HomeOil & GasEco (Atlantic) Oil and Gas Ltd. Announces Unaudited Results for 3 Months...

Eco (Atlantic) Oil and Gas Ltd. Announces Unaudited Results for 3 Months Ended 30 June 2022

Published on

Notification of Investor Presentations

TORONTO, ON / ACCESSWIRE / August 25, 2022 / Eco (Atlantic) Oil & Gas Ltd. (AIM:ECO)(TSXV:EOG), (“Eco,” “Eco Atlantic,” “Company,” or together with its subsidiaries, the “Group”), the oil and gas exploration company focused on the offshore Atlantic Margins, is pleased to announce its results for the three months ended 30 June 2022. In addition, the Company is notifying the market of an investor event to be held on 19 September 2022, details of which can be seen below. Today’s announcement follows the recently published Full Year Results and Operational Update announced on 1 August 2022.

Q1 Highlights:

Financials (as at 30 June 2022)

  • The Company had cash and cash equivalents of US$38,753,695, and no debt.
  • The Company had total assets of US$79.8 million, total liabilities of US$5.9 million and total equity of US$73.9 million.

Corporate:

  • Two successful equity fundraises raising combined gross proceeds of US$37.8 million to fund its ongoing workstreams, including the upcoming drilling of the Gazania-1 well on Block 2B, offshore South Africa, and further G&G work across the entire portfolio.
  • Completion of acquisition of 100% of Azinam Group Limited (“Azinam”), including Azinam’s entire offshore asset portfolio in Orange Basin South Africa and Namibia, in return for a 16.5% equity stake in the enlarged Group.
  • Acquisition, subject to completion, of an additional 6.25% Participating Interest in Block 3B/4B, Orange Basin offshore South Africa, for a consideration of US$10 million.

Operations:

South Africa

  • Post period end, the Island Innovator rig, owned by Island Drilling Company AS, was mobilised ahead of the spud of the Gazania-1 well on Block 2B, in Orange Basin South Africa.
  • The rig is currently offshore Spain heading to Las Palmas for refuelling and expected to arrive at the drilling location by the end of September 2022, subject to weather conditions. The Gazania-1 prospect is targeting a 300 million barrels light oil resource.

Namibia

  • Following recent significant hydrocarbon discoveries offshore Namibia, Eco continues to assess options for progressing exploration and commercial activity on its acreage.
  • Post period end, Eco announced Joint Operating Agreements with NAMCOR, the National Petroleum Corporation of Namibia, regarding to the Company’s four operated offshore Petroleum Licence (“PEL”) interests in Namibia, being PEL 97 (Cooper), PEL 98 (Sharon), PEL 99 (Guy), and PEL 100 (Tamar).

Guyana

  • Eco 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.

Investor Evening – London

Eco would like to invite current and potential shareholders to an early evening face-to-face presentation by management, followed by a Q&A session, on Monday, 19 September 2022. Drinks and refreshments will be served afterwards. The event will take place at The Brewery, 52 Chiswell Street, London EC1Y 4SD, at 5.30pm for a 6:00pm start. Those wishing to attend are requested to register by emailing: [email protected]

Investor Meet Company Presentation – Live Webinar

Eco is pleased to announce that Gil Holzman and Colin Kinley will provide a live presentation relating to Q1 Results and upcoming South Africa Exploration Activities via the Investor Meet Company platform on 20 September 2022 at 3:00pm BST.

The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 9am the day before the meeting or at any time during the live presentation.

Investors can sign up to Investor Meet Company for free and add to meet ECO (ATLANTIC) OIL & GAS LTD via:

https://www.investormeetcompany.com/eco-atlantic-oil-gas-ltd/register-investor

Investors who already follow ECO (ATLANTIC) OIL & GAS LTD on the Investor Meet Company platform will automatically be invited.

Gil Holzman, President and Chief Executive Officer of Eco Atlantic, commented:

“Today’s update follows the detailed corporate and operations update provided earlier this month. However, our Q1 results serve as an important opportunity to remind investors of the significant near-term catalysts that we see across our entire Atlantic Margin portfolio, with near-term high impact drilling offshore South Africa, significant interest in our Namibian portfolio and plans taking shape with regards to our strategy for value accretion offshore Guyana, the outlook has never been more positive.

