Mr. Gil Holzman reports

ECO (ATLANTIC) OIL AND GAS LTD. ANNOUNCES RESULTS FOR THREE & SIX MONTHS ENDED 30 SEPT 2023

Eco (Atlantic) Oil & Gas Ltd. has released its results for the three- and six-month periods ended Sept. 30, 2023. All amounts are in U.S. dollars, unless otherwise stated.

Highlights

Financials (as at Sept. 30, 2023):

• The company had cash and cash equivalents of $3.85-million and no debt.
• The company had total assets of $51-million, total liabilities of $1.71-million and total equity of $49.30-million.

Operations

Guyana:

• 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.

Subsequent to period-end:

• On Nov. 15, 2023, Eco announced that the company had received government approval for the transfer of 60-per-cent working interest and Operatorship in the offshore Orinduik block in Guyana from the Minister of Natural Resources, Cooperative Republic of Guyana.
• On Nov. 21, 2023, the company announced completion of the transaction, upon which Eco became the designated operator of the Orinduik block and increased its aggregate participating interest to 75 per cent, held via Eco Orinduik BV (60 per cent) and Eco (Atlantic) Guyana Inc. (15 per cent). TOQAP Guyana BV continues to hold a participating interest of 25 per cent.
• A formal farmout process for the Orinduik block has commenced and the company expects to provide further updates in due course.

South Africa

Block 3B/4:

• 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 SA approval of the transfer, with the initial consideration of $2.5-million already having been received.
• Government of SA approval and therefore the $2.5-million cash payment from Africa Oil are expected to be received by year-end 2023.
• The joint venture partners continue to progress a farmout, in conjunction with preparations for a two-well drilling campaign on the block. Further updates will be made as appropriate.

Block 2B:

• Eco has applied for a production right application to the Petroleum Agency of South Africa, for block 2B, and continues to assess opportunities available to deliver value from this licence for the benefit of stakeholders.

Namibia:

• Following media reports that significant multiwell drilling campaigns are about to be undertaken offshore Namibia, 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.

Board changes:

• Subsequent to period-end, on Oct. 9, 2023, the company announced the appointment of Alice Carroll and Selma Usiku as executive and non-executive directors, respectively, of the company with immediate effect, with Helmut Angula retiring from the board.

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

"We have made progress on all fronts across our exploration portfolio in 2023. The most notable development was the acquisition of a 60-per-cent working interest in the Orinduik block, offshore Guyana, from a subsidiary of Tullow Oil PLC. This transaction made Eco the operator of the licence and brings our total stake in the block to 75 per cent. We have already commenced with a farmout process and opened a data room, receiving early interest from a number of multinational oil and gas companies.

"Also, offshore South Africa, we continue to progress plans for a two-well campaign on block 3B/4B in parallel to continuing farmout discussions with various large industry partners. In Namibia, we continue to receive incoming interest with regard to our highly strategic acreage position, which has increased following recent media reports of multiwell drilling campaigns being lined up.

"In closing, the last two quarters of 2023 have been a highly active period for us, and we look forward to sharing further updates on the ongoing farmout workstreams and drilling plans with our stakeholders as and when we are in a position to do so."

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

Herein are the company's balance sheet, income statements, cash flow statement and selected notes from the annual financial statements. All amounts are in U.S. dollars, unless otherwise stated.

About Eco (Atlantic) Oil & Gas Ltd.

Eco Atlantic is a TSX Venture Exchange- and Alternative Investment Market-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.

We seek Safe Harbor.