26th Feb 2020 11:40
(Alliance News) - Exploration firm Eco Atlantic Oil & Gas Ltd on Wednesday said it swung to a third quarter loss but added it has enough cash to fund drilling at the Orinduik block offshore Guyana.
Shares in the company were down 15% at 29.50 pence each in London on Wednesday morning.
In the three months to December, Eco Atlantic reported a net loss of CAD3.3 million, about GBP1.9 million, from GBP14.4 million in the year prior. In the third quarter of the previous financial year, Eco Atlantic received CAD16.8 million from a farm-out agreement.
For the first nine months of its financial year, it swung to a net loss of CAD27.6 million from a CAD11.3 million profit.
Total expenses during the nine months period surged to CAD28.1 million from CAD5.6 million. The firm reported cash and cash equivalents of CAD25.4 million, with no debt.
Eco Atlantic said it is "fully funded for its share of further appraisal and exploration drilling at Orinduik block offshore Guyana".
The company holds a 15% interest in Orinduik. Total SA has a 25% stake and Tullow Oil PLC a 60% interest.
Chief Executive Gil Holzman said: "After completing a successful drilling campaign in 2019, we continue to benefit from a very strong balance sheet and remain fully funded to conduct further exploration and appraisal drilling activity on the Orinduik block.
"While it is Eco's intention, and there remains the potential, to conduct a drilling program later this year, the need to integrate the new data learned from recent discoveries in the region into our understanding of the block's geology may result in further drilling and appraisal activity taking place in the first half of 2021. However, a final decision on further drilling activity and the overall budget will be made in the coming months."
By Eric Cunha; [email protected]
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