TIDMECO
RNS Number : 8758H
Eco (Atlantic) Oil and Gas Ltd.
01 August 2023
1 August 2023
ECO (ATLANTIC) OIL & GAS LTD.
("Eco," "Eco Atlantic," "Company," or together with its
subsidiaries, the "Group")
Audited Results for the Year Ended 31 March 2023
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 audited results for
the year ended 31 March 2023.
Highlights:
Financials (as at 31 March 2023)
-- The Company had cash and cash equivalents of US$3,770,614 and no debt.
-- Eco has cash and cash equivalents of US$6.4 million on the balance sheet as at 31 July 2023.
-- The Company had total assets of US$53,777,531, total
liabilities of US$5.9 million and total equity of US$48
million.
Operations:
South Africa
Block 3B/4B
-- Post period end, the Company signed a legally binding Letter
of Intent with Africa Oil to farm out a 6.25% Participating
Interest in Block 3B/4B, offshore South Africa for up to US$10.5
million in cash.
-- In March 2023, Africa Oil released a New Competent Person's
Resource Report confirming that the Block contains an estimated P50
Prospective Resources of approximately four billion barrels of oil
equivalent ("BOE"), one Billion BOE net to Eco Atlantic prior to
the sale of the aforementioned Participating Interest which is
expected to complete shortly.
-- Eco, alongside its JV Partners, applied for Environmental
Authorisation to undertake exploration activities in Block 3B/4B in
the Orange Basin. An application was made to drill one well and one
contingent well with an area of interest in the north of the Block.
A comprehensive Environmental and Social Impact Assessment ("ESIA")
process commenced in March 2023, in preparation for drilling
activity on the Block.
-- The JV partners continue to progress plans to conduct a
two-well campaign on the Block in conjunction with progressing the
collaborative farm out process, up to 55% gross working interest,
with various potential parties.
Block 2B
-- On November 15, 2022, a Production Right Application to the
Petroleum Agency of South Africa, for Block 2B, based on the
existing oil discovery of AJ-1 and potential future operations was
submitted by the JV Partners.
-- Eco continues to believe that Block 2B contains considerable
hydrocarbon resources and looks forward to providing further
updates as the Company looks to deliver value from the licence for
all stakeholders.
Namibia
-- Following the significant drilling success in the area, Eco
continues to receive third party interest in its strategic acreage
position offshore Namibia.
-- The Company continues to assess farm out opportunities with
its four licences in the region as it considers options for
progressing exploration and commercial activity on its acreage.
Guyana
-- Eco Atlantic and its JV partners remain committed to further
drilling on the Orinduik Block and continue assessing opportunities
to drill at least two exploration wells into the light oil
cretaceous targets as soon as practical. Further updates will be
made on the matter in due course.
Gil Holzman, President and Chief Executive Officer of Eco
Atlantic, commented:
"As a business we continue to make significant strides across
our strategic portfolio of hydrocarbon assets, in some of the
world's most prolific exploration areas. Following the stabilizing
of commodity prices during the first half of this year, alongside a
number of discoveries being made in and around the regions we
operate in, we continue to see strong industry interest in our
unique acreage positions in Orange Basin SA, Walvis Basin Namibia,
and the Guyana Suriname Basin.
"The agreed transfer of a portion of our WI on Block 3B/4B to
our strategic alliance partner Africa Oil will strengthen the JV
position amid our continued negotiations with third parties to farm
into the Block and execute a drilling campaign targeted for 2024.
The proceeds from this agreement give us the opportunity to fund
other growth opportunities elsewhere in the portfolio with no
shareholder dilution. Also, at 3B/4B, we applied for Environmental
Authorisation to undertake further drilling exploration activities
as we believe that the licence holds significant potential to be
explored by the Joint Venture partnership in South Africa.
"Namibia continues to produce globally significant hydrocarbon
discoveries, and as a sizeable licence holder in the region, Eco
continues to benefit from heightened levels of industry interest in
the area.
