Eco (Atlantic) Oil & Gas Ltd (AIM:ECO, TSX-V:EOG) chief executive Gil Holzman highlighted significant progress, as the explorer released financial results for its three-month period ended June 30.
"Our active farm-out processes in both Namibia and Guyana have seen Eco actively engaged with a number of potential high-calibre partners as we work to monetise these licences as fast as is practically possible for the benefit of all involved,” Holzman said in the results statement.
“We look forward to providing updates on material developments to all our stakeholders over the coming months."
The company held $1.185 million in cash and cash equivalents with no debt as of the end of June 2024. Total assets stood at $29.65 million, with total liabilities amounting to $0.791 million.
Following the recent completion of a farm-down of a 13.75% participating interest in Block 3B/4B offshore South Africa, Eco expects to boost its cash reserves to over $9 million.
The cash is anticipated to be received in early September 2024.
Operationally, Eco has seen progress across its portfolio.
In South Africa, the company completed several key transactions, including the acquisition of a 75% working interest in Block 1 and the sale of in Block 3B/4B. The company has also relinquished its 50% working interest in Block 2B.
In Namibia, Eco is progressing with a multi-block farm-out process across its offshore licenses, and in Guyana, the company remains engaged in farm-out discussions for the Orinduik Block.
Holzman commented: "We continued to make significant progress across our asset base during the period.
“On Block 3B/4B, we announced the completion of Eco's farm-out agreement with TotalEnergies and QatarEnergy, which will see Eco receive US$8.3 million while still maintaining a material interest in the Block.
"We also announced Eco's transaction with AOI, where the Company sold a 1% interest in Block 3B/4B in exchange for cancellation of all of Africa Oil's shares and warrants in Eco worth C$ 11.5m.
“Eco continues to possess significant upside potential and exposure to assets offshore South Africa and in the Orange Basin, two highly exciting regions for hydrocarbon prospectivity.”