REG - Eco (Atlantic) O&G - Results for three & nine months ended 31 Dec 2024
27/02/2025 07:15
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RNS Number : 6877Y Eco (Atlantic) Oil and Gas Ltd. 27 February 2025
27 February 2025
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 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 results for the three and nine months ended 31 December 2024.
Highlights:
Financials
· The Company had cash and cash equivalents of US$6.03 million and no
debt as at 31 December 2024.
· The Company had total assets of US$27.18 million, total liabilities
of ~US$82 thousand and total equity of US$26.35 million as at 31 December
2024.
Operations:
South Africa
Block 1
· Eco announced the acquisition of Block 1, Offshore South Africa
Orange Basin, in June 2024. Through its 100% owned subsidiary Azinam South
Africa Limited ("Azinam South Africa"), the Company will farm-in and acquire
a 75% Working Interest from OrangeBasin Oil and Gas (Proprietary) Limited and
will become Operator of a new Exploration Right (the "Block 1 Acquisition").
Further updates on the plans for the licenses will be made once the final
requisite government approvals have been received.
Block 3B/4B
· In January 2025, Eco received approval from the Government of the
Republic of South Africa, under Section 11 of the Mineral and Petroleum
Resources Development Act, in relation to Eco's Assignment and Share
Cancellation Agreement between Azinam, Africa Oil and Africa Oil SA Corp
("AOSAC"). The conditions precedent to the Exchange Transaction, including
requisite regulatory approvals from the Government of the Republic of South
Africa, TSX Venture Exchange, applicable Canadian Securities Commissions, and
the relevant approvals from the Block 3B/4B Joint Venture Partners, have been
satisfied and accordingly, Azinam has assigned the Assigned Interest to AOSAC
and in return Africa Oil has transferred the Eco Securities which have been
cancelled.
· Eco now holds a fully carried 5.25% interest in Block 3B/4B Offshore
South Africa, reduced from 6.25%. Following the cancellation of Africa Oil's
previously held in aggregate, 54,941,744 Common Shares (valued at c. $CAD11.50
million as at 29 July 2024) (the "Share Cancellation") and 4,864,865 Warrants
(collectively, the "Eco Securities"), the outstanding common share capital of
the Company is now reduced to 315,231,936 Common Shares and 48,541,666
warrants.
Namibia
· The previously announced multi-block farm out process for all or part
of Eco's four offshore Petroleum Exploration Licences ("PEL"): 97, 98, 99, and
100 is ongoing. Eco holds Operatorship and an 85% Working Interest in each
PEL representing a combined area of 28,593 km(2) in the Walvis Basin.
· Eco continues to receive considerable interest in its licences and is
currently assessing options to progress its exploration work programmes that
will include potential farm-out partners. The Company will provide further
updates as appropriate.
Guyana
· Eco continues its discussions with interested parties regarding the
farmout initiative for the offshore Orinduik Block. ExxonMobil operator of the
adjacent Stabroek block announced Hammerhead as its 7(th) development project
and the first one of heavy oil.
Gil Holzman, President and Chief Executive Officer of Eco Atlantic,
commented:
"We continue advancing Eco's promising exploration licenses in key hydrocarbon
regions. During the period, we completed our transaction with Africa Oil on
Block 3B/4B, securing significant exposure to a multi-billion-barrel prospect.
This deal also enabled us to cancel approximately CAD $11.5 million in shares
and welcome Emily Ferguson to our Board of Directors.
While the farmout processes are progressing, we are in advanced discussions on
potential deals in both Namibia and Guyana and look forward to updating the
market in due course. Meanwhile, offshore South Africa, we are excited about
the upcoming drilling campaign on Block 3B/4B with our JV partners and the
formal issuance of Block 1 in the Orange Basin.
With a strong balance sheet and an additional $11.5 million expected from the
3B/4B deal upon milestone completions, Eco is well-positioned for a dynamic
period of exploration and deal making."
The Company's unaudited financial results and Management's Discussion and
Analysis for the three and six months ended 31 December 2024 are available for
download on the Company's website at 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.
