Eco (Atlantic) Oil & Gas Ltd: Unaudited Results for the Three months ended June 30 2019 and Business Update
Friday 23 August 2019
Eco (Atlantic) Oil & Gas Ltd , the oil and gas exploration company with licences in highly prospective regions in Guyana, where the Company recently announced a major oil discovery, and Namibia announced its results for the three months ended 30 June 2019 and to provide a corporate and operational update.
Highlights:
Financials
- The Company ended the quarter to 31 March 2019 with cash and cash equivalents of CAD 25.0 million.
- During the first quarter of the financial year the Company completed its previously announced private placement raising net proceeds of CAD 21.6 million.
- As at 30 June 2019, Eco had total assets of CAD 43.8 million, total liabilities of CAD 5.7 million and total equity of CAD 38.1 million.
- As at 30 June 2019, the Company had CAD 42.2 million in cash and cash equivalents.
- As of today, the Company currently has approximately CAD 35.7 million in cash and cash equivalents.
Operations - Guyana
- On 12 August 2019, the Company announced a major oil discovery on its Orinduik offshore petroleum license in Guyana. The Jethro-1 exploration well was drilled by the Stena Forth drillship to a final depth of 14,331 feet (4,400 meters) in approximately 1,350 meters of water. Evaluation of logging data confirms that the Jethro-1 is the first discovery on the Guyana License and comprises high-quality oil-bearing sandstone reservoir of Lower Tertiary age. It encountered 180.5 feet (55 meters) of net high-quality oil pay in excellent Lower Tertiary sandstone reservoirs which supports recoverable oil resources. The well was cased and is awaiting further evaluation to determine the appropriate appraisal activity.
Following the completion of the Jethro-1 well, the Stena Forth drill ship will move to Eco's next target, Joe-1. The Joe-1 location is a shallower target and is expected to spud by the end of August 2019. The company will update the market upon spud of the Joe-1 well.
Gil Holzman, President and Chief Executive Officer of Eco Atlantic, commented:
"We ended our first financial quarter (30 June 2019) with a very strong balance sheet, which has enabled us to comfortably and successfully drill our first well and announce our first discovery offshore Guyana. This was the first well of our 2019 drilling program and begins a period of significant exploration activity. The drillship is on its way to our next target in Guyana, Joe-1, where we will, together with our partners Total and Tullow Oil (operator), commence the spudding of our second well in the coming days and expect to have results in second half of September.
"The year-to-date has been a transformational period for the Company, and with a significant oil discovery, a very strong balance sheet and a portfolio rich with prospects and opportunities in both Guyana and Namibia, we look forward to an exciting future."
More information here.