Mr. Gil Holzman reports

ECO (ATLANTIC) OIL AND GAS LTD ANNOUNCES UNAUDITED RESULTS AND CORPORATE UPDATE

Eco (Atlantic) Oil & Gas Ltd. has released its results for the three and nine months ended Dec. 31, 2023.

Highlights

Financials (as at Dec. 31, 2023):

• The company had cash and cash equivalents of $2.2-million (U.S.) and no debt as at Dec. 31, 2023.
• The company had total assets of $49.9-million (U.S.), total liabilities of $1.6-million (U.S.) and total equity of $48.3-million (U.S.) as at Dec. 31, 2023.

Operations:

• South Africa:
  • 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.
  • Block 3B/4B:
    • The joint venture (JV) partners continue to actively progress a farmout in conjunction with preparations for a two-well drilling campaign on the block. Further updates will be made as appropriate.
  • Postperiod end:
    • On Jan. 22, 2024, Eco's wholly owned subsidiary, Azinam Ltd., received final government approval for the farm out of its 6.25-per-cent participating interest in block 3B/4B to Africa Oil Corp., announced on July 11, 2023. As per the teams of the assignment and transfer agreement, Eco received further payment of $2.5-million from Africa Oil.
• Namibia:
  • Following continued drilling success in the area, Eco continues to receive significant interest in its strategic acreage position in Namibia.
  • The company continues to assess farmout opportunities with its four licences in the region and will update the market further as appropriate.
• Guyana:
  • As previously announced, on Nov. 15, 2023, the company received approval for the transfer of 60-per-cent working interest and operatorship in the Orinduik block, offshore Guyana, from the government.
  • Within the period, Eco became operator of the Orinduik block, holding, in aggregate, a 75-per-cent participating interest via Eco Orinduik (60 per cent) and Eco (Atlantic) Guyana Inc. (15 per cent), following the closing of the acquisition of Tullow Guyana BV.
  • A formal farm-out process for the Orinduik block is under way and the company will provide further updates as appropriate.
  • Guyana remains one of the most prolific hydrocarbon basins in the world, continuing to yield sizable discoveries and attracting high levels of interest for exploration assets.
• Postperiod end:
  • On Jan. 22, 2024, Eco Orinduik gave notice to the Minister of Natural Resources of the Cooperative Republic of Guyana to enter the second phase of the second renewable period of the Orinduik licence, effective as of January, 2024, and TOQAP's decision to relinquish its 25-per-cent working interest. As a result, Eco currently holds 100-per-cent working interest in the block.

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

"Each asset within our exploration portfolio yields exciting opportunities and I am pleased to report continued progress across all fronts. Notably, government approval of our farm-out agreement of our 6.25-per-cent 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 farmout 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 farmout process.

"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 farmout process.

"The end of the period was marked by dynamic activity across our portfolio and we remain excited about the potential for the remainder of 2024."

The attached table is the company's income statements from the annual financial statements. All amounts are in United States 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.

Offshore Guyana, in the proven Guyana-Suriname basin, the company operates a 100-per-cent working interest in the 1,354-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, in the Orange basin, totalling approximately 20,643 square kilometres.