Eco (Atlantic) Oil & Gas Ltd said it made significant strides in the financial year just ended.
The oil and gas exploration company has made progress at its high-value assets in Namibia and Guyana and is committed to achieving exploration success at the sites, according to its results statement covering the year to the end of March.
As a pre-revenue company, Eco is still loss-making but it substantially reduced operating expenses to US$3.73mln, resulting in a net loss for the year of US$3.68mln, compared to a loss of £20.07mln the year before.
Working capital at the end of the year stood at US$13mln. Since then, the debt-free company has raised US$9.4mln through a share placing.
“In terms of oil and gas exploration, we have made material progress in Namibia, through the successful negotiation and reissuance of our four licences in the Walvis Basin, and in Guyana we have completed a landmark transaction with JHI, ensuring near-term exposure to low risk, high impact drilling activity. We see the JHI Transaction as an important step for us, as we look to broaden our presence in Guyana, with the potential for increased future collaboration with the region's existing players,” said Gil Holzman, the president and chief executive officer of Eco Atlantic.
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“We also remain very upbeat about recommencing drilling activity on the Orinduik Block and we look forward to updating our investors on the timing of this during Q3 [third quarter] 2021. We were also very encouraged to learn about the Whiptail discovery made by ExxonMobil and partners on the Stabroek block yesterday adding to the estimated discovered recoverable resource of 9 billion barrels of oil equivalent and further highlighting the basin's prospectivity,” he added.
As previously reported, Eco is fully funded for further drilling on the Orinduik Block and, with its joint venture partners, is assessing all opportunities available to drill at least one exploration well into the light oil cretaceous stacked targets as soon as practical.
Shares in Eco (Atlantic) were up 2.1% at 24.75p in early deals.