TIDMECO
RNS Number : 7232K
Eco (Atlantic) Oil and Gas Ltd.
30 August 2023
30 August 2023
ECO (ATLANTIC) OIL & GAS LTD.
("Eco," "Eco Atlantic," "Company," or together with its
subsidiaries, the "Group")
Unaudited Results for the three months ended 30 June 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 results for the three
months ended 30 June 2023.
Highlights:
Financials (as at 30 June 2023)
-- The Company had cash and cash equivalents of US$2.4 million and no debt.
-- Eco has cash and cash equivalents of US$4.7 million as at 30 August 2023.
-- The Company had total assets of US$53.31 million, total
liabilities of US$3.56 million and total equity of US$49.75
million.
Operations:
Guyana
-- Post Period end, on 10 August 2023, the Company signed a Sale
Purchase Agreement for its wholly owned subsidiary, Eco Guyana Oil
and Gas (Barbados) Limited to acquire a 60% Operated Interest in
Orinduik Block, offshore Guyana, through the acquisition of Tullow
Guyana B.V. , a wholly owned subsidiary of Tullow Oil Plc. in
exchange for a combination of upfront cash and contingent
consideration .
-- Eco, via its wholly owned subsidiary Eco (Atlantic) Guyana
Inc, currently holds a 15% working interest in the Orinduik Block.
On completion of the Transaction, which is subject to certain
market-standard conditions precedent, including customary
Government and JV partner approvals, Eco, as operator and majority
interest holder in the Orinduik Block, intends to drive the
exploration process and focus on its strategy to attract new
partners to join the license and proactively engage in
drilling.
South Africa
Block 3B/4B
-- Post period end, on 17 July 2023, the Company issued
1,200,000 shares to the Lunn Family Trust in place of the
US$500,000 cash consideration due in respect of the acquisition of
the 6.25% interest in Block3B/4B from the Lunn Family Trust as
previously announced on 27 June 2022.
-- On 11 July 2023, 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. On 14 August 2023, the parties signed the final
Assignment and Transfer agreement. Additional US$2.5m cash
consideration is expected to be received upon Government of SA
approval of the transfer, with the initial consideration of US$2.5m
already having been received.
-- 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.
-- 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 15 November 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.
Gil Holzman, President and Chief Executive Officer of Eco
Atlantic, commented:
"O ur Q1 results serve as an important opportunity to remind
investors of the strategic work which is happening across all areas
of the portfolio. Recently announced deals in both South Africa and
Guyana are examples of the team's efforts to position the portfolio
to continue c reating high-impact catalysts for investors. I am
excited for the future and look forward to progressing our work
programmes across our entire Atlantic Margin portfolio.
The Company's unaudited financial results and Management's
Discussion and Analysis for the three months ended 30 June 2023 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
June 30, March 31,
---------------------------------
2023 2023
--------------------------------- ------------------------- ------------------
Assets
Current Assets
Cash and cash equivalents 2,445,863 4,110,734
Short-term investments 13,107 13,107
Government receivable 25,971 22,494
Amounts owing by license
partners, net - 477,578
Accounts receivable and prepaid
expenses 1,530,734 1,529,451
--------------------------------- ------------------------- ------------------
Total Current Assets 4,015,675 6,153,364
--------------------------------- ------------------------- ------------------
Non- Current Assets
Investment in associate 8,446,043 8,612,267
Petroleum and natural gas
licenses 40,852,020 40,852,020
--------------------------------- ------------------------- ------------------
Total Non-Current Assets 49,298,063 49,464,287
--------------------------------- ------------------------- ------------------
Total Assets 53,313,738 55,617,651
--------------------------------- ------------------------- ------------------
Liabilities
Current Liabilities
Accounts payable and accrued
liabilities 3,371,460 4,416,789
Advances from and amounts
owing to license partners,
net 191,252 286,553
Warrant liability - 261,720
---------------------------------
