REG - Eco (Atlantic) O&G - Unaudited Results for 3 months ended 30 June 2022
25/08/2022 07:00
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RNS Number : 1430X Eco (Atlantic) Oil and Gas Ltd. 25 August 2022
25 August 2022
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 2022
Notification of Investor Presentations
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 2022. In
addition, the Company is notifying the market of an investor event to be held
on 19 September 2022, details of which can be seen below. Today's
announcement follows the recently published Full Year Results and Operational
Update announced on 1 August 2022.
Q1 Highlights:
Financials (as at 30 June 2022)
· The Company had cash and cash equivalents of US$38,753,695, and no
debt.
· The Company had total assets of US$79.8 million, total liabilities of
US$5.9 million and total equity of US$73.9 million.
Corporate:
· Two successful equity fundraises raising combined gross proceeds of
US$37.8 million to fund its ongoing workstreams, including the upcoming
drilling of the Gazania-1 well on Block 2B, offshore South Africa, and
further G&G work across the entire portfolio.
· Completion of acquisition of 100% of Azinam Group Limited ("Azinam"),
including Azinam's entire offshore asset portfolio in Orange Basin South
Africa and Namibia, in return for a 16.5% equity stake in the enlarged Group.
· Acquisition, subject to completion, of an additional 6.25%
Participating Interest in Block 3B/4B, Orange Basin offshore South Africa, for
a consideration of US$10 million.
Operations:
South Africa
· Post period end, the Island Innovator rig, owned by Island Drilling
Company AS, was mobilised ahead of the spud of the Gazania-1 well on Block 2B,
in Orange Basin South Africa.
· The rig is currently offshore Spain heading to Las Palmas for
refuelling and expected to arrive at the drilling location by the end
of September 2022, subject to weather conditions. The Gazania-1 prospect is
targeting a 300 million barrels light oil resource.
Namibia
· Following recent significant hydrocarbon discoveries offshore
Namibia, Eco continues to assess options for progressing exploration and
commercial activity on its acreage.
· Post period end, Eco announced Joint Operating Agreements with
NAMCOR, the National Petroleum Corporation of Namibia, regarding to the
Company's four operated offshore Petroleum Licence ("PEL") interests
in Namibia, being PEL 97 (Cooper), PEL 98 (Sharon), PEL 99 (Guy), and PEL
100 (Tamar).
Guyana
· Eco 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.
Investor Evening - London
Eco would like to invite current and potential shareholders to an early
evening face-to-face presentation by management, followed by a Q&A
session, on Monday, 19 September 2022. Drinks and refreshments will be served
afterwards. The event will take place at The Brewery, 52 Chiswell Street,
London EC1Y 4SD, at 5.30pm for a 6:00pm start. Those wishing to attend are
requested to register by emailing: ecoatlantic@celicourt.uk
(mailto:ecoatlantic@celicourt.uk)
Investor Meet Company Presentation - Live Webinar
Eco is pleased to announce that Gil Holzman and Colin Kinley will provide a
live presentation relating to Q1 Results and upcoming South Africa
Exploration Activities via the Investor Meet Company platform on 20 September
2022 at 3:00pm BST.
The presentation is open to all existing and potential shareholders. Questions
can be submitted pre-event via your Investor Meet Company dashboard up until
9am the day before the meeting or at any time during the live presentation.
Investors can sign up to Investor Meet Company for free and add to meet ECO
(ATLANTIC) OIL & GAS LTD via:
https://www.investormeetcompany.com/eco-atlantic-oil-gas-ltd/register-investor
(https://www.investormeetcompany.com/eco-atlantic-oil-gas-ltd/register-investor)
Investors who already follow ECO (ATLANTIC) OIL & GAS LTD on the
Investor Meet Company platform will automatically be invited.
Gil Holzman, President and Chief Executive Officer of Eco Atlantic,
commented:
"Today's update follows the detailed corporate and operations update provided
earlier this month. However, our Q1 results serve as an important
opportunity to remind investors of the significant near-term catalysts that we
see across our entire Atlantic Margin portfolio, with near-term high impact
drilling offshore South Africa, significant interest in our Namibian portfolio
and plans taking shape with regards to our strategy for value accretion
offshore Guyana, the outlook has never been more positive.
"We are very pleased to invite current and potential investors to meet with
our Board and management team at a shareholder event on 19 September 2022 in
London and for those not able to attend in person we hope you can make the
live webinar on 20 September 2022. We look forward to updating investors on
our plans and answering any questions. We would encourage those who are able
to do so to attend and learn more about our highly strategic acreage across
the world's most attractive exploration hot spots."
