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.
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.
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."