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,
2024 2024
Assets
Current Assets
Cash and cash equivalents 6,027,801 2,967,005
Short-term investments 75,000 13,107
Government receivable 35,644 26,970
Amounts owing by license partners 165,821 49,578
Accounts receivable and prepaid expenses - 38,539
Total Current Assets 6,304,266 3,095,199
Non- Current Assets
Petroleum and natural gas licenses 20,875,860 28,168,439
Total Non-Current Assets 20,875,860 28,168,439
Total Assets 27,180,126 31,263,638
Liabilities
Current Liabilities
Accounts payable and accrued liabilities 829,310 1,163,546
Advances from and amounts owing to license partners - 81,952
Total Current Liabilities 829,310 1,245,498
Total Liabilities 829,310 1,245,498
Equity
Share capital 122,088,498 122,088,498
Restricted Share Units reserve 920,653 920,653
Warrants 14,778,272 14,778,272
Stock options 2,900,501 2,900,501
Foreign currency translation reserve (1,563,110) (1,568,469)
Accumulated deficit (112,773,998) (109,101,315)
Total Equity 26,350,816 30,018,140
Total Liabilities and Equity 27,180,126 31,263,638
Income Statement
Three months ended Nine months ended
December 31, Dec
emb
er
31,
2024 2023 2024 2023
Revenue
Interest income 52,081 17 59,592 1,703
52,081 17 59,592 1,703
Operating expenses:
Compensation costs 255,939 208,201 727,251 629,199
Professional fees 64,689 89,877 421,177 388,437
Operating costs, net 550,458 567,682 2,097,699 1,329,063
General and administrative costs 164,086 180,744 478,699 453,786
Share-based compensation - - - 95,695
Foreign exchange loss (gain) (69,861) (111,839) 7,449 (12,094)
Total operating expenses 965,311 934,665 3,732,275 2,884,086
Operating loss (913,230) (934,648) (3,672,683) (2,882,383)
Other Non-Operating Charges and Write-downs
Gain on settlement of liability - - - (200,640)
Fair value change in warrant liability - - - 261,720
Share of losses of associate - (166,224) - (498,671)
Tax recovery - - - 536,694
Net loss for the period (913,230) (1,100,872) (3,672,683) (2,783,280)
Foreign currency translation adjustment (38,529) 101,779 5,359 (183,996)
Comprehensive loss for the period (951,759) (999,093) (3,667,324) (2,967,276)
Basic and diluted net loss per share: (0.002) (0.003) (0.010) (0.008)
Weighted average number of ordinary shares used in computing basic and diluted 370,173,680 369,421,234 370,173,680 368,987,135
net loss per share
Cash Flow Statement
Nine months ended
December 31,
2024 2023
Cash flow from operating activities
Net loss from operations (3,672,683) (2,783,280)
Items not affecting cash:
Share-based compensation - 95,695
Fair value change in warrant liability - (261,720)
Share of losses of companies accounted for at equity - 498,671
Changes in non‑cash working capital:
Government receivable (8,674) 4,166
Accounts payable and accrued liabilities (334,236) (2,897,287)
Accounts receivable and prepaid expenses 38,539 1,449,931
Advance from and amounts owing to license partners (590,482) 357,449
Cash flow from operating activities (4,567,536) (3,536,375)
Cash flow from investing activities
Short-term investments (61,893) -
Acquisition of interest in property (150,000) -
Acquisition of Orinduik BV (*) - (700,000)
Proceeds from Block 3B/4B farm-out 7,834,866 2,500,000
Cash flow from investing activities 7,622,973 1,800,000
Cash flow from financing activities - -
Increase (decrease) in cash and cash equivalents 3,055,437 (1,736,375)
Foreign exchange differences 5,359 (183,996)
Cash and cash equivalents, beginning of period 2,967,005 4,110,734
Cash and cash equivalents, end of period 6,027,801 2,190,363
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, 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
Charles Denley-Myerson
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 5.25%
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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