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 and nine months ended 31 December 2017.
- 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 (the “Total Option”). Total paid US$ 1 million for the option. Total has 120 days from the date of receipt of the processed 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 CAD$14 million (the “Subscription”). The completion of the Subscription, associated share issuance and transfer of funds was completed on November 16, 2017.
- The Company and AOC also entered into a Strategic Alliance Agreement to jointly identify new assets to add to the Company's portfolio.
- Cash on hand as at 31 December 2017 of approximately CAD$14.4 million. Current cash on hand of approximately CAD$14.7 million.
- On 22 February 2018, The Company was recognised as a 2018 TSX Venture 50™ company, an annual ranking of top-performing companies on the TSX Venture Exchange (the “TSX-V”) over the last year. The TSX Venture 50™ comprise the top 10 companies listed on the TSX Venture Exchange in each of the five major industry sectors – mining, oil & gas, clean technology & life sciences, diversified industries and technology – based on a ranking formula with equal weighting given to return on investment, market capitalisation growth, trading volume and analyst coverage. All data was as of 31 December 2017.
- Following the completion of a circa 2,550 km2 3D seismic survey on the 1,800 km2 Orinduik Block, offshore Guyana, and the progression of the processing during January and February 2018, the first batch of processed data has been sent to Total. The remaining data will be provided to Total in due course triggering the commencement of up to 120 review period under the terms of the total Option and an update will be provided to shareholders at such time.
- Eco Atlantic and Tullow Oil (“Tullow”) are interpreting the data in order to identify the drilling targets and potential additional leads on the Orinduik Block.
- 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.
- On 21 November 2017, the Company announced that India's ONGC Videsh Vankorneft Pte. Ltd. has agreed to acquire, is acquiring a 15% working interest in the Cooper Block from Tullow.
- Tullow Oil and Chariot Oil & Gas Limited officially confirmed drilling of their Namibia Walvis Basin Blocks directly adjacent to The Company's Cooper, Tamar, and Sharon Blocks in H2 2018.
Gadi Levin, Finance Director of Eco Atlantic, commented:
“We are proud to present our financial report for the three and nine months ended 31 December 2017. Our balance sheet remains very strong, following our AIM IPO back in February 2017, the receipt of US$ 1 million from Total as payment for an option to farm into our Orinduik Block, and the completion of the CAD$14 million private placement with Africa Oil Corp. These transactions, together with the exercise of options and broker warrants, which injected a further CAD$840,000 into our cash reserves, leave us in a robust financial position. We are leveraging these cash reserves to continue to advance all of our exiting licenses, whilst assessing new opportunities in frontier regions, in line with our strategic alliance with Africa Oil Corp. giving the area's high prospectivity and large discoveries, we remain confident that Total will exercise its option to farm in to our Orinduik block which could potentially add an additional US$12.5m to our balance sheet.”
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