The Company's unaudited financial results for the three months ended 30 June
2022, together with Management's Discussion and Analysis as at 30 June 2022,
are available to 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
June 30, March 31,
2022 2022
(Unaudited) (Audited)
Assets
Current assets
Cash and cash equivalents 38,753,695 3,438,834
Short-term investments 52,618 52,618
Government receivable 53,261 27,487
Amounts owing by license partners, net 324,388 -
Accounts receivable and prepaid expenses 229,749 257,911
Assets held for sale 1,983,419 2,061,734
41,397,130 5,838,584
Investment in associate 9,184,859 9,277,162
Petroleum and natural gas licenses 29,253,034 30,753,034
Total Assets 79,835,023 45,868,780
Liabilities
Current liabilities
Accounts payable and accrued liabilities 3,441,593 1,931,823
Current liabilities related to assets held for sale 597,971 473,254
Warrant liability 1,810,778 3,241,762
Total current liabilities 5,850,342 5,646,839
Total liabilities 5,850,342 5,646,839
Equity
Share capital 112,855,965 63,141,609
Shares to be issued - 20,766,996
Restricted Share Units reserve 569,919 267,669
Warrants 14,778,272 7,806,000
Stock options 1,325,230 958,056
Foreign currency translation reserve (1,421,357) (1,309,727)
Accumulated deficit (54,123,348) (51,408,662)
Total Equity 73,984,681 40,221,941
Total Liabilities and Equity 79,835,023 45,868,780
Income Statement
Three months ended
Jun
e
30,
2022 2021
(Unaudited) (Unaudited)
Revenue
Interest income 20,127 4,524
20,127 4,524
Operating expenses:
Compensation costs 269,309 203,760
Professional fees 219,685 38,959
Operating costs 1,943,451 382,865
General and administrative costs 257,290 108,397
Share-based compensation 1,001,219 5,822
Interest expense - 3,404
Foreign exchange loss (gain) 284,427 (45,931)
Total operating expenses 3,975,381 697,276
Operating loss (3,955,254) (692,752)
Fair value change in warrant liability 1,430,984 -
Share of losses of company accounted for at equity (92,303) -
Net loss for the period from continuing operations (2,616,573) (692,752)
Loss from discontinued operations, after-tax (98,113) (132,872)
Net loss for the period (2,714,686) (825,624)
Foreign currency translation adjustment (111,630) 13,249
Comprehensive loss for the period (2,826,316) (812,375)
Net loss for the period attributed to:
Equity holders of the parent (2,714,686) (804,617)
Non-controlling interests - (21,007)
(2,714,686) (825,624)
Basic and diluted net loss per share attributable to equity holders of the (0.009) (0.004)
parent
Weighted average number of ordinary shares used in computing basic and diluted 293,654,835 184,697,723
net loss per share
Cash Flow Statement
Three months ended
June 30,
2022 2021
(Unaudited) (Unaudited)
Cash flow from operating activities
Net loss from continuing operations (2,616,573) (692,752)
Net loss from discontinued operations (98,113) (132,872)
Items not affecting cash:
Share-based compensation 1,001,219 5,822
Depreciation and amortization - 19,169
Accrued interest - 3,404
Revaluation of warrant liability (1,430,984) -
Share of losses of companies accounted for at equity 92,303 -
Changes in non‑cash working capital:
Government receivable (25,774) 20,614
Accounts payable and accrued liabilities 1,681,064 (116,781)
Accounts receivable and prepaid expenses 28,162 (13,152)
Receipt on account of shares - 1,940,021
Reallocation to discontinued operations cashflows (171,294) -
Net change in non-cash working capital items relating to discontinued 203,032 -
operations
Advance from and amounts owing to license partners 1,175,612 5,863
(161,346) 1,039,336
Cash flow from investing activities
Investment in associate - (10,000,000)
Short-term investments - 1,500,022
- (8,499,978)
Cash flow from financing activities
Proceeds from private placements, net 35,587,837 -
35,587,837 -
Increase (decrease) in cash and cash equivalents 35,426,491 (7,460,642)
Foreign exchange differences (111,630) 8,313
Cash and cash equivalents, beginning of period 3,438,834 11,807,309
Cash and cash equivalents, end of period 38,753,695 4,354,980
Notes to the Financial Statements
Basis of Preparation
The Condensed Interim 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.
**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
Matthew 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 8434 2754
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 km(2) 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 km(2) in the Walvis Basin.
Offshore South Africa, Eco is Operator and holds a 50% working interest in
Block 2B and a 20% Working Interest (to be increased to a 26.25% Working
Interest, subject to Completion of the Acquisition announced 27 June 2022) in
Blocks 3B/4B operated by Africa Oil Corp., totalling some 20,643 km(2).
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
(http://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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