“We are very pleased to invite current and potential investors to meet with our Board and management team at a shareholder event on 19 September 2022 in London and for those not able to attend in person we hope you can make the live webinar on 20 September 2022. We look forward to updating investors on our plans and answering any questions. We would encourage those who are able to do so to attend and learn more about our highly strategic acreage across the world’s most attractive exploration hot spots.”

The Company’s unaudited financial results for the three months ended 30 June 2022, together with Management’s Discussion and Analysis as at 30 June 2022, are available to 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

June 30, March 31,
2022
2022
(Unaudited) (Audited)
Assets
Current assets
Cash and cash equivalents
38,753,695 3,438,834
Short-term investments
52,618 52,618
Government receivable
53,261 27,487
Amounts owing by license partners, net
324,388
Accounts receivable and prepaid expenses
229,749 257,911
Assets held for sale
1,983,419 2,061,734
41,397,130 5,838,584
Investment in associate
9,184,859 9,277,162
Petroleum and natural gas licenses
29,253,034 30,753,034
Total Assets
79,835,023 45,868,780
Liabilities
Current liabilities
Accounts payable and accrued liabilities
3,441,593 1,931,823
Current liabilities related to assets held for sale
597,971 473,254
Warrant liability
1,810,778 3,241,762
Total current liabilities
5,850,342 5,646,839
Total liabilities
5,850,342 5,646,839
Equity
Share capital
112,855,965 63,141,609
Shares to be issued
20,766,996
Restricted Share Units reserve
569,919 267,669
Warrants
14,778,272 7,806,000
Stock options
1,325,230 958,056
Foreign currency translation reserve
(1,421,357) (1,309,727)
Accumulated deficit
(54,123,348) (51,408,662)
Total Equity
73,984,681 40,221,941
Total Liabilities and Equity
79,835,023 45,868,780

Income Statement

Three months ended
June 30,
2022
2021
(Unaudited)
(Unaudited)
Revenue
Interest income
20,127
4,524
20,127
4,524
Operating expenses:
Compensation costs
269,309
203,760
Professional fees
219,685
38,959
Operating costs
1,943,451
382,865
General and administrative costs
257,290
108,397
Share-based compensation
1,001,219
5,822
Interest expense
3,404
Foreign exchange loss (gain)
284,427
(45,931)
Total operating expenses
3,975,381
697,276
Operating loss
(3,955,254)
(692,752)
Fair value change in warrant liability
1,430,984
Share of losses of company accounted for at equity
(92,303)
Net loss for the period from continuing operations
(2,616,573)
(692,752)
Loss from discontinued operations, after-tax
(98,113)
(132,872)
Net loss for the period
(2,714,686)
(825,624)
Foreign currency translation adjustment
(111,630)
13,249
Comprehensive loss for the period
(2,826,316)
(812,375)
Net loss for the period attributed to:
Equity holders of the parent
(2,714,686)
(804,617)
Non-controlling interests
(21,007)
(2,714,686)
(825,624)
Basic and diluted net loss per share attributable to equity holders of the parent
(0.009)
(0.004)
Weighted average number of ordinary shares used in computing basic and diluted net loss per share
293,654,835
184,697,723

Cash Flow Statement

Three months ended
June 30,
2022 2021
(Unaudited) (Unaudited)
Cash flow from operating activities
Net loss from continuing operations
(2,616,573) (692,752)
Net loss from discontinued operations
(98,113) (132,872)
Items not affecting cash:
Share-based compensation
1,001,219 5,822
Depreciation and amortization
19,169
Accrued interest
3,404
Revaluation of warrant liability
(1,430,984)
Share of losses of companies accounted for at equity
92,303
Changes in non-cash working capital:
Government receivable
(25,774) 20,614
Accounts payable and accrued liabilities
1,681,064 (116,781)
Accounts receivable and prepaid expenses
28,162 (13,152)
Receipt on account of shares
1,940,021
Reallocation to discontinued operations cashflows
(171,294)
Net change in non-cash working capital items relating to discontinued operations
203,032
Advance from and amounts owing to license partners
1,175,612 5,863
(161,346) 1,039,336
Cash flow from investing activities
Investment in associate
(10,000,000)
Short-term investments
1,500,022
(8,499,978)
Cash flow from financing activities
Proceeds from private placements, net
35,587,837
35,587,837
Increase (decrease) in cash and cash equivalents
35,426,491 (7,460,642)
Foreign exchange differences
(111,630) 8,313
Cash and cash equivalents, beginning of period
3,438,834 11,807,309
Cash and cash equivalents, end of period
38,753,695 4,354,980

Notes to the Financial Statements

Basis of Preparation

The Condensed Interim 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.

