Mr. Gil Holzman reports

ECO (ATLANTIC) OIL AND GAS LTD. ANNOUNCES APPROVAL OF 6.25% FARM OUT OF 3B/4B, GUYANA UPDATE

Eco (Atlantic) Oil & Gas Ltd.'s wholly owned subsidiary, Azinam Ltd., has received final government approval for the farmout of its 6.25-per-cent participating interest in block 3B/4B to Africa Oil Corp., announced on July 11, 2023. The company also provides an operational update on entering the next licence phase for Orinduik block and confirms, further to its announcement of Jan. 2, 2024, that Dr. Oliver Quinn has been appointed as a non-executive director with immediate effect.

Final transaction approval

The South Africa Department of Mineral Resources and Energy (DMRE) and the Petroleum Agency South Africa (PASA) have now provided Section 11 approval to assign and transfer a 6.25-per-cent participating interest in block 3B/4B, offshore South Africa, to Africa Oil SA Corp., a wholly owned subsidiary of Africa Oil. The Section 11 approval was the final consent required in order to complete the transaction and, accordingly, all requisite regulatory approvals and deeds in respect of the transaction have now been signed and completed.

As per the terms of the assignment and transfer agreement with Africa Oil, Eco has received further payment of $2.5-million (U.S.) from Africa Oil. Under the terms of the agreement, upon a further farmout to a third party into block 3B/4B, Eco will receive a further payment of $4-million (U.S.) from Africa Oil and, when the first well is spudded, an additional $1.5-million (U.S.) will be due to the company from Africa Oil.

Orinduik licence operational update

As operator, Eco Orinduik BV gave notice to the Minister of Natural Resources of the Cooperative Republic of Guyana (MNR) to enter the second phase of the second renewal period of the Orinduik licence, effective as of Jan. 14, 2024. This second phase has a commitment to drill one exploration well to the Cretaceous formation during the remainder of the licence period, which ends on Jan. 13, 2026. Further, Eco advised MNR last week that TOQAP Guyana BV (the SPV joint entity held by TotalEnergies and QatarEnergy, 60:40) has relinquished their 25-per-cent WI (working interest) for strategic reasons, and will not participate in the next phase; the former TOQAP Guyana BV 25-per-cent WI will be assigned to Eco Guyana. Subject to the requisite government notifications, Eco will remain the operator, holding a 40-per-cent WI in the Orinduik licence as Eco Guyana and 60-per-cent WI as Eco Orinduik BV.

Non-executive director appointment

On Jan. 2, 2024, the company announced that Dr. Quinn had been elected as a director of the company, subject to completion of the due diligence by Strand Hanson, the company's nominated adviser, in accordance with the AIM Rules for Companies and Nominated Advisers. The company is pleased to confirm that the aforementioned process has now been completed and Dr. Quinn has been appointed to Eco's board, with immediate effect, as the nominee director of Africa Oil, which holds 14.84 per cent of the company's issued share capital.

Dr. Quinn was appointed as the chief commercial officer of Africa Oil in September, 2023, having previously been employed as senior vice-president, corporate development, at Kosmos Energy Ltd. Dr. Quinn started his career at Shell and has 19 years of experience in the oil and gas industry. He is a graduate of the University of Manchester, where he studied for a BSc (honours), environmental and resource geology, and a graduate of the University of Edinburgh where he completed a PhD in petroleum science. While Dr. Quinn replaces Keith Hill as Africa Oil's board nominee, the board is pleased to confirm that Mr. Hill has agreed to remain as a non-executive director of the company.

Gil Holzman, co-founder and chief executive officer of Eco Atlantic, commented:

"I am delighted to welcome Oliver to our board. His extensive technical and commercial experience are an excellent addition for our company entering into 2024, which is lining up to be a transitional year for the company.

"With respect to block 3B/4B, we are pleased to have received final approval from the South African government for our transaction with Africa Oil, which now paves the way to completing a further farmout in respect of the block and the drilling of our identified targets of up to five wells."

Colin Kinley, co-founder and chief operating officer of Eco Atlantic, commented:

"Knowing the material value and potential of Orinduik block, Eco acquired Tullow's 60-per-cent WI and has remained focused on drilling a massive, stacked pay interval in the southeastern quadrant of the block. Eco Atlantic, now approved operator, intends to bring in new partners and to drill the significant potential of the Cretaceous interval on the Guyana oil fairway. With this well commitment, we now move into planning and engineering preparations to drill in next 12 to 18 months.

"We feel extremely positive about the future of the Orinduik block, receiving significant interest from key industry partners and IOCs in our recently commenced farmout process. We will provide further updates to shareholders on operational and farmout progress throughout the year. Eco is grateful to the government of Guyana, and specifically the MNR, for their collaborative efforts and support in enabling Eco to now progress towards drilling."

Alternative Investment Market Rules for Companies, Schedule 2(g), disclosures

The associated table is provided in accordance with Paragraph (g) of Schedule 2 of the AIM Rules for Companies.

Dr. Quinn currently holds no direct interests in the company's common shares, although he holds 31,750 common shares and 234,300 options over common shares in Africa Oil, which is a 14.48-per-cent shareholder in the company.

There is no further information to be disclosed pursuant to Schedule 2(g) of the AIM Rules for Companies.

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.

Offshore Guyana, in the proven Guyana-Suriname basin, the company operates a 75-per-cent working interest in the 1,800-square-kilometre Orinduik block. 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 kilometres in the Walvis basin.

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