Eco Atlantic Oil & Gas (AIM:ECO) said in its FY20 results for the 12 month period ended 31 March 2020 that early action taken by the group has yielded significant savings during the pandemic.
The company said it has saved almost $1M in general and admin expenses, and public company costs and ended the period with C$26.48m of cash and equivalents.
“While COVID-19 has had a minor impact on our operations, given Eco's resilient business model and strong cash position, the Company is well placed to navigate the downturn and create significant value for shareholders,” said Gil Holzman, President and CEO of Eco.
Eco made two oil discoveries in 2019, Jethro-1 and Joe-1, on its Orinduik offshore petroleum license in Guyana, encountering high quality reservoirs containing mobile heavy crude.
Holzman said, “The oil we found is similar to other commercial heavy crudes that are planned for production in the area and in production across the world.
We remain upbeat about the considerable upside potential that the Orinduik licence possesses, particularly in the Cretaceous horizon which proved to bear light sweet oil in the neighbouring Stabroek and Kanuku Blocks.”
Following the drilling campaign, the group is now working closely with its joint venture partners to make other nearby discoveries and to determine its next drilling targets for 2021.
Shares in Eco Atlantic Oil & Gas opened flat at 20.75p on Monday morning.
It continues to monitor interest in Namibia, which it said could see up to 4 exploration wells drilled on behalf of ExxonMobil, Total, Maurel & Prom, and Shell in the next 12 months.
“We have a strategic acreage position in Namibia, which we believe will be highly valuable for us and for potential future partners as near-term further drilling activity in the region takes place,” said Holzman.
Eco remains fully funded for a further drilling programme on the Orinduik Block and plans to drill at least two exploration wells into light oil cretaceous targets in 2021 upon approval.
"Despite the current macro backdrop, we remain highly upbeat about the coming 12 months.
We have some of the most attractive acreage positions in two of the most exciting global regions for oil and gas exploration activity, a very strong block partners in Guyana and on the corporate level, and we are well funded to ramp up activity in both jurisdictions as well as other regional opportunities,” added Holzman.
Eco Atlantic holds a 15% working interest (“WI”) in Orinduik alongside JV partners Tullow Guyana B.V. ("Tullow") (Operator, 60% WI) and Total E&P Guyana B.V. ("Total") (25% WI).
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