TIDMECO
RNS Number : 1964V
Eco (Atlantic) Oil and Gas Ltd.
30 November 2023
30 November 2023
ECO (ATLANTIC) OIL & GAS LTD.
("Eco," "Eco Atlantic," "Company," or together with its
subsidiaries, the "Group")
Unaudited Results for the three and six month periods ended 30
September 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
and six month periods ended 30 September 2023.
Highlights:
Financials (as at 30 September 2023)
-- The Company had cash and cash equivalents of US$3.85 million and no debt.
-- The Company had total assets of US$51.0 million, total
liabilities of US$1.71 million and total equity of US$49.30
million.
Operations:
Guyana
-- 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 (the
"Transaction") .
Post-period end:
-- On 15 November 2023, Eco announced that the Company had
received Government approval for the transfer of 60% Working
Interest and Operatorship in the offshore Orinduik Block in Guyana
from the Minister of Natural Resources, Cooperative Republic of
Guyana.
-- On 21 November 2023, the Company announced completion of the
Transaction, upon which Eco became the designated Operator of the
Orinduik Block and increase its aggregate Participating Interest to
75%, held via Eco Orinduik B.V. (60%) and Eco (Atlantic) Guyana Inc
(15%). TOQAP Guyana B.V continues to hold a Participating Interest
of 25%.
-- A formal farm-out process for the Orinduik Block has
commenced and the Company expects to provide further updates in due
course.
South Africa
Block 3B/4B
-- O n 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.
-- Government of SA approval and therefore the $2.5m cash
payment from Africa Oil are expected to be received by year end
2023.
-- The JV partners continue to progress a farm-out, in
conjunction with preparations for a two well drilling campaign on
the Block. Further updates will be made as appropriate.
Block 2B
-- Eco has applied for a Production Right Application to the
Petroleum Agency of South Africa, for Block 2B, and continues to
assess opportunities available to deliver value from this licence
for the benefit of stakeholders.
Namibia
-- Following media reports that significant multi-well drilling
campaigns are about to be undertaken offshore Namibia, 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.
Board Changes:
-- Post period end, on October 9, 2023, the Company announced
the appointment of Miss Alice Carroll and Miss Selma Usiku as
executive and non-executive directors respectively of the Company
with immediate effect, with Helmut Angula retiring from the
Board.
Gil Holzman, President and Chief Executive Officer of Eco
Atlantic, commented:
"We have made progress on all fronts across our exploration
portfolio in 2023. The most notable development was the acquisition
of a 60% Working Interest in the Orinduik Block, offshore Guyana,
from a subsidiary of Tullow Oil Plc. This transaction made Eco the
Operator of the licence and brings our total stake in the Block to
75%. We have already commenced with a farm-out process and opened a
data room, receiving early interest from a number of multi-national
oil and gas companies.
"Also, offshore South Africa, we continue to progress plans for
a two-well campaign on Block 3B/4B in parallel to continuing
farm-out discussions with various large industry partners. In
Namibia, we continue to receive incoming interest with regard to
our highly strategic acreage position, which has increased
following recent media reports of multi-well drilling campaigns
being lined up.
"In closing, the last two quarters of 2023 have been a highly
active period for us, and we look forward to sharing further
updates on the ongoing farm out workstreams and drilling plans with
our stakeholders as and when we are in a position to do so."
The Company's unaudited financial results and Management's
Discussion and Analysis for the three and six months ended 30
September 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
September 30, March 31,
------------------------------------------------
2023 2023
------------------------------------------------ ------------------------- ------------------
Assets
Current Assets
Cash and cash equivalents 3,850,448 4,110,734
Short-term investments 13,107 13,107
Government receivable 30,550 22,494
Amounts owing by license partners,
net - 477,578
Accounts receivable and prepaid
expenses 164,142 1,529,451
------------------------------------------------ ------------------------- ------------------
Total Current Assets 4,058,247 6,153,364
------------------------------------------------ ------------------------- ------------------
Non- Current Assets
Investment in associate 8,279,820 8,612,267
Petroleum and natural gas licenses 38,668,895 40,852,020
------------------------------------------------ ------------------------- ------------------
Total Non-Current Assets 46,948,715 49,464,287
------------------------------------------------ ------------------------- ------------------
Total Assets 51,006,962 55,617,651
------------------------------------------------ ------------------------- ------------------
Liabilities
Current Liabilities
Accounts payable and accrued liabilities 1,410,571 4,416,789
Advances from and amounts owing
to license partners, net 298,775 286,553
Warrant liability - 261,720
------------------------------------------------
Total Current Liabilities 1,709,346 4,965,062
Total Liabilities 1,709,346 4,965,062
------------------------------------------------ ------------------------- ------------------
Equity
Share capital 122,088,498 121,570,983
Restricted Share Units reserve 920,653 920,653
Warrants 14,778,272 14,778,272
Stock options 2,900,501 2,804,806
Foreign currency translation reserve (1,744,484) (1,458,709)
Accumulated deficit (89,645,824) (87,963,416)
------------------------------------------------ ------------------------- ------------------
