Stronger balance sheet in trying times
Eco Atlantic Oil & Gas has managed to strengthen its balance sheet against a background of depressed oil prices. More surprisingly, while major oil producers are putting their exploratory projects on ice, Eco Atlantic will process and interpret data obtained from work done on its three Namibian oil blocks in 2014 while growing its balance sheet in excess of US$10 million.
Eco Atlantic Oil & Gas Limited reported its financial and operational results for the three- and nine-month periods ending 31 December 2014 and provided an update on recent corporate achievements and anticipated milestones for 2015.
Of particular note, Eco Atlantic reported on the achievement of a number of operational and business milestones which include amongst others; the execution of a 1,000 km2 3D seismic programme on the Cooper License, the execution of a 1,100 km2 2D seismic programme on the Guy License, the acquisition of a 3,000 km2 2D seismic programme on the Sharon License, and the completion of an amalgamation with Pan African Oil Limited, explained Eco Atlantic Chief Executive Officer, Gil Holzman.
Eco Atlantic acquired two additional Namibian petroleum exploration licenses and a cash injection of US$2.9 million and an amended Farm-out agreement with AziNam Ltd pursuant to which Eco Atlantic transferred a portion of its working interest in the offshore licenses in exchange for, among others, an aggregate of US$4.2 million in cash.
“We have had an extremely busy third quarter [October 2014 – December 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 programme on Guy and Sharon and the 3D seismic programme on Cooper, for all of which we were fully carried by our partners,” Holzman remarked.
“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 US$10 million in cash as of today”.
Looking to the remainder of 2015, a confident Holzman said “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 US$40 million.”