Eco (Atlantic) Oil and Gas Ltd. Announces Results For Three & Nine Months Ended 31 Dec 2025

Executive Summary

• Eco Atlantic reported unaudited three‑month results ending 31 Dec 2025 with a net profit of US$903k, while nine‑month results showed a cumulative loss of US$2.31 M.
• The company completed a US$10 M private placement on 29 Jan 2026 and migrated its shares to the London Stock Exchange SETS platform on 19 Feb 2026, enhancing liquidity.
• Significant strategic agreements were disclosed: a binding Framework & Options Agreement with Navitas Petroleum (US$2 M option fee) covering the Orinduik Block (Guyana) and Block 1 CBK (South Africa), plus multiple farm‑out milestones and pending regulatory approvals across its portfolio.

Key Details

• Cash Position: US$2.9 M cash & equivalents as of 31 Dec 2025; post‑period raise added US$10 M.
• Balance Sheet Highlights (31 Dec 2025): Total assets US$19.9 M; total liabilities US$1.3 M; equity US$18.7 M.
• Financing: Private placement of US$10 M at market price with new Israeli institutional investors (closed 29 Jan 2026).
• Share Migration: Common shares moved to LSE SETS platform on 19 Feb 2026, enabling continuous international trading.
• RSU Conversion: 3.7 M Restricted Share Units vested and will convert into common shares; admission applications filed for AIM (≈4 Mar 2026) and TSX‑V.
• Navitas Framework Agreement (signed 4 Dec 2025):
• US$2 M option fee paid to Eco Atlantic.
• Navitas granted exclusive options:
  • Orinduik Block (Guyana): US$2.5 M payment on exercise; potential operator with 80 % working interest; Eco retains 20 % carried interest capped at US$11 M net.
  • Block 1 CBK (South Africa): US$4 M payment on exercise; Navitas may become operator with up to 47.5 % interest; Eco’s remaining interest also carried, capped at US$7.5 M net.
• Milestone Payments: Anticipated US$11.5 M from Block 3B/4B JV partners upon achievement of farm‑out milestones (announced 6 Mar 2024).
• South Africa – Block 1 CBK: Renamed in honour of late co‑founder Colin Kinley; 25 % interest transferred to OrangeBasin Energies on 19 Nov 2025.
• Block 3B/4B Environmental Permit: Delayed by third‑party legal proceedings; company maintaining engagement with regulators.
• Namibia – PEL 98 (Sharon Block): Entire working interest farmed out to Lamda Energy pending government approval; ongoing discussions for additional farm‑outs.
• Falkland Islands – PL001 Licence: Non‑binding MoA signed 12 Jan 2026 with Navitas and JHI; Eco holds 6.6 % interest, targeting definitive agreement by Mar 2026.
• Financial Performance (Three months ended 31 Dec 2025):
• Revenue: US$2.0 M (primarily option grant income).
• Operating expenses: US$1.10 M.
• Net profit before tax: US$903 k; after tax same amount.
• Financial Performance (Nine months ended 31 Dec 2025):
• Revenue: US$52.1 k.
• Operating expenses: US$4.32 M.
• Net loss before tax: US$2.31 M; after tax same amount.
• Cash Flow: End‑period cash US$2.95 M (down from US$4.73 M); net decrease driven by operating losses offset partially by financing inflow and investment proceeds (US$7.83 M from Block 3B/4B farm‑out).

Notable Quotes

• Gil Holzman, President & CEO: “This period saw Eco deliver a number of important strategic and financial milestones… our partnership with Navitas validates the quality of our portfolio and will provide near‑term capital alongside meaningful carried exposure across key assets.”

Materiality Assessment: Material – Neutral (the release contains material financial results, financing activity, and significant strategic agreements that are likely to influence investor decisions).