**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, Head of Corporate Sustainability

+44(0)781 729 5070

Strand Hanson Limited (Financial & Nominated Adviser)

+44 (0) 20 7409 3494

James Harris
James Bellman

Berenberg (Broker)

+44 (0) 20 3207 7800

Matthew Armitt
Detlir Elezi

Echelon Capital (Financial Adviser N. America Markets)

Ryan Mooney
Simon Akit

+1 (403) 606 4852
+1 (416) 8497776

Celicourt (PR)

+44 (0) 20 8434 2754

Mark Antelme
Jimmy Lea

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018 (as amended).

Notes to editors:

About Eco Atlantic:

Eco Atlantic is a TSX-V and AIM-quoted Atlantic Margin-focused oil & 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 holds a 15% Working Interest in the 1,800 km2 Orinduik Block Operated by Tullow Oil. 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 is Operator and holds a 50% working interest in Block 2B and a 20% Working Interest (to be increased to a 26.25% Working Interest, subject to Completion of the Acquisition announced 27 June 2022) in Blocks 3B/4B operated by Africa Oil Corp., totalling some 20,643 km2.

Cautionary Notes:

This news release contains certain “forward-looking statements”, including, without limitation, statements containing the words “will”, “may”, “expects”, “intends”, “anticipates” and other similar expressions which constitute “forward-looking information” within the meaning of applicable securities laws. Forward-looking statements reflect the Company’s current expectations, assumptions, and beliefs, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations.

Important factors that could cause actual results to differ materially from expectations include, but are not limited to, general economic and market factors, competition, the effect of the global pandemic and consequent economic disruption, and the factors detailed in the Company’s ongoing filings with the securities regulatory authorities, available at www.sedar.com. Although forward-looking statements contained herein are based on what management considers to be reasonable assumptions based on currently available information, there can be no assurance that actual events, performance or results will be consistent with these forward-looking statements, and our assumptions may prove to be incorrect. Readers are cautioned not to place undue reliance on these forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise, except as required by applicable laws.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.

SOURCE: Eco (Atlantic) Oil and Gas Ltd.

View source version on accesswire.com:
https://www.accesswire.com/713418/Eco-Atlantic-Oil-and-Gas-Ltd-Announces-Unaudited-Results-for-3-Months-Ended-30-June-2022

img Eco (Atlantic) Oil and Gas Ltd. Announces Unaudited Results for 3 Months Ended 30 June 2022

Featured image: Megapixl © Studioceja

Disclaimer

Latest News

Crew Energy To Participate in the Lytham Partners Fall 2022 Investor Conference

CALGARY, Alberta, Sept. 26, 2022 (GLOBE NEWSWIRE) -- Crew...

VAALCO Energy Announces Approval of Plan of Development for Discovery on Block P in Equatorial Guinea

HOUSTON, Sept. 26, 2022 (GLOBE NEWSWIRE) -- VAALCO Energy,...

Green Plains Announces Executive Leadership Appointments

OMAHA, Neb., Sept. 22, 2022 (GLOBE NEWSWIRE) -- Green...

More like this

SURGE ENERGY INC. ANNOUNCES NOTICE OF REDEMPTION OF 5.75% CONVERTIBLE DEBENTURES

SURGE ENERGY INC. ANNOUNCES NOTICE OF REDEMPTION OF...

Saturn Oil & Gas Inc. Announces OTCQX Trading and Participation in the International Investment Forum

Calgary, Alberta--(Newsfile Corp. - September 22, 2022) - Saturn Oil & Gas Inc. (TSXV:...

Verde Bio Holdings Announces Opportunistic Divestiture of Select Properties

FRISCO, TX, Sept. 21, 2022 (GLOBE NEWSWIRE) -- via ...

Royal Helium Samples 81.3 Mg/L Lithium in Brine at Climax-2

Royal Helium Samples 81.3 Mg/L Lithium in Brine...

Tethys Petroleum Press Release: Annual General Meeting Results

Grand Cayman, Cayman Islands--(Newsfile Corp. - September 16, 2022) - Tethys Petroleum Limited (TSXV:...