Eco Atlantic Logs Net Loss for Q2 as Farm-Outs Continue

Eco (Atlantic) Oil & Gas Ltd. has reported a net loss of $1.13 million for the three months ended June 30, 2024. According to its latest financial report, the company had cash and cash equivalents of $1.185 million and no debt as of 30 June 2024.

"We continued to make significant progress across our asset base during the period. On Block 3B/4B, we announced the completion of Eco's farm-out agreement with TotalEnergies and QatarEnergy, which will see Eco receiving US$8.3 million now and an additional $11.5m in the future while maintaining a material fully carried interest in the Block”, Gil Holzman, President and Chief Executive Officer of Eco Atlantic, said.

"We also announced Eco's transaction with AOI, where the Company sold a 1 percent interest in Block 3B/4B in exchange for cancellation of all of Africa Oil's shares and warrants in Eco amount [sic] to 15 percent of the company. Eco continues to possess significant upside potential and exposure to assets in the Orange Basin offshore South Africa, a hugely exciting region for hydrocarbon prospectivity”, Holzman said.

Meanwhile, Eco Atlantic has farmed into Block 1 in the South Africa Orange Basin, securing a 75 percent working interest and becoming the operator.

The company is completing a multi-block farm-out in Namibia for all or part of Eco's four offshore Petroleum Exploration Licenses: 97, 98, 99, and 100.  An active farm-out process continues for the offshore Orinduik Block in Guyana.  

"Our active farm-out processes in both Namibia and Guyana have seen Eco actively engaged with a number of potential high-caliber partners as we work to monetize these licenses as fast as is practically possible for the benefit of all involved”, Holzman said.

To contact the author, email andreson.n.paul@gmail.com