30
July 2024
ECO (ATLANTIC) OIL & GAS
LTD.
("Eco,"
"Eco Atlantic," "Company," or together with its subsidiaries, the
"Group")
Audited Results for the Year
Ended 31 March 2024
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 2024.
Highlights:
Financials (as at 31 March
2024)
·
The Company had cash and cash equivalents of
US$2.97 million and no debt as at 31 March 2024.
o Following a significant reduction in costs (including G&A,
professional fees and operating expenses) as of the time of
publication, Eco has a cash position of ca.US$1.5
million.
·
The Company had total assets of US$31.3 million,
total liabilities of US$1.25 million and total equity of US$30.0
million as at 31 March 2024.
Post-period end
·
Following the successful farm-out deal of Block
3B/4B, Eco expects to receive a first tranche of US$8.3 million
during August 2024, subject to customary closing conditions being
met. The resultant proceeds are expected to give Eco a cash and
cash equivalents position of c.US$10 million, with no near-term
capital commitments for operational expenses.
Operations:
South Africa
Block 1 (post-period end)
·
In June 2024, Eco announced a Farm-In into Block 1
Offshore South Africa Orange Basin. The Company will acquire a 75%
Working Interest ("WI") from Tosaco Energy (Proprietary) Limited
("Tosaco") and will become Operator of a new Exploration
Right.
·
Block 1 has significant 2D and 3D seismic data
already completed and no additional seismic acquisition or drilling
of wells is committed in the three-year carried period. Eco intends
to complete the interpretation and analysis required for its
planned Work Program with its in-house exploration team. The
Farm-in is subject, inter alia, to normal Governmental approvals
and no field activity is currently planned that requires
environmental permitting.
Block 3B/4B
·
In March 2024, Eco and its JV partners signed a
farm-out transaction with TotalEnergies EP South Africa B.V., who
will become Operator ("TotalEnergies") and QatarEnergy
International E&P LLC ("QatarEnergy"). Under the agreement, Eco
would retain a 13.75% Participating Interest in Block 3B/4B,
offshore the Republic of South Africa.
Post-period end
·
On July 29, 2024, the Company announced the
signing of an agreement to sell a 1% interest in Block 3B/4B in
exchange for cancellation of all of Africa Oil's shares and
warrants in Eco (worth C$ 11.5m). Upon Completion of the
transaction, Eco will hold a fully carried 5.25% interest in Block
3B/4B Offshore South Africa, reducing from the current
6.25%.
·
Upon closing, which is expected to occur in August
2024, Total will assume operatorship and will lead the drilling
planning and preparations.
Block 2B (post-period
end)
·
In June 2024, the Company relinquished its 50% WI
Operated offshore Block 2B where it drilled its 2022 Gazania-1 well
offsetting the AJ-1 oil discovery. The Company has completed all
necessary documentation, and environmental audits, and has informed
the Petroleum Agency of South Africa ("PASA"), the regulator for
the Government of South Africa.
Namibia
·
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 km2 in the Walvis
Basin.
Post-period end
·
Eco added ~1,383km 2D data licensed on PEL100
(Tamar block) to its database, which is being technically evaluated
and interpreted by the team to define additional seismic
acquisition areas within the Block, along with new leads and
prospects.
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 Hammerhead.
Investor Meet Company
·
Gil Holzman, President and Chief Executive Officer
will provide an Annual Results Investor Update via Investor Meet
Company today at 14:00 BST. The presentation is open to all
existing and potential shareholders and questions can be asked at
any time during the live presentation. More information about the
presentation can be found in the Company's announcement of 24 July
2024.
Gil Holzman, President and Chief
Executive Officer of Eco Atlantic, commented:
"We made considerable progress
across our asset portfolio during the financial year to 31 March
2024. This has been achieved at a time when we have had a strict
focus on costs, which has seen the Company operate with non
dilutive financings for the last two years, and agree a farm-out on
Block 3B/4B which will significantly increase our cash resources,
and leaves tremendous upside potential on the table in the event a
discovery is drilled on the block.
"In Namibia and Guyana, we have
active farm-out processes underway, and we are very upbeat about
the number and calibre of the companies we have had in our data
rooms. Both jurisdictions remain at the forefront of global
hydrocarbon exploration and we are confident of delivering a
positive update on both in due course.
