Eco (Atlantic) Oil & Gas Ltd., the oil and gas exploration company with licences in proven oil province in Guyana and the highly prospective basins in Namibia, is pleased to announce its results for the three and nine months ended 31 December 2020 , alongside a corporate and operational update.
- As at 31 December 2020 , the Company had cash and cash equivalents of US$16,350,090 with no debt.
- Eco remains fully funded for its share (15% WI net) of its planned two exploration wells at the Orinduik Block offshore Guyana .
- As at 31 December 2020 , the Company had total assets of US$17.7 million and a net equity position of $17.4 million.
- The Company has decreased its total non-exploration expenses, including general and administration expense and compensation costs incurred during the nine months ended 31 December 2020 (H1 2021), when compared to the nine months ended 31 December 2019 , by over 50%.
Eco Atlantic Oil & Gas
- Multiple light sweet oil drilling prospects on the Orinduik block are currently being reviewed by the Company and its licence partners (the " JV Partners "), with high-graded candidates being considered for the next drilling programme. The intention is to provide further definition to the upper and lower Cretaceous interpretation and target selection for drilling.
- The Company, together with its strategic alliance partner Africa Oil Corp., continues to evaluate additional asset opportunities in both West Africa and South America.
- On 30 November 2020 , the Company successfully negotiated the reissuance of its four licenses in Namibia's Walvis Basin for 10 years, which received final Government confirmation on 5 February 2021.
Solear Ltd. (formerly Eco Atlantic Renewables post period end)
- On January 26, 2021 , the Company announced the formation of a new joint venture company with Nepcoe Capital Partners Ltd , to source, acquire and develop an exclusive pipeline of potential high yield solar projects. At the time of launch, the new entity was to be called Eco Atlantic Renewables, however, in order to further reflect the standalone nature of the business the company has been re-named Solear Ltd ("Solear").
- Eco agreed to provide a secured loan of up to US$6 million (the "Loan") to Solear, as a result of which the Company holds a 70% shareholding in Solear, with Nepcoe holding the remaining 30%. The Loan, which carries a 2% annual interest, is expected to be repayable from the proceeds of either a public or private financing, through operating cash flow, and/or a project monetization event.
- In January 2021 , Solear completed its first acquisition of a fully contracted, permitted, and build ready project in Greece , known as the Kozani Project .
- Solear is continuing to build its exclusive portfolio in Spain , Italy , and Greece and is targeting a further financing event in the form of a private finance and/or IPO later this year.
- Guyana continues to be one of the most prolific exploration regions in the world, with over nine billion barrels of oil discovered in the last five years. Eco and its JV Partners have already delivered two substantial oil discoveries on the Orinduik Block and the licence continues to offer significant upside potential. With the increase in oil prices the JV partners will revisit the Jethro discovery commercialisation potential.
- As previously reported, Eco is fully funded for further drilling on the block and, with its JV Partners , is assessing all opportunities available to drill at least two exploration wells into the light oil cretaceous targets as soon as practical. The Company is fully aligned with its JV partners on careful target selection based on the reprocessed 3D and the block and nearby oil discoveries for the next drilling campaign and Eco expects to be able to update the market on further drilling plans in due course.
The Orinduik JV partners are Eco Atlantic (15% working interest ("WI")), Tullow Guyana B.V. ("Tullow") (Operator, 60% WI) and Total E&P Guyana B.V. ("Total") (25% WI) in partnership with Qatar Petroleum.
- The Company's successful negotiation of the reissuance of its four licences in the Walvis Basin , Offshore Namibia, lead to the expansion of its acreage position. As announced on 30 November 2020 , the Company's updated licences in Namibia cover approximately 28,593 km2, with over 2.362 BBOE of prospective P50 resources.
- Eco has a strategically significant acreage position in-country and is progressing its various work programmes across its four blocks offshore Namibia . The Company has witnessed considerable interest from multiple international oil companies in Namibia .
- The Company continues to monitor upcoming drilling activity in the region, which could potentially see up to five exploration wells drilled on behalf of ExxonMobil, Total, Maurel & Prom, Shell and ReconAfrica in the next 12 months.
- Throughout the ongoing COVID-19 pandemic, Eco has prioritised the welfare of its staff and partners.
- The Company continues to keep a strict control over costs throughout the business, which continues to generate material savings and has ensured that Eco remains well capitalised with a strong balance sheet.
Gil Holzman, President and Chief Executive Officer of Eco Atlantic , commented:
"We have made significant progress in recent months across a number of aspects of the business. We have demonstrated our commitment to our core business strategy of achieving near-term exploration success in Guyana and Namibia , through maturing and upgrading the drilling targets' inventory in Guyana and the successful reissuance of our licences in Namibia , as well as adding a highly relevant and attractive asset to our portfolio through the formation of Solear Ltd. , a majority held renewable energy company.
"Successfully renegotiating our four licences offshore Namibia , which we see as being an increasingly active exploration jurisdiction, was an important milestone for the Company and gives us a considerable footprint in country from which we will seek create significant shareholder value.
"In Guyana, we continue to work with our partners in the Orinduik block to finalise drilling selection, and look forward to recommencing drilling activity in the coming months. We remain very confident in Guyana's prospectivity as a hydrocarbon basin and the upside potential it offers. The recent increase in oil prices makes our existing discoveries in Guyana and drilling prospects inventory ever more attractive.
"Our recent strategic investment into Solear Ltd. demonstrates our drive and determination to use our cash reserves wisely alongside high impact exploration drilling. We are very excited about both the near-term opportunities that Solear brings, as well as the long-term benefits that come with broadening our asset portfolio. Solear has a highly attractive pipeline of low cost, high yield solar PV projects, that have the potential to generate high IRR returns for our shareholders. As ever, we look forward to keeping the market updated on our progress over the coming months."