Eco (Atlantic) Oil & Gas Ltd. release Unaudited Results for 2022
Eco (Atlantic) Oil & Gas Ltd. , 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 2022, and to provide a corporate and operational update.
Highlights:
Financials (as at 31 December 2022)
· The Company had cash and cash equivalents of US$14.5 million and no debt as at 31 December 2022.
· The Company had total assets of US$68.0 million, total liabilities of US$17.8 million and total equity of US$50.1 million as at 31 December 2022.
Operations:
South Africa
Block 2B
· In November 2022, the JV Partners submitted a Production Right Application to the Petroleum Agency of SouthAfrica (“PASA”), based on the existing oil discovery of AJ-1 and potential future operations.
· Following the drilling of the Gazania-1 well in November 2022, further analysis of the well data is being undertaken to determine next steps on the Block.
· Eco and its JV partners continue to believe that Block 2B contains considerable hydrocarbon resources and further updates will be made in due course on how the JV partners will look to deliver value from the licence for the benefit of all stakeholders.
Block 3B/4B
· In December 2022, Eco received regulatory approval from the Department of Mineral Resources and Energy (“DMRE”) of South Africa and Petroleum Agency South Africa (“PASA”) in respect of its acquisition of an additional 6.25% participating interest in the Block (the “Acquisition”), giving Eco an overall interest of 26.25%.
· As the final instalment of the share consideration due in respect of the Acquisition, Eco is issuing an additional 1,666,666 common shares to the Lunn Family Trust, the Vendor (the “Final Consideration Shares”).
· The Company and its JV partners are progressing plans to conduct a two-well campaign on Block 3B/4B and in addition continue to progress the collaborative farm-out process, up to 55% gross working interest in the Block, with various potential parties.
· The JV Partners have selected a leading South African environmental consulting firm to conduct a comprehensive Environmental and Social Impact Assessment (ESIA) process commencing in March 2023 in preparation for permitting and drilling activity on the Block.
· Africa Oil Corp. the Operator of the Block is preparing a new 51-101 Competent Person’s Report following the completion of the 3D data reprocessing and targets and leads identification.
Namibia
· Namibia witnessed some of the largest oil exploration discoveries in the world in 2022 and with significant exploration activity set to continue this year, the Company believes that its highly strategic acreage in-country will remain of considerable interest to operators looking to enter the region.
· Eco continues to explore possible farm out opportunities with its four licences in the region and will update investors on developments accordingly.
Guyana
· Eco and its JV partners on the Orinduik Block, offshore Guyana, continue to work towards identifying the optimal drilling target and Eco plans to drill at least one well into a light oil Cretaceous target in the next 12-18 months.
· With an excess of 11 billion barrels of oil discovered in Guyana to date, the region has become one of the most prolific hydrocarbon basins in the world. Eco continues to work towards unlocking the potential of the Orinduik Block as fast as practically possible.
Gil Holzman, President and Chief Executive Officer of Eco Atlantic, commented:
“We have had a busy start to the year, and I am pleased to report substantial progress across a number of fronts in our exciting exploration portfolio.
Following our drilling campaign on Block 2B, offshore South Africa, in Q4 2022, we continue to analyse the well data obtained from the Gazania-1 well. We remain of the view that considerable untapped potential remains in the asset and we are working with our partners on the Block to plan our next steps, in order to deliver value for all stakeholders.
Significant progress continues to be made on Block 3B/4B, offshore South Africa, with a number of workstreams progressing well. As we have said previously, we are conducting a farm out process on the licence and we are looking ahead to commencing a two well drilling program once ESIA is completed and permits obtained.
Both Guyana and Namibia continue to yield sizeable discoveries, and we are seeing unprecedented levels of interest for exploration assets in these regions. As such, we continue to progress our highly strategic acreage positions in both Guyana and Namibia and we look forward to updating the market on our farm out program in Namibia and our plans for a drilling campaign in Guyana as soon as practically possible.
We remain excited about the potential for 2023 and we look forward to keeping all stakeholders updated throughout the course of the year.”
Admission of the Common Shares
Application has been made for admission of the Final Consideration Shares, which will rank pari passu with existing Common Shares, to trading on AIM (“Admission“). It is expected that Admission will become effective, and trading will commence on or around 8.00 a.m. on 3 March 2023.
Following Admission of the Consideration Shares, the enlarged issued share capital of the Company will be 367,348,680 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.
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