REG - Eco (Atlantic) O&G - Results for Three-Month Period Ended 30 June 2025
01/09/2025 07:00
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RNS Number : 3733X Eco (Atlantic) Oil and Gas Ltd. 01 September 2025
1 September 2025
ECO (ATLANTIC) OIL & GAS LTD.
("Eco," "Eco Atlantic," "Company," or together with its subsidiaries, the
"Group")
Results for the Three-Month Period Ended 30 June 2025
Appointment of CFO
Eco (Atlantic) Oil & Gas Ltd. (AIM: ECO, TSX ‐ V: EOG) (Toronto,
Canada), the oil and gas exploration company focused on the offshore Atlantic
Margins, is pleased to announce its unaudited results for the three-month
period ended 30 June 2025, and the appointment of Gadi Levin as Chief
Financial Officer ("CFO").
Highlights:
Financial
· The Company had cash and cash equivalents of US$3.6 million and no
debt as at 30 June 2025.
· The Company had total assets of US$20.4 million, total liabilities of
US$1.5 million and total equity of US$19.0 million as at 30 June 2025.
· All warrants in the Company have now been cancelled or expired, with
no warrants outstanding.
· The company is due to receive additional $11.5m from Block 3B/4B JV
partners upon reaching certain milestones.
South Africa
Block 1
· Further to the Company's announcement on 5 June 2024 detailing Eco's
acquisition of a 75% interest in Block 1 Offshore South Africa Orange Basin,
Eco received the Governmental Title Award and the Exploration Right and
Operatorship, as announced on 4 June 2025.
Block 3B/4B
· On 13 January 2025, Eco announced the completion of the
transaction with Africa Oil Corp. now Meren Energy Inc. for the sale of a 1%
Participating Interest in Block 3B/4B in exchange for the cancellation of its
54,941,744 shares and 4,864,865 warrants in Eco (valued at ~C$11.3 million).
All warrants have now been cancelled or expired, with no warrants outstanding.
· The company is due to receive additional $11.5m from Block 3B/4B
JV partners upon reaching certain milestones.
Namibia
· The Company is witnessing considerable interest in its licenses in
Namibia and is currently assessing options to progress its exploration work
programs amid a potential farm-out.
Guyana
· The Company remains engaged in an active farmout process for the
Orinduik Block and is evaluating the Jethro and Joe heavy oil discoveries to
determine the appropriate appraisal approach.
CFO Appointment
Eco's long-standing CFO Alan Rootenberg has announced his retirement, having
worked with the Company since 2011. The Company would like to thank Alan for
his efforts during his time at Eco and wishes him well in his retirement.
Eco is pleased to announce the appointment of Gadi Levin as CFO effective 2
September 2025. Gadi is a chartered accountant with over 20 years' of
experience in both public and private equity markets. He has been a
long-standing member of Eco's finance team, having previously held the role of
Finance Director since 2016, working closely with Eco's executive team in
support of the effective financial management of the Company.
Gil Holzman, President and Chief Executive Officer of Eco Atlantic,
commented:
"Eco has continued to make progress across its portfolio and operations in the
three months to 30 June 2025. During the period, the Company received the
Governmental Title Award and the Exploration Right and Operatorship for Block
1, offshore South Africa, where Eco now holds a 75% interest. The Orange Basin
remains one of the most exciting offshore postcodes in the world with Eco's
acreage strategically located at its heart. In Namibia, we continue to
progress the license work programs and farm out discussions.
In Guyana, we have continued to hold positive discussions with a number of
prospective partners where we are working hard to realise the potential of the
Orinduik block.
I am also pleased to announce the appointment of Gadi Levin as our CFO
following the retirement of Alan Rootenberg. Gadi has been a key member of
Eco's finance team for many years and I look forward to continuing to work
closely with him. I would also like to thank Alan for all his hard work at Eco
over the years and wish him all the best in his well-deserved retirement.
As we look forward to the rest of 2025, Eco is in a strong position with a
number of potential catalysts to create real value for the Company and its
stakeholders. We look forward to being able to provide further updates as we
advance our various assets, ongoing workstreams, and projects."
The Company's audited financial statement for the three months ended 30 June
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
June 30, March 31,
2025 2025
Assets
Current Assets
Cash and cash equivalents 3,600,127 4,726,152
Short-term investments 73,467 69,676
Government receivable 39,905 58,933
Amounts owing by license partners 34,000 206,818
Accounts receivable and prepaid expenses 54,550 54,550
Total Current Assets 3,802,049 5,116,129
Non- Current Assets
Petroleum and natural gas licenses 16,672,274 16,447,274
Total Non-Current Assets 16,672,274 16,447,274
Total Assets 20,474,323 21,563,403
Liabilities
Current Liabilities
Accounts payable and accrued liabilities 1,521,466 1,178,785
Total Current Liabilities 1,521,466 1,178,785
Total Liabilities 1,521,466 1,178,785
Equity
Share capital 117,730,863 107,129,936
Restricted Share Units reserve 1,038,722 1,038,722
Warrants - 10,600,927
Stock options 3,350,398 3,209,329
Foreign currency translation reserve (1,544,704) (1,527,171)
Accumulated deficit (101,622,422) (100,067,125)
Total Equity 18,952,857 20,384,618
Total Liabilities and Equity 20,474,323 21,563,403
Income Statement
Three months ended
Jun
e
30,
2025 2024
Income
Interest income 15,980 3,211
Operating expenses:
Compensation costs 252,075 199,467
Professional fees 111,603 141,969
Operating costs, net 947,235 541,686
General and administrative costs 126,986 158,025
Share-based compensation 141,069 -
Foreign exchange loss (gain) (7,691) 89,123
Total operating expenses 1,571,277 1,130,270
Net loss for the year, before taxes (1,555,297) (1,127,059)
Tax recovery - -
Net loss for the year, after taxes (1,555,297) (1,127,059)
Foreign currency translation adjustment (17,533) (31,739)
Comprehensive loss for the period (1,572,830) (1,158,798)
Basic and diluted net loss per share: (0.005) (0.003)
Weighted average number of ordinary shares used in computing basic and diluted 315,231,936 370,173,680
net loss per share
Cash Flow Statement
Three months ended
June 30,
2025 2024
Cash flow from operating activities
Net loss from operations (1,555,297) (1,127,059)
Items not affecting cash:
Share-based compensation 141,069 -
Changes in non‑cash working capital:
Government receivable 19,028 10,198
Accounts payable and accrued liabilities 342,681 (372,129)
Accounts receivable and prepaid expenses - 36,533
Advance from and amounts owing to license partners 172,818 (147,693)
Cash flow from operating activities (879,701) (1,600,150)
Cash flow from investing activities
Short-term investments (3,791) -
Acquisition of interest in property (225,000) (150,000)
Cash flow from investing activities (228,791) (150,000)
Idecrease in cash and cash equivalents (1,108,492) (1,750,150)
Foreign exchange differences (17,533) (31,739)
Cash and cash equivalents, beginning of period 4,726,152 2,967,005
Cash and cash equivalents, end of period 3,600,127 1,185,116
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 7770 6424
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,
the outcome of discussions regarding potential partners. 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.
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