Eco (Atlantic) Oil & Gas Ltd chief executive Gil Holzman told investors the explorer has exciting opportunities for each of its assets, as the company reported on what it described as “period of dynamic activity”.
The company, in an update for the three and nine months ending December 31, reported a healthy financial position with cash and cash equivalents of US$2.2 million and with no debt – before the receipt of a further $2.5 million cash from partner Africa Oil.
Eco has seen progression in each of its assets – in South Africa, Namibia, and Guyana.
In South Africa, the company has applied for a Production Right Application for Block 2B and is making strides towards a drilling campaign in Block 3B/4B.
And, notably, in the current quarter, it received final government approval for the farm-out of a 6.25% interest in Block 3B/4B to Africa Oil Corp (TSX:AOI), resulting in the $2.5 million payment.
Meanwhile, in Namibia, Eco is leveraging continued third-party drilling success in the region to attract significant interest in its untested exploration acreage. It is presently assessing farm-out opportunities for its four licences in this region.
Elsewhere, in Guyana, Eco received approval to consolidate its stake in the Orinduik Block, where it now holds a 75% interest in total and it is pursuing a farm-out process for the block.
“Each asset within our exploration portfolio yields exciting opportunities and I am pleased to report continued progress across all fronts,” Holzman said.
“Notably government approval of the farm-out agreement of our 6.25% Participating Interest in Block 3B/4B to Africa Oil has strengthened our cash position as we continue preparations for a two-well drilling campaign on the Block and progress farm-out discussions.
“Guyana remains one of the most important hydrocarbon provinces in the world and Eco’s position has been strengthened by its increased Working Interest in the Orinduik Block.
“We have seen a great deal of interest from a number of oil and gas players as we progress a formal farm-out process.”
He added: “Eco continues to benefit from its position in Namibia which sits close to some of the largest oil discoveries in 2023 an area that we expect will see further excitement and activity over the course of this year which will aid our farm-out process.”