Eco (Atlantic) Oil and Gas Ltd. Announces Audited Results for the Year Ended 31 March 2025

Executive Summary

• Eco (Atlantic) Oil & Gas Ltd. released its audited financial results for the year ended March 31, 2025, reporting a net loss of $2.3 million and cash reserves of $4.7 million with no debt.
• The company received an initial $8.3 million milestone payment from JV partners for the Block 3B/4B farm-down in South Africa, with an additional $11.5 million expected between Q4 2025 and Q2 2026.
• Significant operational progress includes the acquisition of extensive subsurface data for Block 1 in South Africa, the relinquishment of Block 2B, and ongoing farm-out processes in Namibia and Guyana.

Key Details

• Financial Highlights (Year Ended March 31, 2025):
  • Cash and cash equivalents: $4.7 million (up from $3.0 million in 2024).
  • Total Assets: $21.6 million.
  • Total Liabilities: $1.2 million.
  • Total Equity: $20.4 million.
  • Net Loss: $2.3 million (compared to $21.1 million loss in 2024).
  • Basic and diluted net loss per share: $0.006.
  • Gain on farm-out: $3.4 million.
• Post-Period End Financials:
  • Received $8.3 million milestone payment in August 2024 from Block 3B/4B JV partners.
  • Additional $11.5 million expected in two tranches between Q4 2025 and Q2 2026, contingent on Environmental Impact Assessment completion and spudding of the first well.
• South Africa Operations:
  • Block 2B: Full relinquishment confirmed by Petroleum Agency South Africa (PASA) on December 11, 2024, following the Gazania 1 well.
  • Block 1:
    • Acquired 75% interest; title award and Exploration Right received June 4, 2025.
    • Acquired extensive subsurface data on May 6, 2025, including two 3D seismic surveys (3,500 km² total), over 20,000 line km of 2D seismic data, and well logs from three past wells.
    • G&G team preparing seismic interpretation; formal farm-out process planned for late August 2025.
  • Block 3B/4B:
    • Environmental Authorization granted September 16, 2024; awaiting final Minister decision.
    • Farm-out agreement completed August 28, 2024, reducing Eco's interest by 13.75% for $8.3 million.
    • Sale of 1% Participating Interest to Africa Oil completed January 13, 2025, in exchange for cancellation of ~16% of Eco's issued capital (shares and warrants).
• Namibia Operations:
  • Purchased license to 1,324 km of existing 2D seismic survey in Tamar Block (PEL 100) in August 2024.
  • Multi-block farmout process underway for PELs 97, 98, 99, and 100 (Walvis Basin).
  • Eco holds Operatorship and 85% Working Interest in each PEL, totaling 28,593 km².
• Guyana Operations:
  • Active farm-out process for the Orinduik Block.
  • Team reassessing Jethro discovery parameters.
  • Noted recent activity from neighbor ExxonMobil in the Stabroek Block (Hammerhead discovery).

Notable Quotes

• Gil Holzman, President and CEO: "The year to 31 March 2025 was highly active and saw Eco deliver progress across its existing portfolio, in addition to the Company adding new and exciting exploration assets into the fold... The Orange Basin has become one of the most attractive exploration destinations for global oil and gas companies, so we are excited about what the future has in store for Block 3B/4B and Block 1."