Mr. Gil Holzman reports

ECO (ATLANTIC) OIL AND GAS LTD. ANNOUNCES RESULTS FOR THREE-MONTH PERIOD ENDED 30 JUNE 2024

Eco (Atlantic) Oil & Gas Ltd. has released its unaudited results for the three-month period ended June 30, 2024. All dollar amounts are in U.S. dollars, unless otherwise stated.

Highlights

Financials:

• The company had cash and cash equivalents of $1,185,000 and no debt as at June 30, 2024.
• The company had total assets of $29.65-million, total liabilities of $791,000 and total equity of $28,859,000 as at June 30, 2024.

Postperiod-end:

• Following the completion of a farmdown of a 13.75-per-cent participating interest in block 3B/4B offshore the Republic of South Africa, as announced on Aug. 28, 2024, Eco is due to receive now $8.3-million from the JV partners as part of the milestone payments agreed in the 3B/4B transaction. This is expected to give Eco a cash and cash equivalents position of over $9-million on receipt, expected in early September, 2024.

Operations

South Africa

Block 1 (postperiod-end):

• On June 5, 2024, Eco announced the farm-in into block 1 offshore the South Africa Orange basin. Through Azinam South Africa, the company will farm in and acquire a 75-per-cent working interest (WI) from Tosaco Energy Pty. Ltd. and will become operator of a new exploration right.

Block 3B/4B:

• In July, 2024, Eco signed 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 approximately $11.5-million (Canadian) at the time of agreement). 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. Closing is expected to occur in Q4 (fourth quarter) 2024.

Postperiod-end:

• On Aug. 28, 2024, the company announced the completion of a farmdown of a 13.75-per-cent participating interest in block 3B/4B offshore the Republic of South Africa and transfer of operatorship of the block after receipt of the requisite regulatory approvals (Section 11) from the government of South Africa. Eco now holds a 6.25-per-cent interest in block 3B/4B.
• Further to the company's announcement on March 6, 2024, detailing the farmout agreement (FOA), Azinam Ltd., Eco's wholly owned subsidiary, has farmed down a 13.75-per-cent participating interest in block 3B/4B, offshore the Republic of South Africa as part of an aggregate 57-per-cent farmdown transaction along with its joint venture partners Africa Oil S.A. Corp. and Ricocure Pty. Ltd. to TotalEnergies EP South Africa S.A.S., which will become operator, and QatarEnergy International E&P LLC.
• Following completion, Eco is now due to receive $8.3-million in total as part of the 3B/4B transaction, including completion linked milestone payments of $4-million from Africa Oil and $1.56-million from Ricocure, as referred to in the company's announcement of March 6, 2024. Further payments, amounting to $11.5-million, will be payable to Eco from TotalEnergies, QatarEnergy and Africa Oil on spudding of the first exploration well.

Block 2B:

• 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 (PELs): 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 kiloimetres in the Walvis basin.
• Eco added approximately 1,383 kilometres of 2-D data licensed on PEL100 (Tamar block) to its database, which are 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 is encouraged to see the growing activity surrounding its acreage, notably ExxonMobil's plans for a seventh development at Hammerhead in the Stabroek block.

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

"We continued to make significant progress across our asset base during the period. On block 3B/4B, we announced the completion of Eco's farmout agreement with TotalEnergies and QatarEnergy, which will see Eco receiving $8.3-million now and additional $11.5-million in the future while maintaining a material fully carried interest in the block.

"We also announced Eco's transaction with AOI, where the company sold a 1-per-cent interest in block 3B/4B in exchange for cancellation of all of Africa Oil's shares and warrants in Eco amount to 15 per cent of the company. Eco continues to possess significant upside potential and exposure to assets in the Orange basin offshore South Africa, a hugely exciting region for hydrocarbon prospectivity.

"Our active farmout processes in both Namibia and Guyana have seen Eco actively engaged with a number of potential high-calibre partners as we work to monetize these licences as fast as is practically possible for the benefit of all involved. We look forward to providing updates on material developments to all our stakeholders over the coming months."

The company's unaudited financial results and management's discussion and analysis for the three months ended June 30, 2024, are available for download on the company's website and on SEDAR+.

The attached table is the company's income statement.

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 6.25-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.

We seek Safe Harbor.