REG - Eco (Atlantic) O&G - Audited Results for the Year Ended 31 March 2024
30/07/2024 07:00
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RNS Number : 3575Y Eco (Atlantic) Oil and Gas Ltd. 30 July 2024
30 July 2024
ECO (ATLANTIC) OIL & GAS LTD.
("Eco," "Eco Atlantic," "Company," or together with its subsidiaries, the
"Group")
Audited Results for the Year Ended 31 March 2024
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 2024.
Highlights:
Financials (as at 31 March 2024)
· The Company had cash and cash equivalents of US$2.97 million and no
debt as at 31 March 2024.
o Following a significant reduction in costs (including G&A,
professional fees and operating expenses) as of the time of publication, Eco
has a cash position of ca.US$1.5 million.
· The Company had total assets of US$31.3 million, total liabilities of
US$1.25 million and total equity of US$30.0 million as at 31 March 2024.
Post-period end
· Following the successful farm-out deal of Block 3B/4B, Eco expects to
receive a first tranche of US$8.3 million during August 2024, subject to
customary closing conditions being met. The resultant proceeds are expected to
give Eco a cash and cash equivalents position of c.US$10 million, with no
near-term capital commitments for operational expenses.
Operations:
South Africa
Block 1 (post-period end)
· In June 2024, Eco announced a Farm-In into Block 1 Offshore South
Africa Orange Basin. The Company will acquire a 75% Working Interest ("WI")
from Tosaco Energy (Proprietary) Limited ("Tosaco") and will become Operator
of a new Exploration Right.
· Block 1 has significant 2D and 3D seismic data already completed and
no additional seismic acquisition or drilling of wells is committed in the
three-year carried period. Eco intends to complete the interpretation and
analysis required for its planned Work Program with its in-house exploration
team. The Farm-in is subject, inter alia, to normal Governmental approvals and
no field activity is currently planned that requires environmental permitting.
Block 3B/4B
· In March 2024, Eco and its JV partners signed a farm-out transaction
with TotalEnergies EP South Africa B.V., who will become Operator
("TotalEnergies") and QatarEnergy International E&P LLC ("QatarEnergy").
Under the agreement, Eco would retain a 13.75% Participating Interest in Block
3B/4B, offshore the Republic of South Africa.
Post-period end
· On July 29, 2024, the Company announced the signing of an agreement
to sell a 1% interest in Block 3B/4B in exchange for cancellation of all of
Africa Oil's shares and warrants in Eco (worth C$ 11.5m). Upon Completion of
the transaction, Eco will hold a fully carried 5.25% interest in Block 3B/4B
Offshore South Africa, reducing from the current 6.25%.
· Upon closing, which is expected to occur in August 2024, Total will
assume operatorship and will lead the drilling planning and preparations.
Block 2B (post-period end)
· In June 2024, the Company relinquished its 50% WI Operated offshore
Block 2B where it drilled its 2022 Gazania-1 well offsetting the AJ-1 oil
discovery. The Company has completed all necessary documentation, and
environmental audits, and has informed the Petroleum Agency of South Africa
("PASA"), the regulator for the Government of South Africa.
Namibia
· A multi-block farmout process remains underway for all or part of
Eco's four offshore Petroleum Exploration Licences ("PEL"): 97, 98, 99, and
100. Eco holds Operatorship and an 85% Working Interest in each PEL
representing a combined area of 28,593 km(2) in the Walvis Basin.
Post-period end
· Eco added ~1,383km 2D data licensed on PEL100 (Tamar block) to its
database, which is being technically evaluated and interpreted by the team to
define additional seismic acquisition areas within the Block, along with new
leads and prospects.
Guyana
· An active farmout process continues for the offshore Orinduik Block.
Eco was encouraged to note the recent news from neighbouring Stabroek block,
where the Operator ExxonMobil is planning for a seventh development at
Hammerhead.
Investor Meet Company
· Gil Holzman, President and Chief Executive Officer will provide an
Annual Results Investor Update via Investor Meet Company today at 14:00 BST.
The presentation is open to all existing and potential shareholders and
questions can be asked at any time during the live presentation. More
information about the presentation can be found in the Company's announcement
of 24 July 2024.
Gil Holzman, President and Chief Executive Officer of Eco Atlantic,
commented:
"We made considerable progress across our asset portfolio during the financial
year to 31 March 2024. This has been achieved at a time when we have had a
strict focus on costs, which has seen the Company operate with non dilutive
financings for the last two years, and agree a farm-out on Block 3B/4B which
will significantly increase our cash resources, and leaves tremendous upside
potential on the table in the event a discovery is drilled on the block.
"In Namibia and Guyana, we have active farm-out processes underway, and we are
very upbeat about the number and calibre of the companies we have had in our
data rooms. Both jurisdictions remain at the forefront of global hydrocarbon
exploration and we are confident of delivering a positive update on both in
due course.
"We were also pleased to announce the deal with Africa Oil yesterday, which
saw us agree the sale of a 1% interest in the Block in exchange for the
cancellation of all of AOI's shares and warrants in Eco, worth C$11.5 million.
