Eco (Atlantic) Oil and Gas Ltd Announces Direct Equity Subscription & Issue of Warrants

Executive Summary

• Eco Atlantic Oil & Gas Ltd. entered into binding agreements for a US $10 million private placement of 26,909,091 new common shares at £0.0275 (CAD $0.51) per share.
• Each newly issued share is accompanied by one warrant exercisable at £0.04 (CAD $0.74) per share for three years, providing potential future equity dilution.
• Net proceeds are earmarked for US $5 million of geological & geophysical work, US $2.5 million to pursue new ventures, and US $2.5 million for general & administrative purposes, strengthening the company’s balance sheet and enabling accelerated technical programs in Guyana, Namibia and South Africa.

Key Details

• Gross proceeds: US $10 million (≈ £7.4 m, CAD $13.8 m).
• Shares issued: 26,909,091 new common shares (“Subscription Shares”).
• Issue price: 27.5 pence per share (CAD $0.51), based on AIM closing price of 22 Jan 2026.
• Warrants: One warrant per Subscription Share; exercise price 40 pence (CAD $0.74); exercisable for three years from issue date.
• Ownership impact: Post‑issuance, Subscription Shares represent ~8.54 % of existing share capital on a non‑diluted basis (7.86 % after enlargement).
• Conditions to closing: AIM admission, receipt of subscription funds, regulatory approvals (including TSX‑V approval).
• Admission timeline: Application for AIM admission expected around 30 Jan 2026 (8:00 a.m. GMT); separate application to TSX‑V pending approval.
• Use of proceeds:
• US $5.0 million – planned geological and geophysical work.
• US $2.5 million – identification and pursuit of potential new ventures.
• US $2.5 million – general & administrative purposes.
• Management comment: Gil Holzman, President & CEO, highlighted the subscription as a strong endorsement of Eco Atlantic’s Atlantic Margin portfolio and its capital‑efficient strategy, providing flexibility to accelerate key technical and corporate programmes across licences in Guyana, Namibia and South Africa throughout 2026.

Notable Quotes

“We are delighted to welcome a number of leading Israeli institutional investors… Their participation … represents a strong endorsement of the quality of our Atlantic Margin portfolio, our exploration and value‑creation strategy, and our disciplined, capital‑efficient approach.” – Gil Holzman, President & CEO

Materiality: Material – Positive (significant equity financing that materially enhances liquidity and supports future operational programs).