Total Current Liabilities 3,562,712 4,965,062
Total Liabilities 3,562,712 4,965,062
--------------------------------- ------------------------- ------------------
Equity
Share capital 121,570,983 121,570,983
Restricted Share Units reserve 920,653 920,653
Warrants 14,778,272 14,778,272
Stock options 2,916,318 2,804,806
Foreign currency translation
reserve (1,754,385) (1,458,709)
Accumulated deficit (88,680,815) (87,963,416)
--------------------------------- ------------------------- ------------------
Total Equity 49,751,026 50,652,589
--------------------------------- ------------------------- ------------------
Total Liabilities and Equity 53,313,738 55,617,651
--------------------------------- ------------------------- ------------------
Income Statement
Three months ended
June 30,
------------------------------------------------------
2023 2022
--------------------------- -------------------------
Revenue
Interest income 1,665 20,127
--------------------------- -------------------------
1,665 20,127
Operating expenses :
Compensation costs 184,442 269,309
Professional fees 96,003 219,685
Operating costs, net 350,180 1,943,451
General and administrative
costs 112,473 257,290
Share-based compensation 111,512 1,001,219
Foreign exchange loss (gain) (40,050) 284,427
--------------------------- -------------------------
Total operating expenses 814,560 3,975,381
--------------------------- -------------------------
Operating loss (812,895) (3,955,254)
Fair value change in warrant
liability 261,720 1,430,984
Share of losses of company
accounted for at equity (166,224) (92,303)
--------------------------- -------------------------
Net loss for the period
from continuing operations (717,399) (2,616,573)
Loss from discontinued operations,
after-tax - (98,113)
Net loss for the period (717,399) (2,714,686)
Foreign currency translation
adjustment (295,676) (111,630)
Comprehensive loss for the
period (1,013,075) (2,826,316)
--------------------------- -------------------------
Basic and diluted net loss
per share:
from continuing operations (0.002) (0.009)
=========================== =========================
from discontinued operations (0.000) (0.000)
=========================== =========================
Weighted average number of
ordinary shares used in computing
basic and diluted net loss
per share 367,348,680 293,654,835
=========================== =========================
Cash Flow Statement
Three months ended
June 30,
--------------------------------------------
2023 2022
-------------------- ----------------------
Cash flow from operating activities
- continued operations
Net loss from continuing operations $ (717,399) $ (2,616,573)
Items not affecting cash:
Share-based compensation 111,512 1,001,219
Revaluation of warrant liability (261,720) (1,430,984)
Share of losses of companies
accounted for at equity 166,224 92,303
Changes in non--cash working
capital:
Government receivable (3,477) (25,774)
Accounts payable and accrued
liabilities (1,045,329) 1,681,064
Accounts receivable and prepaid
expenses (1,283) 28,162
Reallocation to discontinued
operations cashflows - (171,294)
Advance from and amounts owing
to license partners 382,277 1,175,612
-------------------------------------- -------------------- ----------------------
Cash flow from operating activities
- continued operations (1,369,195) (266,265)
-------------------------------------- -------------------- ----------------------
Cash flow from operating activities
- discontinued operations - 104,919
Cash flow from financing activities
Proceeds from private placements,
net - 35,587,837
--------------------------------------
Cash flow from financing activities - 35,587,837
-------------------------------------- -------------------- ----------------------
Increase (decrease) in cash
and cash equivalents (1,369,195) 35,426,491
Foreign exchange differences (295,676) (111,630)
Cash and cash equivalents, beginning
of period 4,110,734 3,438,834
-------------------------------------- -------------------- ----------------------
Cash and cash equivalents, end
of period $ 2,445,863 $ 38,753,695
-------------------------------------- -------------------- ----------------------
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, 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
QRTKKLFLXVLEBBQ
(END) Dow Jones Newswires
August 30, 2023 02:00 ET (06:00 GMT)
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