Offshore explorer, Eco Atlantic Oil & Gas last week reported its financial and operational results for the year ended 31 March 2015 stating it intends to reach several anticipated milestones for the remainder of 2015 to the beginning of 2016. The annual results contain various references to recent corporate achievements.
Of particular note, Eco Atlantic reported, are the two farm-out agreements with AziNam and Tullow Oil plc which provided a capital contribution of CAD5.6 million. The operating costs on the licenses were CAD12 million, however, due to being carried on the Cooper license, the net Eco Atlantic spend amounted to only CAD2.1 million.
On general and administrative costs, the oil explorer reports it has reduced these by CAD120,000 for the period under view, stating that for the year to date, both operational and overhead costs have decreased.
The financial report lists the execution of a 1,000 square km 3D Seismic programme on the Cooper License. Still during the period under review, Eco Atlantic has started processing the data from the 3D survey on the Cooper license together with block partners Tullow Oil, AziNam and Namcor. A 2D seismic survey covering 1100 sqkm on the Guy license was also completed.
Other milestones, the company said, include the completion of an amalgamation with Pan African Oil Ltd. (PAO) in which the company acquired CAD3 million in cash and two additional Namibian petroleum exploration licenses.
Eco Atlantic CEO, Gil Holzman said, “We have had an extremely productive year. Despite the very busy operational schedule, including the completion of two proprietary seismic programmes, we have been able to maintain our cash reserves around CAD10 million.”
“This achievement is as a result of favourable farm-out agreements that we signed with our two main partners on our Namibian blocks, as well as management’s continuous efforts to cut costs and increase efficiency. We are well on track to complete the processing and interpretation on our Cooper license early in the first quarter 2016 when we and our partners will contemplate the drilling decision,” he added.
Looking ahead, Holzman said, “Our strong balance sheet has allowed the company to continue 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 jurisdictions. We remain confident that the market will turn eventually and credit Eco Atlantic with its true value as reflected in our strong balance sheet and the implied asset value of our carried interests throughout our blocks.”
Through wholly-owned subsidiaries, the Eco Atlantic currently holds interests in five offshore petroleum licenses covering more than 38,000 square kilometres in the Walvis and Lüderitz Basins, and one license block covering 23,000 square kilometres, which includes both onshore and offshore areas.