TIDMECO
RNS Number : 8305I
Eco (Atlantic) Oil and Gas Ltd.
29 November 2018
29 November 2018
ECO (ATLANTIC) OIL & GAS LTD.
("Eco", "Eco Atlantic", "Company" or, together with its
subsidiaries, the "Group")
Unaudited Results for the three and six months ended 30
September 2018 and Business 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
results for the three and six months ended 30 September 2018 and to
provide a corporate and operational update.
Corporate Highlights:
-- Guyana
o Eco announced the filing of a National Instrument 51-101
compliant resource report on the Orinduik Block, offshore Guyana
with 2.9 Billion Barrels of Oil (Equivalent) prospective resource
P50 Best Estimate. The report does not take into account the recent
Exxon Hammerhead 1 discovery.
o On 13 September 2018, Total submitted an official exercise
notice of its option to acquire a 25% working interest in the
Orinduik Block in return for USD 12.5 million cash consideration,
in addition to USD 1.0 million previously received as consideration
for the option.
o On 27 November 2018 (post period end), Eco received the USD
12.5 million and all necessary approvals and documentation to
effect the 25% interest transfer in the Orinduik Block to Total,
and accordingly the transfer to Total has been completed. The
working interests in the Orinduik Block are now Tullow (Operator)
60%, Total 25% and Eco 15%.
-- Namibia
o Eco was granted a one-year extension to the First Renewal
Exploration Period for all of its Namibia Licenses to March 2019 by
the Namibian Ministry of Mines and Energy (the "Ministry"). Each
license will then automatically 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 acquired the remaining 10% of the shares of Pan
Africa Oil Namibia Ltd ("PAO Namibia"). Following completion of the
acquisition, PAO Namibia became a wholly owned subsidiary of the
Company. As a result, Eco's working interest in the Tamar License
(PEL 50) increased to 80% from 72%.
o On 26 October 2018 (post period end), Eco received a formal
notice from Tullow Namibia informing that it has elected not to
enter into the Second Renewal Period for the Cooper (PEL 30)
License. As a result, the Company automatically receives back
Tullow Namibia's 25% working interest. The Company now holds a
57.5% working interest in PEL 30.
o Eco continues to monitor developments in Namibia, specifically
the recent entries by Exxon Mobil and Kosmos Energy, the planned
2019 wells by Total S.A. and Royal Dutch Shell plc, and the results
of the two wells which were drilled on PEL 37 (Tullow Oil) and PEL
71 (Chariot Oil and Gas) in the Walvis Basin.
-- New Ventures
o In line with the Company's strategy, Eco continues to
identify, evaluate and negotiate additional upstream project
opportunities.
-- Financial highlights
o The Company ended the quarter with cash and cash equivalent of
CAD$11.3 million, total assets of CAD$13.7 million, total
liabilities of CAD$0.7 million and total equity of CAD$13.0
million.
o The Company's current cash position is CAD$27.3 million.
Gil Holzman, President and Chief Executive Officer of Eco
Atlantic, commented:
"During the period since 31 March 2018, we have focused on
completing our careful interpretation of the Orinduik 3D seismic
data set which has allowed us to identify multiple drilling
prospects. We are delighted that Total have exercised their option
to farm into 25% of the Orinduik Block, which has added an
additional USD 12.5 million to our cash reserves as of today.
Having Total as a partner in Orinduik is further confirmation of
the great value we see in this asset and our ability to partner
with major international oil companies."
"We have spent the last few months advancing new asset
opportunities in selected regions that fit our model. This included
the extension of the current exploration period across all of our
Namibian licences through to March 2019, the beginning of the
second two-year Renewal Period which has the option to be extended
a further year. Thanks to our own technical team and partners'
work, and developments in the Walvis Basin, our geotechnical
understanding of the depositional environment and specific areas
for hydrocarbon prospectivity has improved. With Tullow's
withdrawal from our Cooper license, and with recent entries into
Namibia by major oil companies, we see an opportunity to bring in
other partners to advance our blocks and we are working towards
this goal."
"Our prime focus currently is to review, design and approve the
drilling programme on our Orinduik Block offshore Guyana, with
Tullow and Total, which we expect to execute during the first half
of 2019. We look forward to keeping the market updated as to our
progress and exact drilling plans."
