Eco Atlantic Oil & Gas Ltd (LON:ECO, CVE:EOG) chief executive Gil Holzman has told investors the company is very excited by the opportunity to hopefully discover very significant oil resources in the coming months.
As it looks forward to the upcoming high-impact Jethro-Lobe exploration well, in the second quarter, the company today released its financial results statement for the three months ended 31 December.
It comes after Eco last week announced the signing of a rig contract for Jethro-Lobe, and potentially a second optional follow-up well.
“We are pleased to report that we started the calendar year 2019 with the same intensity with which we ended 2018,” Holzman said in the results statement.
“During the first two months of 2019, following the announcement of our initial drilling programme on our Orinduik Block offshore Guyana, we, together with our partners on the block, have signed a drilling contract and confirmed our intention to spud the first well during the second quarter of 2019.
“The completion of Total's farm-in to our block and the receipt of USD 12.5 million, together with our existing cash resources, means that we are fully funded for at least two wells on our high impact 2019 drilling program in Guyana.
“With our strong balance sheet, we remain in a robust financial position.”
The pre-revenue exploration company reported a US$14.35mln profit for the quarter, after some U$16.75mln of income from the Total deal was marked as revenue. At the end of December with US$25.74mln cash and equivalents.
Looking to the catalysts and milestones ahead, Holzman added: "We look forward to updating the market on the selection of the second target well to be drilled on the Orinduik Block, immediately after the Jethro-Lobe well, and we are very excited by this opportunity to hopefully discover very significant oil resources in the coming months."