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Eco (Atlantic) O&G (ECO)

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Wednesday 29 August, 2018

Eco (Atlantic) O&G

First Quarter Results and Operational Update

RNS Number : 0618Z
Eco (Atlantic) Oil and Gas Ltd.
29 August 2018
 

29 August 2018

 

ECO (ATLANTIC) OIL & GAS LTD.

("Eco", "Eco Atlantic", "Company" or, together with its subsidiaries, the "Group")

 

First Quarter Results for the three months ended 30 June 2018 and Operational Update


Eco (Atlantic) Oil & Gas Ltd. (AIM: ECO, TSX-V: EOG), the oil and gas exploration company with licences in highly prospective regions in South America and Africa, is pleased to announce its unaudited results for the three months ended 30 June 2018 and provide a corporate and operational update.

 

Corporate Highlights:

·     Guyana

Eco has worked closely with the Tullow team through the processing and interpretation of the Orinduik survey, and as each batch of data has been delivered to Eco the data sets have been sent to Total.  We  anticipate delivery of the final data sets to Total in September 2018, which will trigger the commencement of the 120-day exercise period under the terms of the Total option. Once the final report has been provided to Total, an update will be provided to shareholders.

Gustavson Associates is currently in the process of preparing a 51-101 compliant Competent Person's Report ("CPR") for the Orinduik Block, based on the recent 3D interpretation. Eco expects that the CPR will be finalised during September 2018.

·     Namibia

The Company was granted a one-year extension to the First Renewal Exploration Period for all of its Namibia Licenses to March 2019 by the Namibia Ministry of Mines and Energy. Each license will then enter the Second Renewal Period, which in turn has a two-year exploration phase which can be extended by a third year at the discretion of the Ministry.

The Company continues to monitor developments in this region, specifically the results of the two wells which are scheduled to be drilled during Q3 and Q4 2018 on PEL 37 (Tullow Oil) and PEL 71 (Chariot Oil and Gas) in the Walvis Basin. The results of these wells are expected to add a significant amount of information to the overall understanding of the petroleum systems in the Basin, including the blocks held by the Company.

·     New Ventures

In line with the Company's strategy, Eco is actively identifying, evaluating and negotiating additional upstream project opportunities.

·     Financial highlights

The Company ended the quarter with cash and cash equivalent of CAD$13.0 million, total assets of CAD$15.4 million, total liabilities of CAD$226 thousand and total equity of CAD$15.1 million

 

 

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

"During the last three months we have focused on completing our careful interpretation of the Orinduik data set and will shortly be issuing the final report to Total that moves us one step closer to triggering the exercise period for their option to farm into 25% of our Orinduik Block stake  which will add USD$12.5 million to our cash reserves if exercised. We continue to receive very interesting findings as our 3D interpretation progresses in Guyana, and, coupled with the recent additional Exxon discoveries in the adjacent Block, our partners continue to make excellent progress on the pre-drilling engineering and resource evaluation.

"Similarly, we have spent the last quarter advancing our Namibian assets, including the extension of the current exploration period across all of our licences through to March 2019, the beginning of the second two year Renewal Period. We have also been identifying and evaluating new opportunities in other frontier regions."

 

The Company's unaudited financial results for three months ended 30 June 2018, together with Management's Discussion and Analysis as at 30 June 2018, 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 Condensed Consolidated Interim Financial Statements (Unaudited). All amounts are in Canadian Dollars, unless otherwise stated.

 

Balance Sheet

          

June 30,


March 31,

2018

2018


Unaudited


Assets




Current assets




Cash and cash equivalents

12,972,970


14,316,042

Short-term investments

74,818


74,818

Government receivable

19,768


23,626

Accounts receivable and prepaid expenses

806,960


832,322


13,874,516


15,246,808





    Petroleum and natural gas licenses

1,489,971


1,489,971





Total Assets

15,364,487


16,736,779





Liabilities




Current liabilities

Accounts payable and accrued liabilities

169,363


                                  521,537

Advances from and amounts owing to license partners, net

56,708


                                  209,487


226,071


731,024

Equity




Share capital

44,952,511


43,813,254

Shares to be issued

                                                   -  


1,139,257

Restricted Share Units reserve

70,393


70,393

Warrants

167,931


167,931

Stock options

2,980,854


2,979,367

Non-controlling interest

(57,076)


(55,065)

Accumulated deficit

(32,976,197)


(32,109,382)





Total Equity

15,138,416


16,005,755





Total Liabilities and Equity

                       15,364,487


                             16,736,779

 

 

Income Statement


Three months ended

June 30,


2018


2017


Unaudited

Revenue




Interest income

                         8,843


                          6,503


                         8,843


                          6,503

Operating expenses:




Compensation costs

                     233,366


                      191,147

Professional fees

                       69,416


                        94,102

Operating costs

                     468,500


                      571,336

General and administrative costs

                     291,719


                      172,575

Share-based compensation

                         1,487


                    1,078,398

Foreign exchange (income) loss

                    (186,819)


