REG - Eco (Atlantic) O&G - Results For Three & Nine Months Ended 31 Dec 2025
02/03/2026 07:00
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RNS Number : 8816U Eco (Atlantic) Oil and Gas Ltd. 02 March 2026
02 March 2026
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 2025
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 and nine
month periods ended 31 December 2025.
Highlights:
Financial
• The Company had cash and cash equivalents of US$2.9 million and no debt as at
31 December 2025, before a capital raise of US$10 million completed on 29
January 2026.
• The Company had total assets of US$19.9 million, total liabilities of US$1.3
million and total equity of US$18.7 million as at 31 December 2025.
• On December 4, 2025 Eco signed a binding Framework and Options Agreement with
Navitas Petroleum LP ("Navitas") for the Orinduik Block offshore Guyana and
Block 1 CBK offshore South Africa as well as future oil and gas cooperation
for the entire portfolio and new ventures (the "Framework Agreement"). As
part of the Framework Agreement, Navitas paid Eco Atlantic US$2 million to
enter into an exclusive option agreements to farm-in to the Orinduik Block and
Block 1 CBK.
Post-period end
• On January 29, 2026, Eco raised US$10 million at the then market price with
new Israeli based institutional investors.
• On February 19, 2026 the trading of the common shares in the capital of Eco
migrated to the London Stock Exchange's SETS trading platform ("SETS"),
enabling new and existing international institutional investors to trade Eco's
shares on a continuous basis.
• Further to the Company's announcement on January 13, 2025, a total of
3,700,000 Restricted Share Units ("RSUs") issued to certain directors and
officers of the Company have now vested and automatically will be converted
into common shares in the capital of the Company ("Common Shares") (the "RSU
Conversion Shares").
South Africa
Block 1 CBK
• As part of the Framework Agreement, Navitas was granted the Block 1 CBK Option
agreement, giving it the right to execute a farmout agreement to farm-in to
Block 1 CBK offshore South Africa such that, on exercise, Navitas will make a
US$4 million payment to Eco and become the Operator of the block with up to a
47.5% working interest, subject, inter alia, to customary government and
regulatory approvals.
• Eco's remaining working interest, amounting up to 47.5%, assuming the exercise
of the option with OrangeBasin Energies (Pty) ltd. will be carried by Navitas
for the work programme, the value of the carry being capped at US$7.5 million
net to Eco.
• In honour of the late Colin Brent Kinley, Eco Atlantic's Co-Founder and former
Chief Operating Officer, who passed away on November 5, 2025, Azinam South
Africa Limited ("Azinam SA"), the Operator of Exploration Right 12/3/362, in
agreement with its Joint Venture Partner, renamed Block 1 Offshore South
Africa to "Block 1 CBK" effective 17 November 2025.
• On 19 November 2025, the Petroleum Agency of South Africa granted the
Assignment and Transfer of a 25% participating interest from the local JV
partner Tosaco Energy (Pty) Ltd to OrangeBasin Energies (Pty) ltd., a
B-BBEE-rated South African entity.
Block 3B/4B
• Throughout 2025, Eco and its JV partners continued to advance the licence work
programme and preparations for the drilling campaign, including selection of
the initial drilling target, detailed well planning, and procurement of
long-lead items in anticipation of drilling permit approval.
• Third-party legal proceedings around environmental authorisation in Block
5/6/7 have delayed the Department of Forestry, Fisheries and the Environment's
decision on the Block 3B/4B Environmental Authorisation, a delay which remains
outside Eco's control. The Company, with legal and regulatory advisers and in
coordination with Joint Venture partners, continues to maintain engagement
with relevant stakeholders and awaits further direction from the Department of
Mineral Resources and Energy.
• The Company is due to receive additional US$11.5 million from Block 3B/4B JV
partners upon milestones in accordance with previously signed farm out
agreements announced March 6, 2024.
Namibia
• Eco continued to explore options to optimise its portfolio in Namibia, as the
Company shifted its geological focus to deeper proven plays in the country.
• Eco farmed out its entire Working Interest, in PEL 98 (Block 2213 "Sharon
Block") to an arms-length wholly Namibian-owned company, Lamda Energy (Pty)
Ltd ("Lamda Energy ") pending government approval.
• Eco has continued to receive considerable interest in its licenses in Namibia
and is in the process of assessing options to further progress its exploration
work programmes amid a potential farm-out.
Guyana
• As part of the Framework Agreement, Navitas was granted the Orinduik Option
giving it the right to execute a farmout agreement to farm-in to the Orinduik
Block offshore Guyana such that, on exercise, Navitas will make a US$2.5
million payment to Eco and become the Operator of the block with an 80%
working interest, subject, inter alia, to customary government and regulatory
approvals.
• Eco's remaining 20% working interest, assuming exercise of the option, will be
carried in respect of the work to be performed in the Orinduik Block, which
may include drilling the first exploration well or performing an appraisal
programme over the existing Jethro-1 and Joe-1 heavy oil discoveries. The
Orinduik carry is capped at US$11m net to Eco and excludes mobilisation costs,
if any.