We are grateful to Africa Oil for their support since 2017, and this agreement
will enable us to eliminate a c.16% overhang in Eco's shares, which are locked
up until the transaction closes and the shares and warrants are cancelled. I
would also add that the deal was agreed using an US$840 million valuation for
Block 3B/4B, which values Eco's 5.25% holding at ca.US$44 million.
"As ever, we continue to work hard to deliver value for all of our
stakeholders and we look forward to providing further market updates in due
course."
The Company's audited financial statement for the year ended 31 March 2024 is
available for download on the Company's website at www.ecooilandgas.com
(http://www.ecooilandgas.com) and on Sedar at www.sedar.com
(http://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,
2024 2023
Assets
Current Assets
Cash and cash equivalents 2,967,005 4,110,734
Short-term investments 13,107 13,107
Government receivable 26,970 22,494
Amounts owing by license partners 49,578 477,578
Accounts receivable and prepaid expenses 38,539 1,529,451
Total Current Assets 3,095,199 6,153,364
Non- Current Assets
Investment in associate - 8,612,267
Petroleum and natural gas licenses 28,168,439 40,852,020
Total Non-Current Assets 28,168,439 49,464,287
Total Assets 31,263,638 55,617,651
Liabilities
Current Liabilities
Accounts payable and accrued liabilities 1,163,546 4,416,789
Advances from and amounts owing to license partners 81,952 286,553
Warrant liability - 261,720
Total Current Liabilities 1,245,498 4,965,062
Total Liabilities 1,245,498 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 (1,568,469) (1,458,709)
Accumulated deficit (109,101,315) (87,963,416)
Total Equity 30,018,140 50,652,589
Total Liabilities and Equity 31,263,638 55,617,651
Income Statement
Year ended
March 31,
2024 2023
Revenue
Interest income 1,708 66,571
1,708 66,571
Operating expenses:
Compensation costs 851,068 905,974
Professional fees 589,810 694,304
Operating costs, net 2,662,347 33,039,264
General and administrative costs 658,443 848,893
Share-based compensation 95,695 2,968,294
Foreign exchange loss (gain) (14,354) 559,947
Total operating expenses 4,843,009 39,016,676
Operating loss (4,841,301) (38,950,105)
Other Non-Operating Charges and Write-downs
Gain on settlement of liability 299,360 -
Fair value change in warrant liability 261,720 2,980,042
Share of losses of associate - (664,895)
Write down of investment in associate (8,612,267) -
Write down of license (8,782,105) -
Net loss for the year from continuing operations, before taxes (21,674,593) (36,634,958)
Tax recovery 536,694 -
Net loss for the year from continuing operations, after taxes (21,137,899) (36,634,958)
Gain from discontinued operations, after-tax - 80,204
Net loss for the year (21,137,899) (36,554,754)
Foreign currency translation adjustment (109,760) (148,982)
Comprehensive loss for the year (21,247,659) (36,703,736)
Basic and diluted net loss per share:
From continuing operations (0.06) (0.10)
From discontinued operations - -
Weighted average number of ordinary shares used in computing basic and diluted 369,287,447 349,622,239
net loss per share
Cash Flow Statement
Year ended
March 31,
2024 2023
Cash flow from operating activities - continued operations
Net loss from continuing operations (21,137,899) (36,634,958)
Items not affecting cash:
Share-based compensation 95,695 2,968,295
Fair value change in warrant liability (261,720) (2,980,042)
Share of losses of companies accounted for at equity - 664,895
Write down of equity investment 8,612,267 -
Write down of license 8,782,105 -
Changes in non‑cash working capital:
Government receivable (4,476) 4,993
Accounts payable and accrued liabilities (3,134,252) 2,484,966
Accounts receivable and prepaid expenses 1,490,912 (1,271,540)
Advance from and amounts owing to license partners 223,399 (191,025)
Cash flow from operating activities - continued operations (5,333,969) (34,954,416)
Cash flow from operating activities - discontinued operations - (839,029)
Cash flow from investing activities
Short-term investments - 39,511
Acquisition of interest in property (1,598,986)
Acquisition of Orinduik BV (700,000) -
Proceeds from Block 3B/4B farm-out 5,000,000 -
Cash flow from investing activities - continued operations 4,300,000 (1,559,475)
Cash flow from investing activities - discontinued operations - 2,507,713
Cash flow from financing activities
Proceeds from private placements, net - 35,666,089
Cash flow from financing activities - 35,666,089
Increase (decrease) in cash and cash equivalents (1,033,969) 820,882
Foreign exchange differences (109,760) (148,982)
Cash and cash equivalents, beginning of year 4,110,734 3,438,834
Cash and cash equivalents, end of year 2,967,005 4,110,734
**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
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 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 km(2) in the Walvis Basin. Offshore South Africa, Eco holds a 20%
Working Interest in Block 3B/4B and pending government approval a 75% Operated
Interest in Block 1, in the Orange Basin, totalling some 37,510km(2).
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