Proactive Investors - Eco (Atlantic) Oil & Gas Ltd (AIM:ECO, TSX-V:EOG), the oil and gas exploration company focused on the offshore Atlantic Margins, has announced its results for the six months ended 30 September 2022, showing the firm in a solid financial position.
The company had cash and cash equivalents of US$24.6mln and no debt as of September 30, 2022, after paying US$11.3mln, being Eco's cash share of the Block 2B well, offshore South Africa. The company had total assets of US$67.3mln, total liabilities of US$5.7mln and total equity of US$61.6mln.
The company said it expects to have approximately US$ 17.5mln cash and cash equivalents at the end of November 2022, following receipt of the initial proceeds from the sale of its 100% interest in the Kozani Photovoltaic Development Project for total cash of €2.3mln (US$2.4mln), which closed on November 28. US$2mln is to be received by the company by close of business on November 30, 2022, and the outstanding balance is expected to be received by year-end 2022.
Eco also noted that after 12 years with the company, its non-executive chairman, Moshe 'Peter' Peterburg has informed the board of his plans to retire and, as such, he will not stand for re-election at the upcoming Annual General Meeting on December 29, 2022, and will step down from the company with immediate effect.
The company said it has commenced the process to find a replacement and, in the interim, Peter Nicol, currently a non-executive director, will assume the role of interim chairman.
In the interim results statement, Gil Holzman, president and chief executive officer of Eco Atlantic (LON:ECOE), commented: "Our main focus during the period, and through to recent weeks, was to execute a safe and environmentally friendly drilling campaign on the Gazania-1 exploration well, offshore South Africa. Although it was disappointing to not announce a commercial discovery, we can be proud of how we conducted our operations, which led to the well being drilled safely and on-time. We are now working with our JV partners on the licence to analyse the well data found and plan our next steps on the Block, which we believe contains significant untapped potential."
He added: "On Block 3B/4B, offshore South Africa, we are making steady progress towards conducting a two well drilling campaign on the licence. The drilling preparations and program are expected to commence in 2023 and, as previously announced, a potential farm-out process is also underway on the licence. We look forward to updating the market on both of these workstreams as appropriate.
"In Guyana, we remain highly optimistic about the potential contained within the Orinduik Block, and we are working with our JV partners to drill another well as quickly as possible. Guyana remains one of the most exciting exploration hotspots, alongside Orange Basin SA and Namibia, where we also hold a highly strategic acreage position, and we are working hard to deliver value for all our stakeholders across our asset portfolio in the near to medium term."
Holzman also thanked Moshe Peterburg for his tireless efforts during his tenure as Eco's chairman and since inception of the company.
"He played a pivotal role in the development and success of the Company to date and we wish him all the best for a happy retirement and are pleased he will remain an important shareholder of Eco," Holzman concluded.