                        20,928





Total expenses

                     877,669


                    2,128,486





Net loss and comprehensive loss

                    (868,826)


                  (2,121,983)





Net comprehensive loss attributed to:




Equity holders of the parent

                    (866,815)


                  (2,121,983)

Non-controlling interests

                        (2,011)


                              -  


                    (868,826)


                  (2,121,983)





Basic and diluted net loss per share attributable to equity holders of the parent

                          (0.01)


                          (0.02)





Weighted average number of ordinary shares used in computing basic and diluted net loss per share

              157,676,832


                118,659,609

 

 

Cash Flow Statement

 

 


Three months ended


June 30,

2018


2017


Unaudited

Cash flow from operating activities




Net loss

                     (868,826)


                (2,121,983)

Items not affecting cash:




   Share-based compensation

1,487


1,078,398

Changes in non‑cash working capital:




   Government receivable

3,858


3,158

   Accounts payable and accrued liabilities

(352,174)


(153,687)

   Accounts receivable and prepaid expenses

25,362


143,274

   Advance from and amounts owing to license
       partners

                     (152,779)


(44,791)


(1,343,072)


(1,095,631)









Decrease in cash and cash equivalents

(1,343,072)


(1,095,631)

Cash and cash equivalents, beginning of period

14,316,042


6,088,567





Cash and cash equivalents, end of period

                 12,972,970


                 4,992,936

 

Selected Notes to the Condensed Consolidated Interim Financial Statements (Unaudited)

 

1.   Nature of Operations

The Company's business is to identify, acquire, explore and develop petroleum, natural gas, and shale gas properties. The Company primarily operates in the Co-Operative Republic of Guyana ("Guyana") and the Republic of Namibia ("Namibia").  The head office of the Company is located at 181 Bay Street, Suite 320, Toronto, ON, Canada, M5J 2T3.

 

As used herein, the term "Company" means individually and collectively, as the context may require, Eco (Atlantic) Oil and Gas Ltd. and its subsidiaries.

 

These consolidated financial statements were approved by the Board of Directors of the Company on August 28, 2018.

 

 

 

**ENDS**

 

For more information, please visit www.ecooilandgas.com or contact the following:

 

Eco Atlantic Oil and Gas

+1 (416) 250 1955

Gil Holzman, CEO

Colin Kinley, COO

Alan Friedman, VP

 

 

 

 

Strand Hanson Limited (Financial & Nominated Adviser)

 

+44 (0) 20 7409 3494

James Harris

Rory Murphy

James Bellman

 

 

Brandon Hill Capital Limited (Joint Broker)

+44 (0) 20 3463 5000

Oliver Stansfield

Jonathan Evans

Robert Beenstock

 

 

Pareto Securities Limited (Joint Broker)

+44 (0) 20 7786 4370

Soren Clausen

+44 (0) 20 7786 4382

Davide Finelli

Matilda Mäkitalo

+44 (0) 20 7786 4398

+44 (0) 20 7786 4375

 

 

 

 

 

 

Blytheweigh (PR)

+44 (0) 20 7138 3204

Tim Blythe

Simon Woods

 

 

 

 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014.

 

 

 

Notes to editors

Eco Atlantic is a TSX-V and AIM listed Oil & Gas exploration and production Company with interests in Guyana and Namibia where significant oil discoveries have been made.

The Group aims to deliver material value for its stakeholders through oil exploration, appraisal and development activities in stable emerging markets, in partnership with major oil companies, including Tullow, ONGC, Total (optional) and AziNam.

In Guyana, Eco Guyana holds a 40%(1) working interest alongside Tullow Oil (60%) in the 1,800 km2 Orinduik Block in the shallow water of the prospective Suriname Guyana basin. The Orinduik Block is adjacent and updip to the deep-water Liza Field and Snoek, Payara, Pacora, Turbot and Longtail Discoveries, recently discovered by ExxonMobil and Hess, which is estimated to contain in excess of 3.7 billion barrels of oil equivalent, making it one of a handful of billion-barrel discoveries in the last half-decade.

In Namibia, the Company holds interests in four offshore petroleum licences totaling approximately 25,000km2 with over 2.3 billion barrels of prospective P50 resources in the Walvis and Lüderitz Basins.  These four licences, Cooper, Guy, Sharon and Tamar are being developed alongside partners, which include Tullow Oil, AziNam and NAMCOR.  Drilling activity in Namibia is set to gather pace in 2018 and 2019, with a few wells confirmed to be spud on Tullow PEL 037 and Chariot Central Blocks. The Company has applied for a drilling permit on its Cooper (Operator) Block.

(1) Total E&P Activités Pétrolières, (a wholly owned subsidiary of Total SA) ("Total") has purchased an option from Eco to acquire a 25% Working Interest in the Orinduik Block for and additional US$12.5 million.

 


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.
 
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