Mr. Gil Holzman reports

ECO (ATLANTIC) OIL AND GAS LTD. ANNOUNCES AUDITED RESULTS FOR THE YEAR ENDED 31 MARCH 2023

Eco (Atlantic) Oil & Gas Ltd. has provided its audited results for the year ended March 31, 2023. All amounts are in U.S. dollars, unless otherwise stated.

Highlights:

Financials (as at March 31, 2023)

• The company had cash and cash equivalents of $3,770,614 (U.S.) and no debt.
• Eco has cash and cash equivalents of $6.4-million (U.S.) on the balance sheet as at July 31, 2023.
• The company had total assets of $53,777,531 (U.S.), total liabilities of $5.9-million (U.S.) and total equity of $48-million (U.S.).

Operations

South Africa

Block 3B/4B

• Postperiod-end, the company signed a legally binding letter of intent with Africa Oil to farm out a 6.25-per-cent participating interest in block 3B/4B, offshore South Africa, for up to $10.5-million (U.S.) in cash.
• In March, 2023, Africa Oil released a new competent person's resource report confirming that the block contains estimated P50 prospective resources of approximately four billion barrels of oil equivalent (boe), one billion boe net to Eco (Atlantic) prior to the sale of the aforementioned participating interest which is expected to complete shortly.
• Eco, alongside its joint venture partners, applied for environmental authorization to undertake exploration activities in block 3B/4B in the Orange basin. An application was made to drill one well and one contingent well with an area of interest in the north of the block. A comprehensive environmental and social impact assessment (ESIA) process commenced in March, 2023, in preparation for drilling activity on the block.
• The JV partners continue to progress plans to conduct a two-well campaign on the block in conjunction with progressing the collaborative farmout process, up to 55-per-cent gross working interest, with various potential parties.

Block 2B

• On Nov. 15, 2022, a production right application to the Petroleum Agency of South Africa, for block 2B, based on the existing oil discovery of AJ-1 and potential future operations was submitted by the JV partners.
• Eco continues to believe that block 2B contains considerable hydrocarbon resources and looks forward to providing further updates as the company looks to deliver value from the licence for all stakeholders.

Namibia

• Following the significant drilling success in the area, Eco continues to receive third party interest in its strategic acreage position offshore Namibia.
• The company continues to assess farmout opportunities with its four licences in the region as it considers options for progressing exploration and commercial activity on its acreage.

Guyana

• Eco (Atlantic) and its JV partners remain committed to further drilling on the Orinduik block and continue assessing opportunities to drill at least two exploration wells into the light oil Cretaceous targets as soon as practical. Further updates will be made on the matter in due course.

Gil Holzman, president and chief executive officer of Eco (Atlantic), commented:

"As a business we continue to make significant strides across our strategic portfolio of hydrocarbon assets, in some of the world's most prolific exploration areas. Following the stabilizing of commodity prices during the first half of this year, alongside a number of discoveries being made in and around the regions we operate in, we continue to see strong industry interest in our unique acreage positions in Orange basin, S.A., Walvis basin Namibia and the Guyana Suriname basin.

"The agreed transfer of a portion of our WI on block 3B/4B to our strategic alliance partner Africa Oil will strengthen the JV position amid our continued negotiations with third parties to farm into the block and execute a drilling campaign targeted for 2024. The proceeds from this agreement give us the opportunity to fund other growth opportunities elsewhere in the portfolio with no shareholder dilution. Also, at 3B/4B, we applied for environmental authorization to undertake further drilling exploration activities as we believe that the licence holds significant potential to be explored by the joint venture partnership in South Africa.

"Namibia continues to produce globally significant hydrocarbon discoveries, and as a sizable licence holder in the region, Eco continues to benefit from heightened levels of industry interest in the area.

"As a board and management team, we continue to assess and progress value accretive opportunities across our portfolio, with the goal of delivering substantial shareholder returns over the medium to long term.

"We remain excited about our prospects, and I look forward to providing further updates to the markets during the remainder of the year."

Issue of Azinam shares, admission and total voting rights

In addition, further to the company's announcement of Nov. 29, 2022, regarding the closing of the acquisition of Azinam Group Ltd. and in accordance with the previously announced share purchase agreement, the company has received TSX Venture Exchange approval to issue the balance of 1,625,000 common shares to the previous shareholders of Azinam representing the full and final number of common shares to be issued in respect of this transaction.

Application has been made for admission of the 1,625,000 Azinam shares, which will rank pari passu with existing common shares, to trading on the Alternative Investment Market. It is expected that admission will become effective and trading in the Azinam shares will commence, on or around 8 a.m. on Aug. 2, 2023.

On admission, the enlarged issued share capital of the company will be 370,173,680 common shares. The above figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the company.

The company's audited financial statement for the year ended March 31, 2023, is available for download on the company's website or on SEDAR.

About Eco (Atlantic) Oil & Gas Ltd.

Eco (Atlantic) is a TSX Venture Exchange and AIM-quoted Atlantic margin-focused oil and gas exploration company with offshore licence interests in Guyana, Namibia and South Africa. Eco aims to deliver material value for its stakeholders through its role in the energy transition to explore for low carbon intensity oil and gas in stable emerging markets close to infrastructure.

Offshore Guyana in the proven Guyana-Suriname basin, the company holds a 15-per-cent working interest in the 1,800-square-kilometre Orinduik block operated by Tullow Oil. In Namibia, the company holds operatorship and an 85-per-cent working interest in four offshore petroleum licences: PELs 97, 98, 99 and 100, representing a combined area of 28,593 square km, in the Walvis basin.

Offshore South Africa, Eco is operator and holds a 50-per-cent working interest in block 2B and a 26.25-per-cent working interest in block 3B/4B operated by Africa Oil Corp., totalling about 20,643 square km.

We seek Safe Harbor.