REG - Eco (Atlantic) O&G - Audited Results for the Year Ended 31 March 2025
Wed 07:02
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250730:nRSd0863Ta&default-theme=true
RNS Number : 0863T Eco (Atlantic) Oil and Gas Ltd. 30 July 2025
30 July 2025
ECO (ATLANTIC) OIL & GAS LTD.
("Eco," "Eco Atlantic," "Company," or together with its subsidiaries, the
"Group")
Audited Results for the Year Ended 31 March 2025 and Operational Update
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 2025.
Highlights:
Financials (as at 31 March 2025)
· The Company had cash and cash equivalents of US$4.7 million and no
debt as at 31 March 2025.
· The Company had total assets of US$21.6 million, total liabilities of
US$1.2 million and total equity of US$20.4 million as at 31 March 2025.
Post-period end
· Following completion of the Block 3B/4B farm-down offshore South
Africa in 2024, Eco has received an initial milestone payment of US$8.3
million from its JV partners in August 2024. An additional US$11.5 million in
two tranches is expected between Q4 2025 and Q2 2026 under the terms of the
same agreement upon Environmental Impact Assessment and spudding of a first
well.
Operations:
South Africa
· South Africa Portfolio Rationalisation - on December 11, 2024 the
Petroleum Agency South Africa (PASA) confirmed Closure Certificate and full
relinquishment of Block 2B in South Africa where Eco drilled the Gazania 1
well, previously announced June 5, 2024.
Block 1
Post-period end
· On May 6, 2025 Eco completed the acquisition of Block 1's
extensive subsurface data set from the PASA, which includes: Two 3D seismic
surveys covering a combined 3,500 km² (2,000 km² and 1,500 km²), over
20,000 line kilometres of 2D seismic data and well logs from three past
exploration wells drilled on the block.
· On June 5, 2024, Eco announced acquisition of a 75% interest in
Block 1 Offshore South Africa Orange Basin; with the governmental title award
and the Exploration Right and Operatorship having been received on June 4,
2025.
· Eco's G&G team is busy preparing the seismic interpretation
and targets selection and the Company is planning to open a farm out process
and data room in Q3 2025.
Block 3B/4B
· Environmental Authorization was granted by the Department of
Mineral Resources and Energy for the Republic of South Africa on September 16,
2024. The legislative notification and appeals process was carried out with
the relevant regulatory agencies and the Block JV Partners await imminent
final Minister decision on the Environmental Authorisation.
· August 28, 2024 Completion of a previously announced farmout
agreement in which the Company reduced its interest in Block 3B/4B by 13.75%,
after receipt of the requisite regulatory approvals (Section 11) from the
government of South Africa. On completion Eco received an aggregate of $8.3
million. Further details can be found in the South Africa section below.
· On January 13, 2025 completion of previously announced July 29,
2024, transaction with Africa Oil for the sale of a 1% Participating Interest
in Block 3B/4B, including the associated Exploration Right and Joint Operating
Agreement rights in return for a full cancellation of Africa Oil's shares and
warrants held in Eco (amount to ~16% of the Company's issued capital).
Namibia
· In August 2024, the Company purchased the license to 1,324 km
of existing 2D seismic survey in the Tamar Block area (PEL 100), technical
evaluation and interpretation to define additional seismic acquisition areas
within the Block, along with new leads and prospects.
· 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.
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
the Hammerhead discovery.
Gil Holzman, President and Chief Executive Officer of Eco Atlantic,
commented:
"The year to 31 March 2025 was highly active and saw Eco deliver progress
across its existing portfolio, in addition to the Company adding new and
exciting exploration assets into the fold.
In South Africa, we continue to work with our Joint Venture Partners on Block
3B/4B, in order to undertake a drilling campaign as soon as is practically
possible. We are currently awaiting the final environmental permits from the
South African government agencies and will update our stakeholders on the
likely timings in due course. On Block 1, we have already received early,
informal, interest from a number of parties and we plan to launch a formal
farm out process towards the end of August 2025. We have acquired all
existing 3D and 2D seismic surveys previously shot on the block and we are
busy with the initial interpretation, including the mapping of all oil and gas
targets and leads. The Orange Basin has become one of the most attractive
exploration destinations for global oil and gas companies, so we are excited
about what the future has in store for Block 3B/4B and Block 1.
Guyana continues to be one of the most prolific hydrocarbon regions in the
world, and our farm-out process for the Orinduik Block remains ongoing,
including a reassessment by our team of the Jethro discovery parameters.
The remainder of 2025 and into 2026 has the potential to be a highly exciting
period for Eco. We have farm-out processes underway, data analysis ongoing
and a drilling campaign to plan for. All of which has the potential to
deliver significant value for all of Eco's stakeholders in due course."