Post-period end
• As announced on January 14, 2026, Eco, together with Navitas, is engaged in
ongoing, constructive discussions with the Ministry of Natural Resources
("MNR"), Government of Guyana, regarding the continuation of Eco's appraisal
and exploration programme on the Orinduik Block area.
• To this effect, the MNR and Guyana Geology and Mines Commission are in receipt
of the relevant joint submissions from Eco Atlantic and Navitas. Eco Atlantic
and Navitas continue to pursue the most efficient and value-accretive path
forward that will be acceptable to the Ministry.
Falkland Islands
Post-period end
• On January 12, 2026, Navitas signed a non-binding Memorandum of Agreement with
JHI Associates Inc ("JHI"), in which Eco has a 6.6% interest, for a farm-in to
acquire a 65% Working Interest in the PL001 North Falklands Basin Licence,
which is adjacent to Navitas' operated Sea Lion Development. Eco expects that
the parties will reach a definitive agreement in March 2026.
Corporate Presentation
Eco also announces that a new Corporate Presentation has been published on its
website and is available at the following link :
https://www.ecooilandgas.com/investors/results-presentation/
(https://www.ecooilandgas.com/investors/results-presentation/)
Gil Holzman, President and Chief Executive Officer of Eco Atlantic,
commented:
"This period saw Eco deliver a number of important strategic and financial
milestones that have transformed our business and further strengthen our
platform across the Atlantic Margins. Most notably, we are now in a Strategic
Partnership with Navitas, which includes option agreements over both Orinduik
and Block 1 CBK. This represents a significant validation of the quality of
our portfolio and, on exercise, will provide near-term capital alongside
meaningful carried exposure across key assets. We look forward to deepening
our collaboration with Navitas further as we explore options to maximise the
potential of our world-class assets.
"In South Africa, we were pleased to see progress at Block 1 CBK, renamed in
honour of the late Colin Kinley, with the approval of the 25% interest
transfer to OrangeBasin Energies, reinforcing our commitment to local
partnerships. While we wait to hear back from the South African Government on
the environmental permitting for Block 3B/4B, we remain confident that a
solution to progress the project will be found and the JV will continue its
drilling preparations.
"In Guyana, we continue to work constructively with Navitas and the Government
to advance the Orinduik block in a manner that is in alignment with all
stakeholders and value-accretive for our investors. We look forward to
providing further updates as we progress the development of our highly
prospective acreage in the country.
"As part of its ongoing efforts to maximise shareholder value across its
assets, Eco has shifted its strategic focus in Namibia towards proven
deepwater plays. In doing so, Eco was able to secure licence extensions across
its licences while also optimising its portfolio through the farmout of its
interest in PEL 98. We are making significant headway in our farmout
negotiations for our other acreage offshore Namibia and look forward to being
able to update investors as these negotiations progress further.
"Post period end, the successful US$10 million private placement and our
migration to SETS have helped to further enhance our financial flexibility and
market accessibility. With a strengthened balance sheet, high-quality
partners, and multiple catalysts across our jurisdictions, Eco is well
positioned as we move into the rest of 2026 and beyond."
Admission and Total Voting Rights
Application is being made to the London Stock Exchange for admission of the
RSU Conversion Shares to trading on AIM. It is expected that AIM Admission
will take place at 8.00 a.m. (GMT) on or around 4 March 2026. Application will
be made to the TSX-V for the RSU Conversion Shares to be admitted to trading
on the TSX-V, with listing subject to the approval of the TSX-V and the
Company satisfying all of the requirements of the TSX-V.
Following Admission, the issued share capital of the Company will be
345,841,027 Common Shares. The above figure may be used by shareholders as the
denominator for the calculations by which they will determine if they are
required to notify their interest in, or a change to their interest in, the
share capital of the Company under the FCA's Disclosure Guidance and
Transparency Rules.
The Company's unaudited financial statements for the three and nine month
periods ended 31 December 2025 is available for download on the Company's
website at www.ecooilandgas.com (http://www.ecooilandgas.com) and on SEDAR+ at
www.sedarplus.ca..
