TIDMECO
RNS Number : 0633R
Eco (Atlantic) Oil and Gas Ltd.
27 February 2023
27 February 2023
ECO (ATLANTIC) OIL & GAS LTD.
("Eco," "Eco Atlantic," "Company," or together with its
subsidiaries, the "Group")
Unaudited Results for the three and nine months ended 31
December 2023
Corporate and Operational Update
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 results for the three
and nine months ended 31 December 2022, and to provide a corporate
and operational update.
Highlights:
Financials (as at 31 December 2022)
-- The Company had cash and cash equivalents of US$14.5 million
and no debt as at 31 December 2022.
-- The Company had total assets of US$68.0 million, total
liabilities of US$17.8 million and total equity of US$50.1 million
as at 31 December 2022.
Operations:
South Africa
Block 2B
-- In November 2022, the JV Partners submitted a Production
Right Application to the Petroleum Agency of SouthAfrica ("PASA"),
based on the existing oil discovery of AJ-1 and potential future
operations.
-- Following the drilling of the Gazania-1 well in November
2022, further analysis of the well data is being undertaken to
determine next steps on the Block.
-- Eco and its JV partners continue to believe that Block 2B
contains considerable hydrocarbon resources and further updates
will be made in due course on how the JV partners will look to
deliver value from the licence for the benefit of all
stakeholders.
Block 3B/4B
-- In December 2022, Eco received regulatory approval from the
Department of Mineral Resources and Energy ("DMRE") of South Africa
and Petroleum Agency South Africa ("PASA") in respect of its
acquisition of an additional 6.25% participating interest in the
Block (the "Acquisition"), giving Eco an overall interest of
26.25%.
-- As the final instalment of the share consideration due in
respect of the Acquisition, Eco is issuing an additional 1,666,666
common shares to the Lunn Family Trust, the Vendor (the "Final
Consideration Shares").
-- The Company and its JV partners are progressing plans to
conduct a two-well campaign on Block 3B/4B and in addition continue
to progress the collaborative farm-out process, up to 55% gross
working interest in the Block, with various potential parties.
-- The JV Partners have selected a leading South African
environmental consulting firm to conduct a comprehensive
Environmental and Social Impact Assessment (ESIA) process
commencing in March 2023 in preparation for permitting and drilling
activity on the Block.
-- Africa Oil Corp. the Operator of the Block is preparing a new
51-101 Competent Person's Report following the completion of the 3D
data reprocessing and targets and leads identification.
Namibia
-- Namibia witnessed some of the largest oil exploration
discoveries in the world in 2022 and with significant exploration
activity set to continue this year, the Company believes that its
highly strategic acreage in-country will remain of considerable
interest to operators looking to enter the region.
-- Eco continues to explore possible farm out opportunities with
its four licences in the region and will update investors on
developments accordingly.
Guyana
-- Eco and its JV partners on the Orinduik Block, offshore
Guyana, continue to work towards identifying the optimal drilling
target and Eco plans to drill at least one well into a light oil
Cretaceous target in the next 12-18 months.
-- With an excess of 11 billion barrels of oil discovered in
Guyana to date, the region has become one of the most prolific
hydrocarbon basins in the world. Eco continues to work towards
unlocking the potential of the Orinduik Block as fast as
practically possible.
Gil Holzman, President and Chief Executive Officer of Eco
Atlantic, commented:
"We have had a busy start to the year, and I am pleased to
report substantial progress across a number of fronts in our
exciting exploration portfolio.
Following our drilling campaign on Block 2B, offshore South
Africa, in Q4 2022, we continue to analyse the well data obtained
from the Gazania-1 well. We remain of the view that considerable
untapped potential remains in the asset and we are working with our
partners on the Block to plan our next steps, in order to deliver
value for all stakeholders.
Significant progress continues to be made on Block 3B/4B,
offshore South Africa, with a number of workstreams progressing
well. As we have said previously, we are conducting a farm out
process on the licence and we are looking ahead to commencing a two
well drilling program once ESIA is completed and permits
obtained.
Both Guyana and Namibia continue to yield sizeable discoveries,
and we are seeing unprecedented levels of interest for exploration
assets in these regions. As such, we continue to progress our
highly strategic acreage positions in both Guyana and Namibia and
we look forward to updating the market on our farm out program in
Namibia and our plans for a drilling campaign in Guyana as soon as
practically possible.