"As a Board and Management team, we continue to assess and
progress value accretive opportunities across our portfolio, with
the goal of delivering substantial shareholder returns over the
medium to long term.
"We remain excited about our prospects, and I look forward to
providing further updates to the markets during the remainder of
the year."
Issue of Azinam Shares, Admission and Total Voting Rights
In addition, further to the Company's announcement of 29
November 2022 regarding the closing of the acquisition of Azinam
Group Limited ("Azinam") and in accordance with the previously
announced Share Purchase Agreement, the Company has received TSX
Venture Exchange approval to issue the balance of 1,625,000 Common
Shares ("Azinam Shares") to the previous shareholders of Azinam
representing the full and final number of Common Shares to be
issued in respect of this transaction.
Application has been made for admission of the 1,625,000 Azinam
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 in the Azinam Shares will commence,
on or around 8:00 a.m. on 2 August 2023.
On Admission, the enlarged issued share capital of the Company
will be 370,173,680 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 audited financial statement for the year ended 31
March 2023 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,
------------------------------------
2023 2022
------------------------------------ ------------------------- ---------------------
Assets
Current Assets
Cash and cash equivalents 4,110,734 3,438,834
Short-term investments 13,107 52,618
Government receivable 22,494 27,487
Amounts owing by license 477,578 -
partners, net
Accounts receivable
and prepaid expenses 1,529,451 257,911
Assets held for sale - 2,061,734
------------------------------------ ------------------------- ---------------------
Total Current Assets 6,153,364 5,838,584
------------------------------------ ------------------------- ---------------------
Non- Current Assets
Investment in associate 8,612,267 9,277,162
Petroleum and natural
gas licenses 40,852,020 30,753,034
------------------------------------ ------------------------- ---------------------
Total Non-Current Assets 49,464,287 40,030,196
------------------------------------ ------------------------- ---------------------
Total Assets 55,617,651 45,868,780
------------------------------------ ------------------------- ---------------------
Liabilities
Current Liabilities
Accounts payable and
accrued liabilities 4,416,789 1,931,823
Advances from and amounts 286,553 -
owing to license partners,
net
Current liabilities
related to assets held
for sale - 473,254
Warrant liability 261,720 3,241,762
------------------------------------
Total Current Liabilities 4,965,062 5,646,839
Total Liabilities 4,965,062 5,646,839
------------------------------------ ------------------------- ---------------------
Equity
Share capital 121,570,983 63,141,609
Shares to be issued - 20,766,996
Restricted Share Units
reserve 920,653 267,669
Warrants 14,778,272 7,806,000
Stock options 2,804,806 958,056
Foreign currency translation
reserve (1,458,709) (1,309,727)
Accumulated deficit (87,963,416) (51,408,662)
------------------------------------ ------------------------- ---------------------
Total Equity 50,652,589 40,221,941
------------------------------------ ------------------------- ---------------------
Total Liabilities and
Equity 55,617,651 45,868,780
------------------------------------ ------------------------- ---------------------
Income Statement
Year ended
March 31,
-----------------------------------------------------
2023 2022
-------------------------- -------------------------
Revenue
Interest income 66,571 3,556
-------------------------- -------------------------
66,571 3,556
Operating expenses :
Compensation costs 905,974 852,383
Professional fees 694,304 551,751
Operating costs, net 33,039,264 1,932,826
General and administrative
costs 848,893 603,145
Share-based compensation 2,968,294 14,495
Foreign exchange loss (gain) 559,947 (116,631)
-------------------------- -------------------------
Total operating expenses 39,016,676 3,837,969
-------------------------- -------------------------
Operating loss (38,950,105) (3,834,413)
Fair value change in warrant
liability 2,980,042 (263,136)
Share of losses of company
accounted for at equity (664,895) (1,154,838)
-------------------------- -------------------------
Net loss for the year from
continuing operations (36,634,958) (5,252,387)
Gain (loss) from discontinued
operations, after-tax 80,204 (1,304,937)
Net loss for the year (36,554,754) (6,557,324)
Foreign currency translation
adjustment (148,982) (111,630)
Comprehensive loss for the
year (36,703,736) (6,668,954)
-------------------------- -------------------------
