Eco (Atlantic) Oil & Gas Ltd (AIM:ECO, TSX-V:EOG) made “progress on all fronts” in its exploration portfolio, chief executive Gil Holzman said in the company’s interim results update.
The explorer told investors it ended September with US$3.85 million of cash and cash equivalents, giving it a stable cash position whilst the team advances farm-out efforts to secure new partners for its high-impact portfolio.
Holzman highlighted that in Guyana, where Eco recently increased its stake in the Orinduik block to 75%, it has received interest from “a number of multi-national oil and gas companies”.
The stake acquisition in Guyana was a key feature of recent trading. Eco took up an additional 60% of the project and became the operator through a deal with exiting former partner Tullow Oil.
Elsewhere, in South Africa, Eco saw notable progress with Block 3B/4B with the addition of Africa Oil to the venture partnership in July (with the entrant paying up to US$10.5 million in staged payments for a 6.25% stake) – a US$2.5 million instalment is expected before the end of 2023 upon governmental approval of the deal.
A further farm-out is being sought in the meantime.
In Namibia, nearby third-party drilling and discoveries are driving increased levels of industry interest in the region.
With a strategic acreage position, comprising four licence blocks, Eco continues to assess farm-out opportunities and its options to progress exploration and commercial activity for its assets.
“The last two quarters of 2023 have been a highly active period for us, and we look forward to sharing further updates on the ongoing farm-out workstreams and drilling plans with our stakeholders as and when we are in a position to do so,” Holzman said in a statement.