Total Equity 49,297,616 50,652,589
------------------------------------------------ ------------------------- ------------------
Total Liabilities and Equity 51,006,962 55,617,651
------------------------------------------------ ------------------------- ------------------
Income Statement
Three months ended Six months ended
September 30, September 30,
-------------------------------------------------- -------------------------------------------------------
2023 2022 2023 2022
------------------------ ------------------------ --------------------------- --------------------------
Revenue
Interest income 21 36,325 1,686 56,452
------------------------ ------------------------ --------------------------- --------------------------
21 36,325 1,686 56,452
Operating expenses
:
Compensation
costs 236,556 210,605 420,998 479,914
Professional
fees 202,557 240,894 298,560 460,579
Operating
costs,
net 411,201 11,097,960 761,381 13,041,411
General and
administrative
costs 160,569 350,864 273,042 608,154
Share-based
compensation (15,817) 750,667 95,695 1,751,886
Foreign
exchange
loss 139,795 690,794 99,745 975,221
------------------------ ------------------------ --------------------------- --------------------------
Total operating
expenses 1,134,861 13,341,784 1,949,421 17,317,165
------------------------ ------------------------ --------------------------- --------------------------
Operating loss (1,134,840) (13,305,459) (1,947,735) (17,260,713)
Gain on
settlement
of liability (200,640) - (200,640) -
Fair value
change
in warrant
liability - 415,712 261,720 1,846,696
Share of losses
of company
accounted
for at equity (166,223) (92,302) (332,447) (184,605)
------------------------ ------------------------ --------------------------- --------------------------
Net loss for the
period from continuing
operations, before
taxes (1,501,703) (12,982,049) (2,219,102) (15,598,622)
Tax recovery 536,694 - 536,694 -
------------------------ ------------------------ --------------------------- --------------------------
Net loss for the
period from continuing
operations. After
taxes (965,009) (12,982,049) (1,682,408) (15,598,622)
Loss from discontinued
operations, after-tax - (800,210) - (898,323)
Net loss for the
period (965,009) (13,782,259) (1,682,408) (16,496,945)
Foreign
currency
translation
adjustment 9,901 (441,472) (285,775) (553,102)
Comprehensive
loss for the period (955,108) (14,223,731) (1,968,183) (17,050,047)
------------------------ ------------------------ --------------------------- --------------------------
Basic and diluted
net loss per share:
from continuing
operations (0.004) (0.038) (0.006) (0.049)
======================== ======================== =========================== ==========================
from discontinued
operations (0.000) (0.002) (0.000) (0.003)
======================== ======================== =========================== ==========================
Weighted average
number of ordinary
shares used in
computing basic
and diluted net
loss per share 369,421,234 343,966,022 368,390,620 319,575,745
======================== ======================== =========================== ==========================
Cash Flow Statement
Six months ended
September 30,
----------------------------------------------
2023 2022
-------------------- ------------------------
Cash flow from operating
activities - continued operations
Net loss from continuing
operations (1,682,408) (15,598,622)
Items not affecting cash:
Share-based compensation 95,695 1,751,886
Revaluation of warrant liability (261,720) (1,846,696)
Share of losses of companies
accounted for at equity 332,447 184,605
Changes in non--cash working
capital:
Government receivable (8,056) (5,169)
Accounts payable and accrued
liabilities (2,805,578) 1,601,059
Accounts receivable and
prepaid expenses 1,365,309 (948,297)
Reallocation to discontinued
operations cashflows - 419,113
Advance from and amounts
owing to license partners 489,800 1,486,236
------------------------------------ -------------------- ------------------------
Cash flow from operating
activities - continued operations (2,474,511) (12,955,885)
------------------------------------ -------------------- ------------------------
Cash flow from operating
activities - discontinued
operations - (1,069,617)
Cash flow from investing
activities
Proceeds from Block 3B/4B 2,500,000 -
farmout
------------------------------------ -------------------- ------------------------
Cash flow from investing 2,500,000 -
activities - continued operations
------------------------------------ -------------------- ------------------------
Cash flow from financing
activities
Proceeds from private placements,
net - 35,662,446
Exercise of stock options - 67,406
------------------------------------ --------------------
Cash flow from financing
activities - 35,729,852
------------------------------------ -------------------- ------------------------
Increase in cash and cash
equivalents 25,489 21,704,350
Foreign exchange differences (285,775) (553,102)
Cash and cash equivalents,
beginning of period 4,110,734 3,438,834
------------------------------------ -------------------- ------------------------
Cash and cash equivalents,
end of period 3,850,448 24,590,082
------------------------------------ -------------------- ------------------------
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.
**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, Executive Director +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
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
is Operator and holds a 75% Working Interest in the 1,800 km(2)
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 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
IR MZMFMVGZGFZG
(END) Dow Jones Newswires
November 30, 2023 02:00 ET (07:00 GMT)
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