Basic and diluted net loss
per share:
from continuing operations (0.105) (0.027)
========================== =========================
from discontinued operations 0.000 (0.007)
========================== =========================
Weighted average number of
ordinary shares used in computing
basic and diluted net loss
per share 349,622,239 195,869,114
========================== =========================
Cash Flow Statement
Year ended
March 31,
----------------------------------------------
2023 2022
-------------------- ------------------------
Cash flow from operating
activities - continued operations
Net loss from continuing
operations (36,634,958) (5,252,387)
Items not affecting cash:
Share-based compensation 2,968,295 14,495
Revaluation of warrant
liability (2,980,042) 263,136
Share of losses of companies
accounted for at equity 664,895 1,154,838
Changes in non--cash working
capital:
Government receivable 4,993 (4,790)
Accounts payable and accrued
liabilities 2,484,966 (7,279)
Accounts receivable and
prepaid expenses (1,271,540) 530,121
Reallocation to discontinued
operations cashflows - (317,340)
Advance from and amounts (191,025) -
owing to license partners
------------------------------------ -------------------- ------------------------
(34,954,416) (3,619,206)
------------------------------------ -------------------- ------------------------
Cash flow from operating
activities - discontinued
operations (839,029) (1,008,182)
Cash flow from investing
activities
Investment in associate - (10,000,000)
Short-term investments 39,511 1,500,022
Acquisition of interest (1,598,986) -
in property
------------------------------------ --------------------
(1,559,475) (8,499,978)
------------------------------------ -------------------- ------------------------
Cash flow from investing 2,507,713 -
activities - discontinued
operations
Cash flow from financing
activities
Proceeds from private placements,
net 35,666,089 4,793,814
Acquisition of Azinam - 2,590
Exercise of stock options - 74,212
35,666,089 4,870,616
------------------------------------ -------------------- ------------------------
Increase (decrease) in
cash and cash equivalents 820,882 (8,256,750)
Foreign exchange differences (148,982) (111,725)
Cash and cash equivalents,
beginning of year 3,438,834 11,807,309
------------------------------------ -------------------- ------------------------
Cash and cash equivalents,
end of year 4,110,734 3,438,834
------------------------------------ -------------------- ------------------------
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 Limited (Financial &
Nominated Adviser) +44 (0) 20 7409 3494
James Harris
James Bellman
Berenberg (Broker) +44 (0) 20 3207 7800
M atthew 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 7770 6424
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 km2 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
km2 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 20,643km2.
Cautionary Notes:
This news release contains certain "forward-looking statements",
including, without limitation, statements containing the words
"will", "may", "expects", "intends", "anticipates" and other
similar expressions which constitute "forward-looking information"
within the meaning of applicable securities laws. Forward-looking
statements reflect the Company's current expectations, assumptions,
and beliefs, and are subject to a number of risks and uncertainties
that could cause actual results to differ materially from those
anticipated. These forward-looking statements are qualified in
their entirety by the inherent risks and uncertainties surrounding
future expectations.
Important factors that could cause actual results to differ
materially from expectations include, but are not limited to,
general economic and market factors, competition, the effect of the
global pandemic and consequent economic disruption, and the factors
detailed in the Company's ongoing filings with the securities
regulatory authorities, available at www.sedar.com . Although
forward-looking statements contained herein are based on what
management considers to be reasonable assumptions based on
currently available information, there can be no assurance that
actual events, performance or results will be consistent with these
forward-looking statements, and our assumptions may prove to be
incorrect. Readers are cautioned not to place undue reliance on
these forward-looking statements. The Company undertakes no
obligation to publicly update or revise any forward-looking
statements either as a result of new information, future events or
otherwise, except as required by applicable laws.
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END
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