Eco (Atlantic) Oil & Gas Ltd (AIM:ECO, TSX-V:EOG) is well-positioned for a dynamic period of exploration and deal making, chief executive Gil Holzman told investors in Thursday’s quarterly results statement.
The explorer, in the statement, said it ended the third quarter with $6.03 million and had no debt – whilst it stated an asset value of $27.18 million.
"We continue advancing Eco's promising exploration licenses in key hydrocarbon regions,” Holzman said in a statement.
“During the period, we completed our transaction with Africa Oil on Block 3B/4B, securing significant exposure to a multi-billion-barrel prospect.
“This deal also enabled us to cancel approximately C$11.5 million in shares and welcome Emily Ferguson to our board of directors.”
Holzman added: “While the farmout processes are progressing, we are in advanced discussions on potential deals in both Namibia and Guyana and look forward to updating the market in due course.
“Meanwhile, offshore South Africa, we are excited about the upcoming drilling campaign on Block 3B/4B with our JV partners and the formal issuance of Block 1 in the Orange Basin.”
Detailing recent progress, Eco noted that in South Africa it completed the acquisition of Block 1 in the Orange Basin, where it will hold a 75% working interest through its subsidiary Azinam South Africa.
The is subject to government approvals. Also, the company secured regulatory approval for its transaction on Block 3B/4B, reducing its interest to 5.25%.
In Namibia, the company continues the farm-out process for its four offshore Petroleum Exploration Licences (97, 98, 99, and 100). The licenses cover a combined area of 28,593 km² in the Walvis Basin.
Eco is also engaged in discussions with potential farm-out partners for its Orinduik Block offshore Guyana.