"We were also pleased to announce
the deal with Africa Oil yesterday, which saw us agree the sale of
a 1% interest in the Block in exchange for the cancellation of all
of AOI's shares and warrants in Eco, worth C$11.5 million. We are
grateful to Africa Oil for their support since 2017, and this
agreement will enable us to eliminate a c.16% overhang
in Eco's shares, which are locked up until the transaction closes
and the shares and warrants are cancelled. I would also add that
the deal was agreed using an US$840 million valuation for Block
3B/4B, which values Eco's 5.25% holding at ca.US$44
million.
"As ever, we continue to work hard to deliver value for all of
our stakeholders and we look forward to providing further market
updates in due course."
The Company's audited financial
statement for the year ended 31 March 2024 is available for
download on the Company's website at www.ecooilandgas.com
and on Sedar at 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,
|
|
March 31,
|
|
2024
|
2023
|
|
Assets
|
|
|
|
|
Current Assets
|
|
|
|
|
Cash and cash equivalents
|
2,967,005
|
|
4,110,734
|
|
Short-term investments
|
13,107
|
|
13,107
|
|
Government receivable
|
26,970
|
|
22,494
|
|
Amounts owing by license partners
|
49,578
|
|
477,578
|
|
Accounts
receivable and prepaid expenses
|
38,539
|
|
1,529,451
|
|
Total Current Assets
|
3,095,199
|
|
6,153,364
|
|
|
|
|
|
|
Non- Current Assets
|
|
|
|
|
Investment in
associate
|
-
|
|
8,612,267
|
|
Petroleum and
natural gas licenses
|
28,168,439
|
|
40,852,020
|
|
Total Non-Current Assets
|
28,168,439
|
|
49,464,287
|
|
Total Assets
|
31,263,638
|
|
55,617,651
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Current Liabilities
|
|
Accounts payable and accrued liabilities
|
1,163,546
|
|
4,416,789
|
|
Advances from and amounts owing to license partners
|
81,952
|
|
286,553
|
|
Warrant
liability
|
-
|
|
261,720
|
|
Total Current Liabilities
|
1,245,498
|
|
4,965,062
|
|
|
|
|
|
|
Total Liabilities
|
1,245,498
|
|
4,965,062
|
|
|
|
|
|
|
Equity
|
|
|
|
|
Share capital
|
122,088,498
|
|
121,570,983
|
|
Restricted Share Units reserve
|
920,653
|
|
920,653
|
|
Warrants
|
14,778,272
|
|
14,778,272
|
|
Stock options
|
2,900,501
|
|
2,804,806
|
|
Foreign currency translation reserve
|
(1,568,469)
|
|
(1,458,709)
|
|
Accumulated deficit
|
(109,101,315)
|
|
(87,963,416)
|
|
|
|
|
|
|
Total Equity
|
30,018,140
|
|
50,652,589
|
|
|
|
|
|
|
Total Liabilities and Equity
|
31,263,638
|
|
55,617,651
|
Income Statement
|
|
|
Year ended
|
|
|
March 31,
|
|
|
|
2024
|
|
2023
|
|
Revenue
|
|
|
|
|
|
Interest income
|
|
1,708
|
|
66,571
|
|
|
|
1,708
|
|
66,571
|
|
Operating expenses:
|
|
|
|
|
|
Compensation costs
|
|
851,068
|
|
905,974
|
|
Professional fees
|
|
589,810
|
|
694,304
|
|
Operating costs, net
|
|
2,662,347
|
|
33,039,264
|
|
General and administrative
costs
|
|
658,443
|
|
848,893
|
|
Share-based compensation
|
|
95,695
|
|
2,968,294
|
|
Foreign exchange loss
(gain)
|
|
(14,354)
|
|
559,947
|
|
Total operating expenses
|
|
4,843,009
|
|
39,016,676
|
|
|
|
|
|
|
|
Operating loss
|
|
(4,841,301)
|
|
(38,950,105)
|
|
|
|
|
|
|
|
Other Non-Operating Charges and Write-downs
|
|
|
|
|
|
|
|
|
|
|
|
Gain on settlement of
liability
|
|
299,360
|
|
-
|
|
Fair value change in warrant
liability
|
|
261,720
|
|
2,980,042
|
|
Share of losses of
associate
|
|
-
|
|
(664,895)
|
|
Write down of investment in
associate
|
|
(8,612,267)
|
|
-
|
|
Write down of license
|
|
