Eco (Atlantic) Oil & Gas, the oil and gas exploration company focused on the offshore Atlantic Margins, has announced its unaudited results for the three-month period ended 30 June 2024.
Highlights:
Financials
- The Company had cash and cash equivalents of US$1.185 million and no debt as at 30 June 2024.
- The Company had total assets of US$29.65 million, total liabilities of US$0.791 million and total equity of US$28.859 million as at 30 June 2024.
Post-period end
- Following the completion of a farm down of a 13.75% Participating Interest in Block 3B/4B offshore the Republic of South Africa, as announced on 28 August 2024, Eco is due to receive US$8.3million in total as part of the 3B/4B Transaction. This is expected to give Eco a cash and cash equivalents position of over US$9 million on receipt, expected during early September 2024.
Operations:
South Africa
Block 1 (post-period end)
- On June 5, 2024, Eco announced the Farm-In into Block 1 Offshore South Africa Orange Basin. Through Azinam South Africa, the Company will farm-in and acquire a 75% working interest from Tosaco Energy and will become operator of a new exploration right.
Block 3B/4B
- In July 2024, Eco signed an agreement to sell a 1% interest in Block 3B/4B in exchange for cancellation of all of Africa Oil's ("AOI") shares and warrants in Eco (worth approximately C$ 11.5m at the time of agreement). 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%. Closing is expected to occur in Q4 2024.
Post-period end
- On August 28, 2024, the Company announced the completion of a farm down of a 13.75% Participating Interest in Block 3B/4B offshore the Republic of South Africa and Transfer of Operatorship of the Block after receipt of the requisite regulatory approvals (Section 11) from the government of South Africa. Eco now holds a 6.25% interest in Block 3B/4B.
- Further to the Company's announcement on 6 March 2024 detailing the Farmout Agreement ("FOA"), Azinam Limited, Eco's wholly owned subsidiary, has farmed down a 13.75% Participating Interest in Block 3B/4B, offshore the Republic of South Africa as part of an aggregate 57% farm down transaction along with its Joint Venture Partners Africa Oil SA Corp. and Ricocure (Proprietary) Limited to TotalEnergies EP South Africa S.A.S., who will become Operator and QatarEnergy International E&P LLC.
- Following Completion, Eco is now due to receive US$8.3million in total as part of the 3B/4B Transaction, including Completion linked milestone payments of US$4m from Africa Oil and US$1.56m from Ricocure, as referred to in the Company's announcement of 6 March 2024. Further payments, amounting to $11.5m will be payable to Eco from TotalEnergies, QatarEnergy and Africa Oil on spudding of the first exploration well.
Block 2B
- 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, the regulator for the Government of South Africa.
Namibia
- A multi-block farm out 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.
- 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 is encouraged to see the growing activity surrounding its acreage, notably ExxonMobil's plans for a seventh development at Hammerhead in the Stabroek Block.
Gil Holzman, President and Chief Executive Officer of Eco Atlantic, commented:
'We continued to make significant progress across our asset base during the period. On Block 3B/4B, we announced the completion of Eco's farm-out agreement with TotalEnergies and QatarEnergy, which will see Eco receive US$8.3 million while still maintaining a material interest in the Block.
'We also announced Eco's transaction with AOI, where the Company sold a 1% interest in Block 3B/4B in exchange for cancellation of all of Africa Oil's shares and warrants in Eco worth C$ 11.5m. Eco continues to possess significant upside potential and exposure to assets offshore South Africa and in the Orange Basin, two highly exciting regions for hydrocarbon prospectivity.
'Our active farm-out processes in both Namibia and Guyana have seen Eco actively engaged with a number of potential high-calibre partners as we work to monetise these licences as fast as is practically possible for the benefit of all involved. We look forward to providing updates on material developments to all our stakeholders over the coming months.'
Source: Eco (Atlantic)
