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On February 27, 2025, Eco (Atlantic) Oil & Gas Ltd. announced its unaudited results for the three and nine months ended December 31, 2024, reporting US$6.03 million in cash and US$27.18 million in total assets as of that date. The company's subsidiary, Azinam South Africa, announced in June 2024 the acquisition of a 75% Working Interest in Block 1, Offshore South Africa, and in January 2025, Eco reduced its Block 3B/4B interest from 6.25% to 5.25% after Africa Oil transferred 54,941,744 common shares and 4,864,865 warrants to Eco for cancellation.
| Date | 27 Feb 2025 |
| Time | 07:00:12 |
| Category | Results |
| ID | 6877Y |
27 February 2025
ECO (ATLANTIC) OIL & GAS LTD.
("Eco," "Eco Atlantic," "Company," or together with its subsidiaries, the "Group")
Unaudited Results for the three and nine months ended 31 December 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 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 Limited ("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.
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.
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
|
|
December 31, |
|
March 31, |
|
2024 |
|
2024 |
|
|
Assets |
|
|
|
|
Current Assets |
|
|
|
|
Cash and cash equivalents |
6,027,801 |
|
2,967,005 |
|
Short-term investments |
75,000 |
|
13,107 |
|
Government receivable |
35,644 |
|
26,970 |
|
Amounts owing by license partners |
165,821 |
|
49,578 |
|
Accounts receivable and prepaid expenses |
- |
|
38,539 |
|
Total Current Assets |
6,304,266 |
|
3,095,199 |
|
|
|
|
|
|
Non- Current Assets |
|
|
|
|
Petroleum and natural gas licenses |
20,875,860 |
|
28,168,439 |
|
Total Non-Current Assets |
20,875,860 |
|
28,168,439 |
|
Total Assets |
27,180,126 |
|
31,263,638 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
Current Liabilities |
|
||
|
Accounts payable and accrued liabilities |
829,310 |
|
1,163,546 |
|
Advances from and amounts owing to license partners |
- |
|
81,952 |
|
Total Current Liabilities |
829,310 |
|
1,245,498 |
|
|
|
|
|
|
Total Liabilities |
829,310 |
|
1,245,498 |
|
|
|
|
|
|
Equity |
|
|
|
|
Share capital |
122,088,498 |
|
122,088,498 |
|
Restricted Share Units reserve |
920,653 |
|
920,653 |
|
Warrants |
14,778,272 |
|
14,778,272 |
|
Stock options |
2,900,501 |
|
2,900,501 |
|
Foreign currency translation reserve |
(1,563,110) |
|
(1,568,469) |
|
Accumulated deficit |
(112,773,998) |
|
(109,101,315) |
|
|
|
|
|
|
Total Equity |
26,350,816 |
|
30,018,140 |
|
|
|
|
|
|
Total Liabilities and Equity |
27,180,126 |
|
31,263,638 |
Income Statement
|
|
|
Three months ended |
|
Nine months ended |
||||
|
December 31, |
|
December 31, |
||||||
|
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Revenue |
|
|
|
|
|
|
|
|
|
Interest income |
|
52,081 |
|
17 |
|
59,592 |
|
1,703 |
|
|
|
52,081 |
|
17 |
|
59,592 |
|
1,703 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
Compensation costs |
|
255,939 |
|
208,201 |
|
727,251 |
|
629,199 |
|
Professional fees |
|
64,689 |
|
89,877 |
|
421,177 |
|
388,437 |
|
Operating costs, net |
|
550,458 |
|
567,682 |
|
2,097,699 |
|
1,329,063 |
|
General and administrative costs |
|
164,086 |
|
180,744 |
|
478,699 |
|
453,786 |
|
Share-based compensation |
|
- |
|
- |
|
- |
|
95,695 |
|
Foreign exchange loss (gain) |
|
(69,861) |
|
(111,839) |
|
7,449 |
|
(12,094) |
|
Total operating expenses |
|
965,311 |
|
934,665 |
|
3,732,275 |
|
2,884,086 |
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
(913,230) |
|
(934,648) |
|
(3,672,683) |
|
(2,882,383) |
|
|
|
|
|
|
|
|
|
|
|
Other Non-Operating Charges and Write-downs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on settlement of liability |
|
- |
|
- |
|
- |
|
(200,640) |
|
Fair value change in warrant liability |
|
- |
|
- |
|
- |
|
261,720 |
|
Share of losses of associate |
|
- |
|
(166,224) |
|
- |
|
(498,671) |
|
Tax recovery |
|
- |
|
- |
|
- |
|
536,694 |
|
Net loss for the period |
|
(913,230) |
|
(1,100,872) |
|
(3,672,683) |
|
(2,783,280) |
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment |
|
(38,529) |
|
101,779 |
|
5,359 |
|
(183,996) |
|
Comprehensive loss for the period |
|
(951,759) |
|
(999,093) |
|
(3,667,324) |
|
(2,967,276) |
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net loss per share: |
|
(0.002) |
|
(0.003) |
|
(0.010) |
|
(0.008) |
|
Weighted average number of ordinary shares used in computing basic and diluted net loss per share |
|
370,173,680 |
|
369,421,234 |
|
370,173,680 |
|
368,987,135 |
Cash Flow Statement
|
|
Nine months ended |
||
|
|
December 31, |
||
|
2024 |
|
2023 |
|
|
Cash flow from operating activities |
|
|
|
|
Net loss from operations |
(3,672,683) |
|
(2,783,280) |
|
Items not affecting cash: |
|
|
|
|
Share-based compensation |
- |
|
95,695 |
|
Fair value change in warrant liability |
- |
|
(261,720) |
|
Share of losses of companies accounted for at equity |
- |
|
498,671 |
|
Changes in non‑cash working capital: |
|
|
|
|
Government receivable |
(8,674) |
|
4,166 |
|
Accounts payable and accrued liabilities |
(334,236) |
|
(2,897,287) |
|
Accounts receivable and prepaid expenses |
38,539 |
|
1,449,931 |
|
Advance from and amounts owing to license partners |
(590,482) |
|
357,449 |
|
Cash flow from operating activities |
(4,567,536) |
|
(3,536,375) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from investing activities |
|
|
|
|
Short-term investments |
(61,893) |
|
- |
|
Acquisition of interest in property |
(150,000) |
|
- |
|
Acquisition of Orinduik BV (*) |
- |
|
(700,000) |
|
Proceeds from Block 3B/4B farm-out |
7,834,866 |
|
2,500,000 |
|
Cash flow from investing activities |
7,622,973 |
|
1,800,000 |
|
|
|
|
|
|
|
|
|
|
|
Cash flow from financing activities |
- |
|
- |
|
|
|
|
|
|
Increase (decrease) in cash and cash equivalents |
3,055,437 |
|
(1,736,375) |
|
Foreign exchange differences |
5,359 |
|
(183,996) |
|
Cash and cash equivalents, beginning of period |
2,967,005 |
|
4,110,734 |
|
|
|
|
|
|
Cash and cash equivalents, end of period |
6,027,801 |
|
2,190,363 |
Notes to the Financial Statements
Basis of Preparation
The consolidated financial statements of the Company have been prepared on a historical cost basis with the exception of certain financial instruments that are measured at fair value. Historical cost is generally based on the fair value of the consideration given in exchange for assets.
Summary of Significant Accounting Policies
Critical accounting estimates
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized prospectively from the period in which the estimates are revised. The following are the key estimate and assumption uncertainties considered by management.
**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 Charles Denley-Myerson |
|
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 5.25% 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.