The Company's unaudited financial results for three months ended
30 September 2018, together with Management's Discussion and
Analysis as at 30 September 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
September March 31,
30,
----------------------------------------------------
2018 2018
---------------------------------------------------- ----------------------------- --------------------------
Unaudited Audited
----------------------------- --------------------------
Assets
Current assets
Cash and cash equivalents 11,329,228 14,316,042
Short-term investments 74,818 74,818
Government receivable 28,131 23,626
Accounts receivable and prepaid expenses 791,909 832,322
---------------------------------------------------- ----------------------------- --------------------------
12,224,086 15,246,808
Petroleum and natural gas licenses 1,489,971 1,489,971
Total Assets 13,714,057 16,736,779
---------------------------------------------------- ----------------------------- --------------------------
Liabilities
Current liabilities
Accounts payable and accrued liabilities 230,243 521,537
Advances from and amounts owing to
license partners, net 494,002 209,487
724,245 731,024
Equity
Share capital 44,952,511 43,813,254
Shares to be issued 249,000 1,139,257
Restricted Share Units reserve 70,393 70,393
Warrants 167,931 167,931
Stock options 2,982,340 2,979,367
Non-controlling interest - (55,065)
Accumulated deficit (35,432,363) (32,109,382)
---------------------------------------------------- ----------------------------- --------------------------
Total Equity 12,989,812 16,005,755
---------------------------------------------------- ----------------------------- --------------------------
Total Liabilities and Equity 13,714,057 16,736,779
---------------------------------------------------- ----------------------------- --------------------------
Income Statement
Three months ended Six months ended
September 30, September 30,
-------------------------------------------- -------------------------------------------------
2018 2017 2018 2017
--------------------- --------------------- ------------------------- ----------------------
Unaudited Unaudited
-------------------------------------------- -------------------------------------------------
Revenue
Income from
option
agreement - 1,248,000 - 1,248,000
Interest income 88,132 27,054 96,975 33,557
--------------------- --------------------- ------------------------- ----------------------
88,132 1,275,054 96,975 1,281,557
Operating expenses:
Compensation
costs 291,575 212,566 524,941 403,713
Professional
fees 77,069 60,739 102,362 154,841
Operating costs 1,293,895 2,437,574 1,762,395 3,008,910
General and
administrative
costs 340,349 291,153 632,068 463,728
Share-based
compensation 1,486 20,006 2,973 1,098,404
Foreign
exchange loss 233,848 91,594 91,152 112,522
Total expenses 2,238,222 3,113,632 3,115,891 5,242,118
Net loss and
comprehensive
loss (2,150,090) (1,838,578) (3,018,916) (3,960,561)
===================== ===================== ========================= ======================
Basic and diluted net
loss
per share attributable
to
equity holders of the
parent (0.01) (0.02) (0.02) (0.03)
===================== ===================== ========================= ======================
Weighted average number
of
ordinary shares used
in computing
basic and diluted net
loss
per share 159,195,217 85,969,461 158,619,131 118,659,609
===================== ===================== ========================= ======================
Cash Flow Statement
Six months ended
September 30,
---------------------------------------
2018 2017
-------------------- -----------------
Unaudited
---------------------------------------
Cash flow from operating activities
Net loss from continued operations (3,018,916) (3,960,561)
Items not affecting cash:
Share-based compensation 2,973 1,098,404
Changes in non--cash working capital:
Government receivable (4,505) 6,596
Accounts payable and accrued liabilities (291,294) (234,875)
Accounts receivable and prepaid expenses 40,413 241,081
Advance from and amounts owing to license
partners 284,515 1,413,855
--------------------------------------------- -------------------- -----------------
(2,986,814) (1,435,500)
--------------------------------------------- -------------------- -----------------
Decrease in cash and cash equivalents (2,986,814) (1,435,500)
Cash and cash equivalents, beginning of
period 14,316,042 6,088,567
--------------------------------------------- -------------------- -----------------
Cash and cash equivalents, end of period 11,329,228 4,653,067
--------------------------------------------- -------------------- -----------------
Selected Notes to the Condensed Consolidated Interim Financial
Statements (Unaudited)
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 November 27, 2018.
1. Basis of Preparation
These condensed consolidated interim financial statements have
been prepared in accordance with International Financial Reporting
Standards ("IFRS") on a going concern basis, which assumes the
realization of assets and liquidation of liabilities in the normal
course of business. In the opinion of management, all adjustments
(consisting of normal recurring accruals) considered necessary for
a fair statement of results in accordance with IFRS have been
included.
2. Subsequent Events
a. On October 5, 2018, 590,000 warrants with an exercise price
of GBP0.16 were exercised for gross proceeds of $159,866
(GBP94,400).
b. On October 26, 2018 the Company announced a formal notice
from Tullow Namibia confirming that it is unable to either enter
into the Second Renewal Period for the Cooper License or to make a
financial commitment to drilling. As a result, the Company will now
receive back Tullow Namibia's Working interest. On completion of
the transfer, the Company will now hold a 57.5% working interest in
the Cooper License.
c. On October 31, 2018 the Company announced that it had
received approval for the transfer of 25% working interest to Total
from the President of Guyana and on November 27, 2018, Total
transferred US$12.5 million to the Company and completed the
transfer.
**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
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
Søren Clausen +44 (0) 20 7786 4382
Davide Finelli +44 (0) 20 7786 4398
Matilda Mäkitalo +44 (0) 20 7786 4375
Blytheweigh (PR) +44 (0) 20 7138 3204
Tim Blythe
Julia Tilley
Jane Lenton
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, Total and Azinam.
In Guyana, Eco Guyana holds a 15% working interest alongside
Total (25%) and Tullow Oil (60%) in the 1,800 km(2) 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, Longtail and Hammerhead
Discoveries, recently discovered by ExxonMobil and Hess, which are
estimated to contain in excess of 4.2 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 totalling approximately 25,000km(2) 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 Azinam and NAMCOR. Eco has
been granted a drilling permit on its Cooper Block (Operator).
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 rns@lseg.com or visit www.rns.com.
END
IR PGGMUGUPRGRR
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