Eco (Atlantic) Oil & Gas, the oil and gas exploration company focused on the offshore Atlantic Margins, has announced its audited results for the year ended 31 March 2023.
Highlights:
Financials (as at 31 March 2023)
- The Company had cash and cash equivalents of US$3,770,614 and no debt.
- Eco has cash and cash equivalents of US$6.4 million on the balance sheet as at 31 July 2023.
- The Company had total assets of US$53,777,531, total liabilities of US$5.9 million and total equity of US$48 million.
Operations:
South Africa
Block 3B/4B
- Post period end, the Company signed a legally binding Letter of Intent with Africa Oil to farm out a 6.25% Participating Interest in Block 3B/4B, offshore South Africa for up to US$10.5 million in cash.
- In March 2023, Africa Oil released a New Competent Person's Resource Report confirming that the Block contains an estimated P50 Prospective Resources of approximately four billion barrels of oil equivalent ("BOE"), one Billion BOE net to Eco Atlantic prior to the sale of the aforementioned Participating Interest which is expected to complete shortly.
- Eco, alongside its JV Partners, applied for Environmental Authorisation to undertake exploration activities in Block 3B/4B in the Orange Basin. An application was made to drill one well and one contingent well with an area of interest in the north of the Block. A comprehensive Environmental and Social Impact Assessment ("ESIA") process commenced in March 2023, in preparation for drilling activity on the Block.
- The JV partners continue to progress plans to conduct a two-well campaign on the Block in conjunction with progressing the collaborative farm out process, up to 55% gross working interest, with various potential parties.
Block 2B
- On November 15, 2022, a Production Right Application to the Petroleum Agency of South Africa, for Block 2B, based on the existing oil discovery of AJ-1 and potential future operations was submitted by the JV Partners.
- Eco continues to believe that Block 2B contains considerable hydrocarbon resources and looks forward to providing further updates as the Company looks to deliver value from the licence for all stakeholders.
Namibia
- Following the significant drilling success in the area, Eco continues to receive third party interest in its strategic acreage position offshore Namibia.
- The Company continues to assess farm out opportunities with its four licences in the region as it considers options for progressing exploration and commercial activity on its acreage.
Guyana
Eco Atlantic and its JV partners remain committed to further drilling on the Orinduik Block and continue assessing opportunities to drill at least two exploration wells into the light oil cretaceous targets as soon as practical. Further updates will be made on the matter in due course.
Gil Holzman, President and Chief Executive Officer of Eco Atlantic, commented:
'As a business we continue to make significant strides across our strategic portfolio of hydrocarbon assets, in some of the world's most prolific exploration areas. Following the stabilizing of commodity prices during the first half of this year, alongside a number of discoveries being made in and around the regions we operate in, we continue to see strong industry interest in our unique acreage positions in Orange Basin SA, Walvis Basin Namibia, and the Guyana Suriname Basin.
'The agreed transfer of a portion of our WI on Block 3B/4B to our strategic alliance partner Africa Oil will strengthen the JV position amid our continued negotiations with third parties to farm into the Block and execute a drilling campaign targeted for 2024. The proceeds from this agreement give us the opportunity to fund other growth opportunities elsewhere in the portfolio with no shareholder dilution. Also, at 3B/4B, we applied for Environmental Authorisation to undertake further drilling exploration activities as we believe that the licence holds significant potential to be explored by the Joint Venture partnership in South Africa.
'Namibia continues to produce globally significant hydrocarbon discoveries, and as a sizeable licence holder in the region, Eco continues to benefit from heightened levels of industry interest in the area.
'As a Board and Management team, we continue to assess and progress value accretive opportunities across our portfolio, with the goal of delivering substantial shareholder returns over the medium to long term.
'We remain excited about our prospects, and I look forward to providing further updates to the markets during the remainder of the year.'
Source: Eco (Atlantic) Oil & Gas
