Eco Atlantic Announces Third Quarter Results and Provides Business Update
February 25 2015 - 9:15AM
Eco (Atlantic) Oil & Gas Ltd. ("Eco Atlantic")
(TSX-V:EOG) (NSX:EOG) today reported its financial and operational
results for the three and nine month periods ending December 31,
2014 and provides an update on recent corporate achievements and
anticipated milestones for the remainder of 2015.
Of particular note, Eco Atlantic reported on the achievement of
the following operational and business milestones:
- Execution of 1,000 km2 3D Seismic program on the Cooper
License;
- Execution of 1,100 km 2D Seismic program on the Guy
License;
- Acquisition of 3,000 km 2D Seismic program on the Sharon
License;
- Completion of an amalgamation with Pan African Oil Ltd.
("PAO") in which the Company acquired $2.9 million
in cash and two additional Namibian petroleum exploration licenses;
and
- An amended Farmout agreement with AziNam Ltd pursuant to which
the Company transferred a portion of its working interest in the
Offshore Licenses in exchange for, among other things, an aggregate
of $4.2 million in cash. The Farmout Transaction closed on February
4, 2015 and cash was received on February 24, 2015 increasing the
treasury to $10.3m;
- Continuous decrease in operational and overhead costs, and
corporate business development including capture of new acreage
opportunities in low cost, highly prospective oil provinces.
Eco Atlantic CEO, Gil Holzman stated: "We have
had an extremely busy third quarter (Oct –Dec 2014), the fruits of
which we see today and going forward. On the operational side, we
made significant progress on all of our licenses with the
completion of the 2D seismic program on Guy and Sharon and the 3D
seismic program on Cooper, for all of which we were fully carried
by our partners. We expect to complete the processing and
interpretation by mid-2015. On the finance side, recognizing the
challenges facing the industry, we completed an amalgamation with
another company and an additional farm-out which increased our
treasury to over $10 million in cash as of today". Looking to the
remainder of 2015, Holzman continued: "In addition to continuing to
complete the milestones on our existing Namibian assets, our strong
balance sheet has allowed the company to advance the pursuit of
other assets in regions in which we already operate, such as Ghana,
and to consider new opportunities in highly prospective regions. We
remain confident that the market will eventually turn and reveal
Eco Atlantic's true value reflected in our strong balance sheet and
carried interest in our assets valued over $40m."
Summary of Financial Results
Eco Atlantic's management is working to focus the company's
resources on activities aimed at driving shareholder value. As of
December 31, 2014, Eco Atlantic had cash, cash equivalents and
short-term bank deposits of approximately $12.2 million and as of
February 25, 2015 - $10.3 million. The Company's quarterly
financial statements, and Management Discussion and Analysis, are
available on the System for Electronic Document Analysis and
Retrieval (SEDAR) website at www.sedar.com.
The Company further announces that in accordance with its 2013
Restricted Share Unit Plan and the Policies of the TSX Venture
Exchange, it has issued 475,000 restricted share units (the "RSUs")
to Insiders of the Company. The RSUs will vest immediately.
About Eco Atlantic
Eco Atlantic is an oil and gas exploration company focused on
the acquisition and development of unique upstream petroleum
opportunities around the world. The Company's objective is to
identify technically merited prospective new and developing
projects in frontier areas requiring low cost entry. Through a
wholly owned Namibian subsidiary ("Eco Namibia"),
the Company currently holds three offshore petroleum license blocks
covering more than 25,000 square kilometers in the Walvis Basin and
one license block covering 23,000 square kilometers, which includes
both onshore and offshore areas. Through another wholly-owned
subsidiary, Pan African Oil Namibia (Pty) Ltd., Eco Atlantic
additionally operates two licenses offshore Namibia which cover
close to 13,000 square kilometers. Founded in 2008, Eco Namibia
enjoys a strong local presence and has a longstanding relationship
with the energy and oil and gas sector in Namibia and other
maturing exploration plays in Africa.
Forward Looking Statements
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS: This press
release may contain "forward-looking information" within the
meaning of applicable Canadian securities legislation. All
statements, other than statements of historical fact, included
herein may be forward-looking information. Generally,
forward-looking information may be identified by the use of
forward-looking terminology such as "plans", " expects" or "does
not expect", "proposed", "is expected", "budgets", "scheduled",
"estimates", "forecasts", "intends", "anticipates" or "does not
anticipate", or "believes", or variations of such words and
phrases, or by the use of words or phrases which state that certain
actions, events or results may, could, would, or might occur or be
achieved. This forward-looking information in respect of Pan
African and Eco Atlantic reflects Pan African's or Eco Atlantic's,
as the case may be, current beliefs and is based on information
currently available to Pan African and Eco Atlantic, respectively,
and on assumptions Pan African or Eco Atlantic, as the case may be,
believes are reasonable. Forward-looking information is subject to
known and unknown risks, uncertainties and other factors that may
cause the actual results, level of activity, performance or
achievements of Pan African or Eco Atlantic to be materially
different from those expressed or implied by such forward-looking
information. Such risks and other factors may include, without
limitation: general business, economic, competitive, political and
social uncertainties; commodity prices; delay or failure to receive
board or regulatory approvals; changes in legislation, including
environmental legislation, affecting Eco Atlantic; timing and
availability of external financing on acceptable terms; the
drilling and completion of future wells; and limited available
geological data. Although Pan African and Eco Atlantic have
attempted to identify important factors that could cause actual
results to differ materially from those contained in
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended.
Accordingly, readers should not place undue reliance on
forward-looking information. Readers are cautioned that the
foregoing list of factors is not exhaustive. Readers are further
cautioned not to place undue reliance on forward-looking statements
as there can be no assurance that the plans, intentions or
expectations upon which they are placed will occur. Such
information, although considered reasonable by management at the
time of preparation, may prove to be incorrect and actual results
may differ materially from those anticipated. Forward-looking
statements contained in this press release are expressly qualified
by this cautionary statement.
The forward-looking statements contained in this press release
represent the expectations of Pan African and Eco Atlantic as of
the date of this press release and, accordingly, are subject to
change after such date. However, Pan African and Eco Atlantic each
expressly disclaims any intention or obligation to update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise, except as expressly
required by applicable securities law.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this press release.
CONTACT: Gil Holzman
President and Chief Executive Officer
gil@ecooilandgas.com
Tel: +972.508884529
Alan Friedman
Executive Vice President
alan@ecooilandgas.com
Tel: +1.416.250.1955
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