TSX-V : EOG   Last Price: 0.54   Change: -0.01   Volume: 24000   Details (+)


Final Results for the Three and Six Months Ended 30 September 2017 and Business Update

November 23, 2017

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 results for the three and six months ended 30 September 2017.

Operational Highlights:

  • Together with its operating partner, Tullow Oil (“Tullow”), the Company has completed a circa 2,550 km2 3D seismic survey on the 1,800 km2 Orinduik Block, offshore Guyana, almost two years ahead of schedule, thereby de-risking the existing defined targets located up dip and just a few kilometers from Exxon’s recent Liza, Snoek, Turbot-1, and Payara discoveries on the Stabroek block containing oil reserves estimated at 2.8 billion barrels of recoverable oil.  Processing has commenced in October 2017 is expected to be completed in January 2018.
  • The Company, as operator of the Cooper Block, offshore Namibia, has published a public notice for Environmental Clearance Certificate (ECC) for drilling an exploration well on the Block, a key clearance required ahead of potential drilling on the Block.

Financial Highlights:

  • Through the Company’s subsidiary, Eco Atlantic (Guyana) Inc. (“Eco Guyana”), we entered into an option agreement that provides Total E&P Activités Pétrolières, (a wholly owned subsidiary of Total SA) (“Total”), with an option to acquire a 25% Working Interest in the Orinduik Block. Total paid US$ 1 million for the option. Total has 120 days from the date of receipt of the 3D seismic data to exercise the option in return for a US$12.5 million cash payment to Eco Guyana.
  • On November 13, 2017, the Company entered into an agreement with Africa Oil Corp (“AOC”) whereby AOC subscribed for 29,200,000 shares in the Company for gross proceeds of $14 million.
  • The Company and AOC also entered into a Strategic Alliance Agreement to identify new projects to add to the Company’s portfolio.  The completion of the subscription, share issuance and transfer of funds was completed on November 16, 2017.
  • Current cash on hand of approximately CAD$16.4 million.

Gadi Levin, Finance Director of Eco Atlantic, commented:

“We are pleased to present our financial report for the three and six months ended 30 September 2017. The money raised in our AIM IPO back in February 2017, was put into work on our licenses across Namibia and Guyana during the six months ended September 2017.  Following the completion of the expanded 2,550km2 3D seismic survey on our Orinduik Block, we were able to secure US$ 1 million from Total as payment for an option to farm into our Orinduik Block. Earlier this month, we completed a CAD$14 million private placement by Africa Oil.  These two transactions, with two such experienced industry leaders, have transformed the Company’s balance sheet, and we are now well positioned to continue to advance all of our exiting licenses, whilst perusing new opportunities in frontier areas.  Total’s potential exercise of its option to farm in to our Orinduik block will potentially add an additional US$12.5m to our balance sheet, which would bring our treasury to approximately CAD$30 million. We also continue to invest more time in the UK strengthening our investors’ base and the market at large.”

The Company’s unaudited financial results for the three and six months ended 30 September 2017, together with Management’s Discussion and Analysis as at 30 September 2017, are available to download on the Company’s website at www.ecooilandgas.com and on Sedar at www.sedar.com.

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

Peterhouse Corporate Finance (Joint Broker) +44 (0) 20 7469 0930

Eran Zucker
Duncan Vasey
Lucy Williams

Blytheweigh +44 (0) 207 138 3553
Nick Elwes  

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.

About Eco Atlantic
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 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, recently discovered by ExxonMobil and Hess, which is estimated to contain as much as 1.4 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 25,000 km2 with over 2.3 billion barrels of prospective P50 resources in the Wallis and Lüderitz Basins.  These four licences, Cooper, Guy, Sharon and Tamar are being developed alongside partners, which include Tullow Oil, AziNam and NAMCOR.  Significant 3D and 2D surveys and interpretation have been completed with drilling preparations expected to begin in 2018.

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