We remain excited about the potential for 2023 and we look
forward to keeping all stakeholders updated throughout the course
of the year."
Admission of the Common Shares
Application has been made for admission of the Final
Consideration Shares, which will rank pari passu with existing
Common Shares, to trading on AIM ("Admission"). It is expected that
Admission will become effective, and trading will commence on or
around 8.00 a.m. on 3 March 2023 .
Following Admission of the Consideration Shares, the enlarged
issued share capital of the Company will be 367,348,680 Common
Shares. The above figure may be used by shareholders as the
denominator for the calculations by which they will determine if
they are required to notify their interest in, or a change to their
interest in, the share capital of the Company.
The Company's unaudited financial results for the three and nine
months ended 31 December 2022, together with Management's
Discussion and Analysis as at 31 December 2022, are available to
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
December 31, March 31,
------------------------------------------------
2022 2022
------------------------------------------------ --------------------------- -------------------
(Unaudited) (Audited)
--------------------------- -------------------
Assets
Current Assets
Cash and cash equivalents 14,461,888 3,438,834
Short-term investments 55,266 52,618
Government receivable 42,468 27,487
Amounts owing by license partners, 4,279,350 -
net
Accounts receivable and prepaid
expenses 788,597 257,911
Assets held for sale - 2,061,734
------------------------------------------------ --------------------------- -------------------
Total Current Assets 19,627,569 5,838,584
------------------------------------------------ --------------------------- -------------------
Non- Current Assets
Investment in associate 9,000,254 9,277,162
Petroleum and natural gas licenses 39,351,990 30,753,034
------------------------------------------------ --------------------------- -------------------
Total Non-Current Assets 48,352,244 40,030,196
------------------------------------------------ --------------------------- -------------------
Total Assets 67,979,813 45,868,780
------------------------------------------------ --------------------------- -------------------
Liabilities
Current Liabilities
Accounts payable and accrued liabilities 17,003,778 1,931,823
Current liabilities related to assets
held for sale - 473,254
Warrant liability 838,789 3,241,762
------------------------------------------------
Total Current Liabilities 17,842,567 5,646,839
Total Liabilities 17,842,567 5,646,839
------------------------------------------------ --------------------------- -------------------
Equity
Share capital 121,570,983 63,141,609
Shares to be issued - 20,766,996
Restricted Share Units reserve 433,153 267,669
Warrants 14,778,272 7,806,000
Stock options 2,560,023 958,056
Foreign currency translation reserve (1,846,026) (1,309,727)
Accumulated deficit (87,359,159) (51,408,662)
------------------------------------------------ --------------------------- -------------------
Total Equity 50,137,246 40,221,941
------------------------------------------------ --------------------------- -------------------
Total Liabilities and Equity 67,979,813 45,868,780
------------------------------------------------ --------------------------- -------------------
Income Statement
Three months ended Nine months ended
December 31, December 31,
------------------------------------------- ----------------------------------------------
2022 2021 2022 2021
--------------------- -------------------- --------------------- -----------------------
Unaudited Unaudited
------------------------------------------- ----------------------------------------------
Revenue
Interest
income 36,731 - 93,183 8,435
--------------------- -------------------- --------------------- -----------------------
36,731 - 93,183 8,435
Operating
expenses
:
Compensation
costs 217,192 116,651 697,106 526,738
Professional
fees 131,188 79,763 591,767 261,262
Operating costs,
net 19,880,507 179,885 32,921,918 597,703
General and
administrative
costs 120,692 121,569 728,846 430,926
Share-based
compensation 484,125 2,373 2,236,011 14,083
Foreign exchange
loss (333,104) (12,235) 642,117 40,987
--------------------- -----------------------
Total
operating
expenses 20,500,600 488,006 37,817,765 1,871,699
--------------------- -------------------- --------------------- -----------------------
Operating loss (20,463,869) (488,006) (37,724,582) (1,863,264)
Fair value
change
in warrant
liability 556,277 1,236,827 2,402,973 1,874,016
Share of losses
of
company
accounted
for at equity (92,303) - (276,908) -
--------------------- -------------------- --------------------- -----------------------
Net profit
(loss)
for the period
from
continuing
operations (19,999,895) 748,821 (35,598,517) 10,752
Gain (loss) from
discontinued
operations,
