Mr. Gil Holzman reports

ECO (ATLANTIC) OIL AND GAS LTD ANNOUNCES AUDITED RESULTS FOR THE YEAR ENDED 31 MARCH 2024

Eco (Atlantic) Oil & Gas Ltd. has released its audited results for the year ended March 31, 2024.

Highlights

Financials (as at March 31, 2024):

• The company had cash and cash equivalents of $2.97-million (U.S.) and no debt as at March 31, 2024.
  • Following a significant reduction in costs (including G&A (general and administrative), professional fees and operating expenses) as of the time of publication, Eco has a cash position of approximately $1.5-million (U.S.).
• The company had total assets of $31.3-million (U.S.), total liabilities of $1.25-million (U.S.) and total equity of $30.0-million (U.S.) as at March 31, 2024.

Postperiod-end

• Following the successful farm-out deal of Block 3B/4B, Eco expects to receive a first tranche of $8.3-million (U.S.) during August, 2024, subject to customary closing conditions being met. The resultant proceeds are expected to give Eco a cash and cash equivalents position of approximately $10-million (U.S.), with no near-term capital commitments for operational expenses.

Operations

South Africa

Block 1 (postperiod-end):

• In June, 2024, Eco announced a farm-in into Block 1 offshore South Africa Orange basin. The company will acquire a 75-per-cent working interest (WI) from Tosaco Energy Pty. Ltd. and will become operator of a new exploration right.
• Block 1 has significant 2-D and 3-D seismic data already completed and no additional seismic acquisition or drilling of wells is committed in the three-year carried period. Eco intends to complete the interpretation and analysis required for its planned work program with its in-house exploration team. The farm-in is subject, inter alia, to normal governmental approvals and no field activity is currently planned that requires environmental permitting.

Block 3B/4B

• In March, 2024, Eco and its JV (joint venture) partners signed a farmout transaction with TotalEnergies EP South Africa B.V., who will become operator (TotalEnergies) and QatarEnergy International E&P LLC (QatarEnergy). Under the agreement, Eco would retain a 13.75-per-cent participating interest in Block 3B/4B, offshore the Republic of South Africa.

Postperiod-end

• On July 29, 2024, the company announced the signing of an agreement to sell a 1-per-cent interest in Block 3B/4B in exchange for cancellation of all of Africa Oil's shares and warrants in Eco (worth $11.5-million). Upon completion of the transaction, Eco will hold a fully carried 5.25-per-cent interest in Block 3B/4B offshore South Africa, reducing from the current 6.25 per cent.
• Upon closing, which is expected to occur in August, 2024, Total will assume operatorship and will lead the drilling planning and preparations.

Block 2B (postperiod-end)

• In June, 2024, the company relinquished its 50-per-cent WI operated offshore Block 2B where it drilled its 2022 Gazania-1 well offsetting the AJ-1 oil discovery. The company has completed all necessary documentation, and environmental audits, and has informed the Petroleum Agency of South Africa (PASA), the regulator for the government of South Africa.

Namibia

• A multiblock farmout process remains under way for all or part of Eco's four offshore petroleum exploration licences (PEL): 97, 98, 99 and 100. Eco holds operatorship and an 85-per-cent working interest in each PEL representing a combined area of 28,593 square kilometres in the Walvis basin.

Postperiod-end

• Eco added about 1,383 km 2-D data licensed on PEL100 (Tamar block) to its database, which is being technically evaluated and interpreted by the team to define additional seismic acquisition areas within the block, along with new leads and prospects.

Guyana

• An active farmout process continues for the offshore Orinduik block. Eco was encouraged to note the recent news from neighbouring Stabroek block, where the operator ExxonMobil is planning for a seventh development at Hammerhead.

Investor meet company

• Gil Holzman, president and chief executive officer, will provide an annual results investor update via investor meet company today at 2 p.m. (BST). The presentation is open to all existing and potential shareholders and questions can be asked at any time during the live presentation. More information about the presentation can be found in the company's announcement of July 24, 2024.

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

"We made considerable progress across our asset portfolio during the financial year to March 31, 2024. This has been achieved at a time when we have had a strict focus on costs, which has seen the company operate with non-dilutive financings for the last two years, and agree a farmout on Block 3B/4B which will significantly increase our cash resources, and leaves tremendous upside potential on the table in the event a discovery is drilled on the block.

"In Namibia and Guyana, we have active farmout processes under way, and we are very upbeat about the number and caliber of the companies we have had in our data rooms. Both jurisdictions remain at the forefront of global hydrocarbon exploration and we are confident of delivering a positive update on both in due course.

"We were also pleased to announce the deal with Africa Oil yesterday, which saw us agree the sale of a 1-per-cent interest in the block in exchange for the cancellation of all of AOI's shares and warrants in Eco, worth $11.5-million. We are grateful to Africa Oil for their support since 2017, and this agreement will enable us to eliminate a 16 per cent overhang in Eco's shares, which are locked up until the transaction closes and the shares and warrants are cancelled. I would also add that the deal was agreed using an $840-million (U.S.) valuation for Block 3B/4B, which values Eco's 5.25-per-cent holding at $44-million (U.S.).

"As ever, we continue to work hard to deliver value for all of our stakeholders and we look forward to providing further market updates in due course."

The company's audited financial statement for the year ended March 31, 2024, is available for download on the company's website and on SEDAR+.

The attached tables are the company's balance sheet, income statements, cash flow statement and selected notes 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 holds a 20-per-cent working interest in block 3B/4B and, pending government approval, a 75-per-cent operated interest in block 1 in the Orange basin, totalling approximately 37,510 square kilometres.