Eco Atlantic Oil & Gas Ltd (LON:ECO) has said it remains well placed to capitalise on its strategic acreage in prolific hydrocarbon provinces as it reported its half-year results,
The explorer is preparing for its next well in Guyana, expected in the second half of 2021. The envisaged well programme is fully funded.
Alongside partner Tullow Oil, the company is presently assessing options to drill at least two exploration wells in the light oil cretaceous targets as soon as practical.
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“With no debt and strong cash reserves, Eco remains fully funded for its further near-term drilling plans in Guyana and continues to evaluate additional value-enhancing opportunities,” said Gil Holzman, Eco chief executive in the results statement.
"In Guyana, arguably one the most attractive exploration and production regions in the world in the past five years, we are excited to recommence drilling activity in due course and we are aiming to define targets through reprocessing and we hope to have target selection in the next six months allowing us to begin drilling preparation in the second half of 2021," he added.
Elsewhere, in Namibia, the company highlighted a ramp-up in activity by other operators working towards new drill programmes.
“Namibia continues to become ever more attractive to the major players in the industry, and we look forward to an exciting year of activity in 2021 in-country and for Eco,” Holzman noted.
"Eco's resilient business model, along with its strong management, shareholders, and assets in prolific E&P hotpots, means the company is well-positioned to deliver value for shareholders going forward.
“We very much look forward to keeping the market up to speed on developments for the remainder of 2020 and into the New Year," he added.
In terms of its financials, Eco reported US$17.2mln of cash and equivalents as at the end of September 2020 and highlighted that it had no debt. It noted a 70% reduction in general and administrative expenses. Amidst the coronavirus pandemic, travel spending was down 82% and office costs were down 90%.
The pre-revenue exploration company reported a US$691,758 net loss for the six-month period.
