery | | - | | - | | - | | 536,694 |
| Net loss for the period | | (913,230) | | (1,100,872) | | (3,672,683) | | (2,783,280) |
| | | | | | | | | |
| Foreign currency translation adjustment | | (38,529) | | 101,779 | | 5,359 | | (183,996) |
| Comprehensive loss for the period | | (951,759) | | (999,093) | | (3,667,324) | | (2,967,276) |
| | | | | | | | | |
| Basic and diluted net loss per share: | | (0.002) | | (0.003) | | (0.010) | | (0.008) |
| 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 | | 368,987,135 |
Cash Flow Statement
| | | Nine months ended | |
| | | December 31, | |
| | | 2024 | | | 2023 | |
| Cash flow from operating activities | | | | | | |
| Net loss from operations | | | (3,672,683 | ) | | | (2,783,280 | ) |
| 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 | | | - | | | | 498,671 | |
| Changes in non???cash working capital: | | | | | | | | |
| Government receivable | | | (8,674 | ) | | | 4,166 | |
| Accounts payable and accrued liabilities | | | (334,236 | ) | | | (2,897,287 | ) |
| Accounts receivable and prepaid expenses | | | 38,539 | | | | 1,449,931 | |
| Advance from and amounts owing to license partners | | | (590,482 | ) | | | 357,449 | |
| Cash flow from operating activities | | | (4,567,536 | ) | | | (3,536,375 | ) |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Cash flow from investing activities | | | | | | | | |
| Short-term investments | | | (61,893 | ) | | | - | |
| Acquisition of interest in property | | | (150,000 | ) | | | - | |
| Acquisition of Orinduik BV (*) | | | - | | | | (700,000 | ) |
| Proceeds from Block 3B/4B farm-out | | | 7,834,866 | | | | 2,500,000 | |
| Cash flow from investing activities | | | 7,622,973 | | | | 1,800,000 | |
| | | | | | | | | |
| | | | | | | | | |
| Cash flow from financing activities | | | - | | | | - | |
| | | | | | | | | |
| Increase (decrease) in cash and cash equivalents | | | 3,055,437 | | | | (1,736,375 | ) |
| Foreign exchange differences | | | 5,359 | | | | (183,996 | ) |
| Cash and cash equivalents, beginning of period | | | 2,967,005 | | | | 4,110,734 | |
| | | | | | | | | |
| Cash and cash equivalents, end of period | | | 6,027,801 | | | | 2,190,363 | |
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 5.25% 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.
View the original press release on ACCESS Newswire
