Mr. Gil Holzman reports

ECO (ATLANTIC) OIL AND GAS LTD ANNOUNCES RESULTS FOR THE THREE MONTHS ENDED 30 JUNE 2023

Eco (Atlantic) Oil & Gas Ltd. has released its results for the three months ended June 30, 2023.

All amounts are in United States dollars, unless otherwise stated.

Highlights

Financials (as at June 30, 2023):

• The company had cash and cash equivalents of $2.4-million, and no debt.
• Eco has cash and cash equivalents of $4.7-million as at Aug. 30, 2023.
• The company had total assets of $53.31-million, total liabilities of $3.56-million and total equity of $49.75-million.

Operations:

• Guyana:
  • Postperiod end, on Aug. 10, 2023, the company signed a sale purchase agreement for its wholly owned subsidiary, Eco Guyana Oil and Gas (Barbados) Ltd., to acquire a 60-per-cent operated interest in Orinduik block, offshore Guyana, through the acquisition of Tullow Guyana BV, a wholly owned subsidiary of Tullow Oil PLC, in exchange for a combination of upfront cash and contingent consideration.
  • Eco, via its wholly owned subsidiary Eco (Atlantic) Guyana Inc., currently holds a 15-per-cent working interest in the Orinduik block. On completion of the transaction, which is subject to certain market-standard conditions precedent, including customary government and joint venture (JV) partner approvals, Eco, as operator and majority interest holder in the Orinduik block, intends to drive the exploration process and focus on its strategy to attract new partners to join the licence and pro-actively engage in drilling.
• South Africa:
  • Block 3B/4B:
    • Postperiod end, on July 17, 2023, the company issued 1.2 million shares to the Lunn Family Trust in place of the $500,000 cash consideration due in respect of the acquisition of the 6.25-per-cent interest in block 3B/4B from the Lunn Family Trust, as previously announced on June 27, 2022.
    • On July 11, 2023, 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 in cash. On Aug. 14, 2023, the parties signed the final assignment and transfer agreement. Additional $2.5-million cash consideration is expected to be received upon government of South Africa approval of the transfer, with the initial consideration of $2.5-million already having been received.
    • In March, 2023, Africa Oil released a new competent person's resource report confirming that the block contains an estimated P50 prospective resource of approximately four billion barrels of oil equivalent (bo), one billion BOE net to Eco Atlantic prior to the sale of the aforementioned participating interest, which is expected to complete shortly.
    • 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.

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

"Our Q1 results serve as an important opportunity to remind investors of the strategic work which is happening across all areas of the portfolio. Recently announced deals in both South Africa and Guyana are examples of the team's efforts to position the portfolio to continue creating high-impact catalysts for investors. I am excited for the future and look forward to progressing our work programs across our entire Atlantic margin portfolio."

The company's unaudited financial results, and management's discussion and analysis, for the three months ended June 30, 2023, are available for download on the company's website and 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.