Eco (Atlantic) Oil & Gas Ltd (AIM: ECO, TSX-V: EOG) CEO Gil Holzman emphasized notable progress as the company released its financial results for the three months ending June 30.
“In Namibia and Guyana, our active farm-out processes have involved discussions with several potential high-caliber partners. We are focused on monetizing these licenses as swiftly as possible for the benefit of all stakeholders,” Holzman stated in the results announcement.
(Dr Tshepo Mokoka, Petroleum Agency SA (PASA) CEO, and Gil Holzman, Eco Atlantic CEO)
“We look forward to keeping our stakeholders informed of significant developments in the coming months.”
As of the end of June 2024, the company held $1.185 million in cash and cash equivalents, with no debt. Total assets amounted to $29.65 million, while total liabilities were $0.791 million.
Following the recent farm-down of a 13.75% participating interest in Block 3B/4B offshore South Africa, Eco anticipates increasing its cash reserves to over $9 million, expected to be received in early September 2024.
Eco has made progress across its portfolio. In South Africa, the company completed several strategic transactions, including acquiring a 75% working interest in Block 1 and selling its stake in Block 3B/4B. It also relinquished its 50% working interest in Block 2B.
In Namibia, Eco is advancing a multi-block farm-out process across its offshore licenses, while in Guyana, the company remains in farm-out discussions for the Orinduik Block.
Holzman stated: “We have continued to achieve significant progress across our asset base during this period.
“On Block 3B/4B, we completed Eco’s farm-out agreement with TotalEnergies and QatarEnergy, resulting in a US$8.3 million payment to Eco while retaining a significant interest in the Block.
“We also finalized a transaction with AOI, where the company sold a 1% interest in Block 3B/4B in exchange for the cancellation of all of Africa Oil’s shares and warrants in Eco, valued at C$ 11.5 million.
“Eco continues to have substantial upside potential and exposure to assets offshore South Africa and in the Orange Basin, two highly promising regions for hydrocarbon exploration.”
