Last checked at 29 Aug 2018 07:00
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
o 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.
o 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
o 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.
o 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
o In line with the Company's strategy, Eco is actively identifying, evaluating and negotiating additional upstream project opportunities.
· Financial highlights
o 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 | Audited | ||
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 |
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Strand Hanson Limited (Financial & Nominated Adviser) |
+44 (0) 20 7409 3494 |
James Harris Rory Murphy James Bellman
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Brandon Hill Capital Limited (Joint Broker) | +44 (0) 20 3463 5000 |
Oliver Stansfield Jonathan Evans Robert Beenstock
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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 |
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Blytheweigh (PR) | +44 (0) 20 7138 3204 |
Tim Blythe Simon Woods
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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.