Eco (Atlantic) Oil & Gas, the oil and gas exploration company focused on the offshore Atlantic Margins, has announced its results for the three and nine months ended 31 December 2024.
Highlights:
Financials
- The Company had cash and cash equivalents of US$6.03 million and no debt as at 31 December 2024.
- The Company had total assets of US$27.18 million, total liabilities of ~US$82 thousand and total equity of US$26.35 million as at 31 December 2024.
Operations:
South Africa
Block 1
- Eco announced the acquisition of Block 1, Offshore South Africa Orange Basin, in June 2024. Through its 100% owned subsidiary Azinam South Africa, the Company will farm-in and acquire a 75% Working Interest from OrangeBasin Oil and Gas (Proprietary) Limited and will become Operator of a new Exploration Right (the 'Block 1 Acquisition'). Further updates on the plans for the licenses will be made once the final requisite government approvals have been received.
Block 3B/4B
- In January 2025, Eco received approval from the Government of the Republic of South Africa, under Section 11 of the Mineral and Petroleum Resources Development Act, in relation to Eco's Assignment and Share Cancellation Agreement between Azinam, Africa Oil and Africa Oil SA Corp ('AOSAC'). The conditions precedent to the Exchange Transaction, including requisite regulatory approvals from the Government of the Republic of South Africa, TSX Venture Exchange, applicable Canadian Securities Commissions, and the relevant approvals from the Block 3B/4B Joint Venture Partners, have been satisfied and accordingly, Azinam has assigned the Assigned Interest to AOSAC and in return Africa Oil has transferred the Eco Securities which have been cancelled.
- Eco now holds a fully carried 5.25% interest in Block 3B/4B Offshore South Africa, reduced from 6.25%. Following the cancellation of Africa Oil's previously held in aggregate, 54,941,744 Common Shares (valued at c. $CAD11.50 million as at 29 July 2024) (the "Share Cancellation") and 4,864,865 Warrants (collectively, the 'Eco Securities'), the outstanding common share capital of the Company is now reduced to 315,231,936 Common Shares and 48,541,666 warrants.
Namibia
- The previously announced multi-block farm out process for all or part of Eco's four offshore Petroleum Exploration Licences ("PEL"): 97, 98, 99, and 100 is ongoing. Eco holds Operatorship and an 85% Working Interest in each PEL representing a combined area of 28,593 km2 in the Walvis Basin.
- Eco continues to receive considerable interest in its licences and is currently assessing options to progress its exploration work programmes that will include potential farm-out partners. The Company will provide further updates as appropriate.
Guyana
- Eco continues its discussions with interested parties regarding the farmout initiative for the offshore Orinduik Block. ExxonMobil operator of the adjacent Stabroek block announced Hammerhead as its 7th development project and the first one of heavy oil.
Gil Holzman, President and Chief Executive Officer of Eco Atlantic, commented:
'We continue advancing Eco's promising exploration licenses in key hydrocarbon regions. During the period, we completed our transaction with Africa Oil on Block 3B/4B, securing significant exposure to a multi-billion-barrel prospect. This deal also enabled us to cancel approximately CAD $11.5 million in shares and welcome Emily Ferguson to our Board of Directors.
While the farmout processes are progressing, we are in advanced discussions on potential deals in both Namibia and Guyana and look forward to updating the market in due course. Meanwhile, offshore South Africa, we are excited about the upcoming drilling campaign on Block 3B/4B with our JV partners and the formal issuance of Block 1 in the Orange Basin.
With a strong balance sheet and an additional $11.5 million expected from the 3B/4B deal upon milestone completions, Eco is well-positioned for a dynamic period of exploration and deal making.'
The Company's unaudited financial results and Management's Discussion and Analysis for the three and six months ended 31 December 2024 are available for download on the Company's website at www.ecooilandgas.com and on Sedar at www.sedar.com.
Source: Eco (Atlantic) Oil & Gas
