Mr. Gil Holzman reports

ECO (ATLANTIC) OIL AND GAS LTD ANNOUNCES RESULTS FOR THE THREE MONTHS ENDED 30 JUNE 2020

Eco (Atlantic) Oil & Gas Ltd. has released its results for the three months ended June 30, 2020, alongside a corporate and operational update.

Results highlights:

Financials:

• As at June 30, 2020, the company had cash and cash equivalents of $17.9-million (U.S.) with zero debt and remains fully financed for its share (15-per-cent working interest net) of further appraisal and exploration drilling at Orinduik block offshore Guyana of up to three wells at $120-million (U.S.) (gross).
• As at June 30, 2020, Eco had total assets of $19.2-million (U.S.), total liabilities of $372,138 (U.S.) and total equity of $18.8-million (U.S.).
• The company had a 58-per-cent cost reduction this quarter in response to COVID-19 strict cost-cutting measures taken as of April, 2020.
• The company has changed its presentation currency from Canadian dollars to U.S. dollars to better reflect the business activities and future operations, which will be predominantly in U.S. dollars, and to improve investors' ability to compare the company's results to its industry peers.

Operations -- Guyana:

• The Orinduik JV partners are further defining the Orinduik geological modelling, previous discoveries, prospects maturation and drilling targets selection. The partners are also reviewing and incorporating the latest Kanuku block Carapa-1 light oil discovery updip and behind Orinduik and additional regional exploration information into the models. The intention is to provide further definition to the Cretaceous interpretation and target selection for drilling.
• On June 30, 2020, the company and its partners on the licence approved a budget in the amount of approximately $5-million (U.S.) through to Dec. 31, 2020, for 3-D reprocessing based on new regional results and target selection. The company's share of this budget is $750,000 (U.S.).

Outlook

Guyana:

• Alongside its JV partners, multiple drilling prospects on the licence are currently being reviewed. High-graded candidates will be considered for the next drilling program.
• Eco remains fully financed for a further drilling program on the Orinduik block and, subject to JV partner approval, anticipates drilling at least two exploration wells into light oil cretaceous targets in 2021. Further updates on this matter will be made as appropriate.

The Orinduik JV partners are Eco Atlantic (15-per-cent working interest (WI)), Tullow Guyana BV (operator, 60-per-cent WI) and Total E&P Guyana BV (25-per-cent WI).

Namibia:

• Eco continues to benefit from a strategically significant acreage position in country and is progressing its various work programs offshore Namibia. The company is witnessing an increased interest from multiple IOCs in Namibia.
• The company continues to monitor upcoming drilling activity in the region, which could potentially see up to five exploration wells drilled on behalf of ExxonMobil, Total, Maurel & Prom, Shell and ReconAfrica in the next 12 months, expected to start the fourth quarter of 2020.

Corporate:

• Due to the COVID-19 pandemic and lower oil price environment, Eco took decisive action to quickly reduce costs throughout the business.
• The company has decreased its total non-exploration expenses, including general and administration expense and compensation costs incurred during the three months ended June 30, 2020 (Q1 2021), when compared with the three months ended March 31, 2020 (Q4 2020), by 58 per cent.
• The action generated material significant savings and has ensured the business remains well capitalized, with no debt on the balance sheet, for its 2021 drilling and exploration plans.

Gil Holzman, president and chief executive officer of Eco Atlantic, commented: "The company has made significant strides towards advancing its asset portfolio in 2020. Due to the actions taken, Eco remains well capitalized and fully financed for a further drilling campaign in Guyana and additional activity elsewhere.

"In Guyana, we have made excellent progress with high-grading and further defining multiple highly prospective drilling prospects. Alongside our JV partners, we firmly believe in the upside potential of the block and we look forward to recommencing drilling activity in 2021. We look forward to updating the market on our plans in the coming months.

"In Namibia, we continue to see increasing interest in the country's offshore oil potential, especially with another set of exploration wells planned by other operators over the coming 12 months. We have an important strategic acreage position offshore Namibia and expect any successful drilling activity in the region to benefit us.

"Despite the challenging macro backdrop, Eco has a resilient business model and has taken decisive action to preserve the company's liquidity. We continue to benefit from strategically important acreage positions in two exploration hot spots and from a strong partnership and co-operation with our biggest shareholder, Africa Oil Corp., and I look forward to updating the market on developments over the coming months."

The company's unaudited financial results for three months ended June 30, 2020, together with management's discussion and analysis for the three months to June 30, 2020, are available to download on the company's website and on SEDAR.

                                       INCOME STATEMENT 
                                                                  Three months ended June 30 
                                                                 2020                   2019
Revenue
Interest income                                               $28,409               $126,931
                                                               28,409                126,931
Operating expenses
Compensation costs                                            172,304                161,692
Professional fees                                              32,615                 18,083
Operating costs                                               519,677              6,173,380
General and administrative costs                               87,003                394,083
Share-based compensation                                       12,643                 43,999
Foreign exchange (gain) loss                                    9,033                (36,888)
Total expenses                                                833,275              6,754,349
Net (loss) and comprehensive (loss)                          (804,866)            (6,627,418)
Basic and diluted net (loss) per share
attributable to equity holders of the parent                    (0.00)                 (0.04)

About Eco (Atlantic) Oil & Gas Ltd.

Eco Atlantic has interests in Guyana and Namibia, where significant oil discoveries have been made.

The group aims to deliver material value for its stakeholders through oil exploration, appraisal and development activities in stable emerging markets, in partnership with major oil companies, including Tullow, Total and Azinam.