after-tax 546,343 (512,778) (351,980) (1,000,969)
Net profit
(loss)
for the period (19,453,552) 236,043 (35,950,497) (990,217)
Foreign currency
translation
adjustment 16,803 35,160 (536,299) 26,925
Comprehensive
profit
(loss) for the
period (19,436,749) 271,203 (36,486,796) (963,292)
--------------------- -------------------- --------------------- -----------------------
Basic and
diluted
net loss per
share
attributable to
equity
holders of the
parent (0.055) (0.002) (0.104) (0.005)
===================== ==================== ===================== =======================
Weighted
average
number of
ordinary
shares used in
computing
basic and
diluted
net loss per
share 365,355,650 199,893,636 344,158,567 194,041,560
===================== ==================== ===================== =======================
Cash Flow Statement
Nine months ended
December 31,
---------------------------------------------
2022 2021
(Unaudited) (Unaudited)
---------------------- ---------------------
Cash flow from operating activities
Net loss from continuing operations (35,598,517) 10,752
Net loss from discontinued operations (351,980) (1,000,969)
Items not affecting cash:
Share-based compensation 2,236,012 14,083
Depreciation and amortization - 57,187
Accrued interest - 8,535
Revaluation of warrant liability (2,402,973) (1,874,016)
Share of losses of companies accounted for 276,908 -
at equity
Changes in non--cash working capital:
Government receivable (14,981) 12,444
Accounts payable and accrued liabilities 15,243,249 145,697
Accounts receivable and prepaid expenses 7,969,314 (59,781)
Reallocation to discontinued operations cashflows (171,294) -
Advance from and amounts owing to license
partners (12,878,306) (298,337)
---------------------------------------------------- ---------------------- ---------------------
(25,692,568) (2,984,405)
---------------------------------------------------- ---------------------- ---------------------
Net change in non-cash working capital items (458,842) -
relating to discontinued operations
Cash flow from investing activities
Investment in associate - (10,000,000)
Short-term investments (2,648) 1,500,022
---------------------------------------------------- ---------------------
(2,648) (8,499,978)
---------------------------------------------------- ---------------------- ---------------------
Cash flow from investing activities - discontinued 2,047,322 -
operations
Cash flow from financing activities
Proceeds from private placements, net 35,666,089 -
Issuance of shares - 4,793,789
Exercise of stock options - 71,388
35,666,089 4,865,177
---------------------------------------------------- ---------------------- ---------------------
Increase (decrease) in cash and cash equivalents 11,559,353 (6,619,206)
Foreign exchange differences (536,299) 46,000
Cash and cash equivalents, beginning of period 3,438,834 11,807,309
---------------------------------------------------- ---------------------- ---------------------
Cash and cash equivalents, end of period 14,461,888 5,234,103
---------------------------------------------------- ---------------------- ---------------------
Supplementary disclosure of cash flow information:
Significant non-cash transactions
Issuance of shares in respect of farm out 8,500,000 -
agreement
---------------------------------------------------- ---------------------- ---------------------
8,500,000 -
---------------------------------------------------- ---------------------- ---------------------
Notes to the Financial Statements
Basis of Preparation
The Condensed Interim 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.
**S**
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, Head of Corporate Sustainability +44(0)781 729 5070
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
Echelon Capital (Financial Adviser N.
America Markets)
Ryan Mooney +1 (403) 606 4852
Simon Akit +1 (416) 8497776
Celicourt (PR) +44 (0) 20 8434 2754
Mark Antelme
Jimmy Lea
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 as it forms part of
United Kingdom domestic law by virtue of the European Union
(Withdrawal) Act 2018 (as amended).
Notes to editors:
About Eco Atlantic:
Eco Atlantic is a TSX-V and AIM-quoted Atlantic Margin-focused
oil & 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
holds a 15% Working Interest in the 1,800 km(2) Orinduik Block
Operated by Tullow Oil. 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
km(2) in the Walvis Basin.
Offshore South Africa, Eco is Operator and holds a 50% working
interest in Block 2B and a 26.25% Working Interest in Block 3B/4B
operated by Africa Oil Corp., totalling some 20,643km (2) .
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.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
QRTBCGDDRGDDGXL
(END) Dow Jones Newswires
February 27, 2023 02:00 ET (07:00 GMT)
Eco (atlantic) Oil & Gas (LSE:ECO)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Eco (atlantic) Oil & Gas (LSE:ECO)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