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,
2025 2025
Assets
Current Assets
Cash and cash equivalents 2,946,643 4,726,152
Short-term investments 72,864 69,676
Government receivable 20,329 58,933
Amounts owing by license partners - 206,818
Accounts receivable and prepaid expenses 64,150 54,550
Total Current Assets 3,103,986 5,116,129
Non- Current Assets
Petroleum and natural gas licenses 16,822,274 16,447,274
Total Non-Current Assets 16,822,274 16,447,274
Total Assets 19,926,260 21,563,403
Liabilities
Current Liabilities
Accounts payable and accrued liabilities 1,264,812 1,178,785
Total Current Liabilities 1,264,812 1,178,785
Total Liabilities 1,264,812 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 3,825,345 3,209,329
Foreign currency translation reserve (1,559,510) (1,527,171)
Accumulated deficit (102,373,972) (100,067,125)
Total Equity 18,661,448 20,384,618
Total Liabilities and Equity 19,926,260 21,563,403
Income Statement
Three months ended Nine months ended
December 31, December 31,
2025 2024 2025 2024
Income
Interest income 26 52,081 18,122 59,592
Income from option grant 2,000,000 - 2,000,000 -
Total Income 2,000,026 52,081 2,018,122 59,592
Operating expenses
Compensation costs 300,965 255,939 1,006,608 727,251
Professional fees 315,152 64,689 565,189 421,177
Operating costs, net 194,331 550,458 1,669,787 2,097,699
General and administrative costs 82,683 164,086 476,778 478,699
Share-based compensation 206,086 - 616,016 -
Foreign exchange loss (gain) (2,455) (69,861) (9,409) 7,449
Total operating expenses 1,096,762 965,311 4,324,969 3,732,275
Net profit (loss) for the period, before taxes 903,264 (913,230) (2,306,847) (3,672,683)
Tax recovery - -
Net profit (loss) for the period, after taxes 903,264 (913,230) (2,306,847) (3,672,683)
Foreign currency translation adjustment (13,822) (38,529) (32,339) 5,359
Comprehensive profit (loss) for the period 889,442 (951,759) (2,339,186) (3,667,324)
Basic and diluted net loss per share: 0.003 (0.002) (0.007) (0.010)
Weighted average number of ordinary shares used in computing basic and diluted 315,231,936 370,173,680 315,231,936 370,173,680
net loss per share
Cash Flow Statement
Nine months ended
December 31,
2025 2024
Cash flow from operating activities
Net loss from operations (2,306,847) (3,672,683)
Items not affecting cash: (non-cash / non-operating adjustment)
Share-based compensation 616,016 -
Changes in non‑cash working capital:
Government receivable 38,604 (8,674)
Accounts payable and accrued liabilities 86,027 (334,236)
Accounts receivable and prepaid expenses (9,600) 38,539
Advance from and amounts owing to license partners 206,818 (590,482)
Cash flow from operating activities (1,368,982) (4,567,536)
Cash flow from investing activities
Short-term investments (3,188) (61,893)
Acquisition of interest in property (375,000) (150,000)
Proceeds from Block 3B/4B farm-out - 7,834,866
Cash flow from investing activities (378,188) 7,622,973
Decrease in cash and cash equivalents (1,747,170) 3,055,437
Foreign exchange differences (32,339) 5,359
Cash and cash equivalents, beginning of period 4,726,152 2,967,005
Cash and cash equivalents, end of period 2,946,643 6,027,801
**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, President & Chief Executive Officer
Alice Carroll, VP Business Development & Corporate Affairs
Strand Hanson (Financial & Nominated Adviser) +44 (0) 20 7409 3494
James Harris, James Bellman
Canaccord Genuity (Joint Broker) +44 (0) 20 7523 8000
Henry Fitzgerald-O'Connor, Charlie Hammond
Berenberg (Joint Broker) +44 (0) 20 3207 7800
Matthew Armitt
Celicourt (PR) +44 (0) 20 7770 6424
Mark Antelme, Charles Denley-Myerson
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.
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.
In 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 three offshore
Petroleum Licences: PELs: 97, 99, and 100, representing a combined area of
22,893 km(2) in the Walvis Basin. In Offshore South Africa, Eco holds a 5.25%
Working Interest in Block 3B/4B and a 75% Operated Interest in Block 1 CBK, 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 within the meaning of applicable Canadian
securities laws and may constitute forward-looking statements under the
securities laws of other jurisdictions including, without limitation,
management's business strategy, and management's assessment of future plans
and operations, the exercise of option agreements, the negotiation and
execution of definitive farm-in agreements, the receipt of milestone payments,
the timing and receipt of governmental and regulatory approvals, the
advancement of drilling and appraisal programmes, potential farm-out
transactions, and the Company's future financial position and growth
prospects, and 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, but not limited to successful negotiation
of farm-in agreement, results of exploration as proposed or at all, the
exercise of options by counterparties, and the completion of work programmes.
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. Forward-looking
statements are based on certain material assumptions, including, without
limitation: the timely receipt of required governmental, regulatory and
third-party approvals; the ability of the Company and its counterparties to
negotiate and execute definitive agreements; the ability of joint venture
partners to fund and carry agreed work programmes; the accuracy of geological,
technical and economic interpretations; the availability of financing on
reasonable terms; the continued support of regulatory authorities; and
prevailing economic, market and industry conditions. 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, including but not limited to: failure to obtain required
regulatory or environmental approvals; delays in permitting; failure of
counterparties to exercise options or complete farm-in transactions; delays in
receipt of milestone payments; exploration and drilling risks, including the
risk of non-commercial discoveries; commodity price volatility; joint venture
and partner risks; political and geopolitical risks in the jurisdictions in
which the Company operates; financing risks; and general economic conditions.
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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. END QRTKZGGFRMZGVZM
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