Eco Atlantic Loss Widens

Eco (Atlantic) Oil & Gas Ltd., an exploration company focusing on the offshore Atlantic Margins, has reported a net loss of $1.63 million and $2.76 million for the three and six months ended September 30, 2024, respectively.

The company’s losses widened from $965,000 and $1.68 million for the corresponding periods a year prior.

The company said it has started receiving payments from its farm-down of Block 3B/4B off South Africa.

"We are pleased with the continued operational and financial progress achieved in recent months.  Following the completion of the farm-down of Block 3B/4B, we received a payment of $8.3 million from our JV partners, with the potential for Eco to receive a further $11.5 million in 2025, subject to certain milestones being achieved on Block 3B/4B. This demonstrated our commitment to unlocking value from our South African portfolio while maintaining exposure to the highly prospective Orange Basin”, Gil Holzman, President and Chief Executive Officer of Eco said.

The company also sold a one percent interest in the block in exchange for the cancellation of all of Africa Oil’s shares and warrants in Eco, valued at CAD11.5 million ($8.2 million). Once the transaction is completed, Eco will hold a 5.25 percent interest in Block 3B/4B Offshore South Africa, it said.

Eco said that in June it acquired a 75 percent working interest in Block 1 offshore the South African Orange Basin from Todaco Energy (Proprietary) Ltd. and will become the operator of a new Exploration Right.

The company also said it is relinquishing its 50 percent working interest in Block 2B in South Africa, as it considers the block a non-core asset.

Eco said it is continuing the multi-block farm-out process in Namibia for all or part of its four offshore Petroleum Exploration Licenses (PEL): 97, 98, 99, and 100.  Eco holds operatorship and an 85 percent working interest in each PEL representing a combined area of 28,593 km2 (11,040 square miles) in the Walvis Basin.

"Eco also increased its exposure to South Africa's Orange Basin growing offshore energy acreage through the acquisition of a 75 percent working interest in Block 1, while taking the strategic decision to relinquish Block 2B.  Both of these developments further indicate Eco's ability to take strategically prudent decisions to maximize the company's exposure to exciting jurisdictions”, Holzman said. "With active farm-out discussions ongoing in Namibia and Guyana, we are well-positioned to capitalize on high levels of interest from potential partners in these exciting exploration regions. We remain committed to delivering value for our shareholders and look forward to sharing further updates in the months ahead".

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