Eco (Atlantic) Oil and Gas Ltd. Market Update (3158I)
01 Aprile 2020 - 8:00AM
UK Regulatory
TIDMECO
RNS Number : 3158I
Eco (Atlantic) Oil and Gas Ltd.
01 April 2020
1 April 2020
ECO (ATLANTIC) OIL & GAS LTD.
("Eco," "Eco Atlantic," "Company," or together with its
subsidiaries, the "Group")
Market 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, provides an update to the
market.
In light of the COVID-19 pandemic, Eco continues to take all of
the recommended measures to protect the welfare of its personnel.
Ensuring the safety of employees remains a major priority for the
business and the Company has taken steps to secure their health,
safety and well-being at this difficult time. As such, Eco has
curtailed all travel and has installed a Company-wide work from
home policy until such time as Government restrictions are
lifted.
In parallel, given the recent lower oil price environment and
current market conditions, since February 2020, the Company has
undertaken a strict cost cutting programme across all aspects of
the business, aside from the necessary maintenance of certain
operations. These include termination of non-core services and
cessation of business related travel. In addition, the Board and
management are voluntarily taking pay cuts of up to 40% starting in
April 2020 and this will be kept under review on a monthly basis
thereafter.
The Company continues to monitor its operating budget for 2020
and to work closely with its partners to discuss and plan next
steps. To date, Eco has met all of its work commitments for 2020
under the various petroleum agreements offshore Guyana and Namibia,
and thus only minimal costs are expected to be incurred over the
remainder of the year.
As at 31 March 2020, the Company continues to benefit from its
strong balance sheet, with cash and cash equivalents of CAD$26.5
million (US$18.8 million) and zero debt. Eco remains fully funded
for its share of further appraisal and exploration drilling at
Orinduik block offshore Guyana, up to US$120 million (gross). In
light of the cost cutting measures described above, preserving the
Company's significant cash balance, the Board believes Eco will be
in a robust position to progress its exploration strategy when
market conditions improve and operations are able to resume.
The Company will continue to update the market on developments
as appropriate.
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
Alice Carroll, Head of Marketing and IR +44(0)781 729 5070
Strand Hanson Limited (Financial & Nominated
Adviser) +44 (0) 20 7409 3494
James Harris
James Bellman
Berenberg (Broker) +44 (0) 20 3207 7800
Matthew Armitt
Detlir Elezi
Celicourt (PR) +44 (0) 20 8434 2754
Mark Antelme
Jimmy Lea
Hannam & Partners (Research Advisor)
Neil Passmore
Hamish Clegg +44 (0) 20 7905 8500
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
About Eco Atlantic:
Eco Atlantic is a TSX-V and AIM quoted 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 Stabroek Block, led by
the ExxonMobil consortium, on which sixteen discoveries have been
announced and over 8 Billion BOE of oil equivalent recoverable
resources are estimated. First oil production is expected from the
deep-water Liza Field in 2020.
Jethro-1 was the first major oil discovery on Orinduik Block.
The Jethro-1 encountered 180.5 feet (55 meters) of net high-quality
oil pay in excellent Lower Tertiary sandstone reservoirs which
further proves recoverable oil resources. Joe-1 is the second
discovery on the Orinduik Block and comprises high quality
oil-bearing sandstone reservoir with a high porosity of Upper
Tertiary age. The Joe-1 well encountered 52 feet (16 meters) of
continuous thick sandstone which further proves the presence of
recoverable oil resources.
In Namibia, the Company holds interests in four offshore
petroleum licences totalling approximately 25,000km(2) with over
2.3bboe 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
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