(8,782,105)
|
|
-
|
|
Net
loss for the year from continuing operations, before
taxes
|
|
(21,674,593)
|
|
(36,634,958)
|
|
Tax recovery
|
|
536,694
|
|
-
|
|
Net
loss for the year from continuing operations, after
taxes
|
|
(21,137,899)
|
|
(36,634,958)
|
|
Gain from discontinued operations,
after-tax
|
|
-
|
|
80,204
|
|
Net
loss for the year
|
|
(21,137,899)
|
|
(36,554,754)
|
|
|
|
|
|
|
|
Foreign currency translation
adjustment
|
|
(109,760)
|
|
(148,982)
|
|
Comprehensive loss for the year
|
|
(21,247,659)
|
|
(36,703,736)
|
|
|
|
|
|
|
|
Basic and diluted net loss per
share:
|
|
|
|
|
|
From
continuing operations
|
|
(0.06)
|
|
(0.10)
|
|
From
discontinued operations
|
|
-
|
|
-
|
|
Weighted average number of ordinary
shares used in computing basic and diluted net loss per
share
|
|
369,287,447
|
|
349,622,239
|
Cash Flow Statement
|
|
Year ended
|
|
|
March 31,
|
|
2024
|
|
2023
|
|
Cash flow from operating activities - continued
operations
|
|
|
|
|
Net loss from continuing
operations
|
(21,137,899)
|
|
(36,634,958)
|
|
Items not affecting cash:
|
|
|
|
|
Share-based
compensation
|
95,695
|
|
2,968,295
|
|
Fair value change in
warrant liability
|
(261,720)
|
|
(2,980,042)
|
|
Share of losses of
companies accounted for at equity
|
-
|
|
664,895
|
|
Write down of equity
investment
|
8,612,267
|
|
-
|
|
Write down of
license
|
8,782,105
|
|
-
|
|
Changes in non‑cash working
capital:
|
|
|
|
|
Government
receivable
|
(4,476)
|
|
4,993
|
|
Accounts payable and
accrued liabilities
|
(3,134,252)
|
|
2,484,966
|
|
Accounts receivable and
prepaid expenses
|
1,490,912
|
|
(1,271,540)
|
|
Advance from and
amounts owing to license partners
|
223,399
|
|
(191,025)
|
|
Cash flow from operating activities - continued
operations
|
(5,333,969)
|
|
(34,954,416)
|
|
|
|
|
|
|
Cash flow from operating activities - discontinued
operations
|
-
|
|
(839,029)
|
|
|
|
|
|
|
Cash flow from investing activities
|
|
|
|
|
Short-term
investments
|
-
|
|
39,511
|
|
Acquisition of
interest in property
|
|
|
(1,598,986)
|
|
Acquisition of
Orinduik BV
|
(700,000)
|
|
-
|
|
Proceeds from
Block 3B/4B farm-out
|
5,000,000
|
|
-
|
|
Cash flow from investing activities - continued
operations
|
4,300,000
|
|
(1,559,475)
|
|
|
|
|
|
|
Cash flow from investing activities - discontinued
operations
|
-
|
|
2,507,713
|
|
|
|
|
|
|
Cash flow from financing activities
|
|
|
|
|
Proceeds from private
placements, net
|
-
|
|
35,666,089
|
|
Cash flow from financing activities
|
-
|
|
35,666,089
|
|
|
|
|
|
|
Increase (decrease) in cash and cash
equivalents
|
(1,033,969)
|
|
820,882
|
|
Foreign exchange
differences
|
(109,760)
|
|
(148,982)
|
|
Cash and cash equivalents, beginning
of year
|
4,110,734
|
|
3,438,834
|
|
|
|
|
|
|
Cash and cash equivalents, end of year
|
2,967,005
|
|
4,110,734
|
**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, Executive
Director
|
|
|
Strand Hanson (Financial & Nominated
Adviser)
|
+44 (0) 20 7409 3494
|
|
James Harris
James Bellman
|
|
|
Berenberg (Broker)
|
+44 (0) 20 3207 7800
|
|
Matthew Armitt
Detlir Elezi
|
|
|
Celicourt (PR)
|
+44 (0) 20 7770 6424
|
|
Mark Antelme
Jimmy Lea
|
|
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 km2 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
km2 in the Walvis Basin. Offshore South Africa,
Eco holds a 20% Working Interest in Block
3B/4B and pending government approval a 75% Operated Interest in
Block 1, in the Orange Basin, totalling some
37,510km2.