The Company's audited financial statement for the year ended 31 March 2025 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,
2025 2024
Assets
Current Assets
Cash and cash equivalents 4,726,152 2,967,005
Short-term investments 69,676 13,107
Government receivable 58,933 26,970
Amounts owing by license partners 206,818 49,578
Accounts receivable and prepaid expenses 54,550 38,539
Total Current Assets 5,116,129 3,095,199
Non- Current Assets
Petroleum and natural gas licenses 16,447,274 28,168,439
Total Non-Current Assets 16,447,274 28,168,439
Total Assets 21,563,403 31,263,638
Liabilities
Current Liabilities
Accounts payable and accrued liabilities 1,178,785 1,163,546
Advances from and amounts owing to license partners - 81,952
Total Current Liabilities 1,178,785 1,245,498
Total Liabilities 1,178,785 1,245,498
Equity
Share capital 107,129,936 122,088,498
Restricted Share Units reserve 1,038,722 920,653
Warrants 10,600,927 14,778,272
Stock options 3,209,329 2,900,501
Foreign currency translation reserve (1,527,171) (1,568,469)
Accumulated deficit (100,067,125) (109,101,315)
Total Equity 20,384,618 30,018,140
Total Liabilities and Equity 21,563,403 31,263,638
Income Statement
Year ended
Mar
ch
31,
2025 2024
Operating expenses (gains):
Compensation costs 1,230,813 851,068
Professional fees 540,221 589,810
Operating costs, net 2,816,892 2,662,347
Gain on farm-out (3,395,582) -
General and administrative costs 708,805 658,443
Share-based compensation 426,897 95,695
Interest income (92,074) (1,708)
Foreign exchange loss (gain) 41,577 (14,354)
Operating loss (2,277,549) (4,841,301)
Other Non-Operating Charges and Write-downs
Gain on settlement of liability - 299,360
Fair value change in warrant liability - 261,720
Write down of investment in associate - (8,612,267)
Write down of license - (8,782,105)
Net loss for the year, before taxes (2,277,549) (21,674,593)
Tax recovery - 536,694
Net loss for the year, after taxes (2,277,549) (21,137,899)
Foreign currency translation adjustment 41,298 (109,760)
Comprehensive loss for the year (2,236,251) (21,247,659)
Basic and diluted net loss per share: (0.006) (0.059)
Weighted average number of ordinary shares used in computing basic and 358,131,654 369,287,447
diluted net loss per share
Cash Flow Statement
Year ended
March 31,
2025 2024
Cash flow from operating activities
Net loss from operations (2,277,549) (21,137,899)
Items not affecting cash:
Share-based compensation 426,897 95,695
Fair value change in warrant liability - (261,720)
Write down of equity investment - 8,612,267
Write down of license - 8,782,105
Gain on farm-out (3,395,582) -
Changes in non‑cash working capital:
Government receivable (31,963) (4,476)
Accounts payable and accrued liabilities 15,239 (3,134,252)
Accounts receivable and prepaid expenses (16,011) 1,490,912
Advance from and amounts owing to license partners (239,192) 223,399
Cash flow from operating activities (5,518,161) (5,333,969)
Cash flow from investing activities
Short-term investments (56,569) -
Acquisition of interest in property (150,000) -
Acquisition of Orinduik BV (*) - (700,000)
Proceeds from Block 3B/4B farm-out 7,442,579 5,000,000
Cash flow from investing activities 7,236,010 4,300,000
Increase (decrease) in cash and cash equivalents 1,717,849 (1,033,969)
Foreign exchange differences 41,298 (109,760)
Cash and cash equivalents, beginning of year 2,967,005 4,110,734
Cash and cash equivalents, end of year 4,726,152 2,967,005
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, Chief Executive Officer
Colin Kinley, Chief Operating Officer
Alice Carroll, Head of Corporate Sustainability
Strand Hanson (Financial & Nominated Adviser)
+44 (0) 20 7409 3494
James Harris
James Bellman
Edward Foulkes
Berenberg (Broker) +44 (0) 20 3207 7800
Matthew Armitt
Ciaran Walsh
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 a 75% Operated Interest in Block 1, in the
Orange Basin, totalling approximately 37,510km(2).
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
Certain information set forth in this document contains forward-looking
information and statements including, without limitation, management's
business strategy, and management's assessment of future plans and operations.
Such forward-looking statements or information are provided for the purpose of
providing information about management's current expectations and plans
relating to the future, including successful negotiation of farm-in agreement,
results of exploration as proposed or at all. Forward-looking statements or
information typically contain statements with words such as "anticipate",
"believe", "expect", "plan", "intend", "estimate", "propose", "project",
"potential" or similar words suggesting future outcomes or statements
regarding future performance and outlook. Readers are cautioned that
assumptions used in the preparation of such information may prove to be
incorrect. Events or circumstances may cause actual results to differ
materially from those predicted as a result of numerous known and unknown
risks, uncertainties and other factors, many of which are beyond the control
of the Company. Although the Company believes that the expectations reflected
in these forward-looking statements are reasonable, undue reliance should not
be placed on them as actual results may differ materially from the
forward-looking statements. Factors that could cause the actual results to
differ materially from those in forward-looking statements include risks and
uncertainties identified under the headings "Risk Factors" in the Company's
annual information form dated July 29, 2024 and other disclosure documents
available on the Company's profile on SEDAR+ at www.sedarplus.ca.
(http://www.sedar.com) The forward-looking statements contained in this press
release are made as of the date hereof, and the Company undertakes no
obligation to update publicly or revise any forward-looking statements or
information, except as required by law.
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 by virtue of the Market
Abuse (Amendment) (EU Exit) Regulations 2019.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END FR DBGDRGXDDGUCRecent news on Eco (Atlantic) Oil & Gas
See all newsREG - Eco (Atlantic) O&G - Audited Results for the Year Ended 31 March 2025
AnnouncementREG - Eco (Atlantic) O&G - Holding(s) in Company
AnnouncementREG - Eco (Atlantic) O&G - Exploration Right & 75% Interest in Block 1
AnnouncementREG - Eco (Atlantic) O&G - Update on Block 1, Orange Basin, South Africa
AnnouncementREG - Eco (Atlantic) O&G - Holding(s) in Company
Announcement