Eco Atlantic Announces Q2 2025 Financial Results and CFO Appointment

Eco Atlantic Q2 2025: cash, catalysts and a new CFO

Eco (Atlantic) Oil and Gas has reported its unaudited numbers for the three months to 30 June 2025 and confirmed a CFO handover. The quarter was about tightening the balance sheet, locking in operatorship on a big South African block, and keeping farm-out conversations alive in Namibia and Guyana.

Here is what stood out and why it matters if you are holding, watching, or trading ECO.

Key numbers at a glance

Metric	Q2 2025	Prior/Comparator
Cash and cash equivalents	US$3.6 million	US$4.7 million at 31 March 2025
Total assets	US$20.4 million	US$21.6 million at 31 March 2025
Total liabilities	US$1.5 million	US$1.2 million at 31 March 2025
Total equity	US$19.0 million	US$20.4 million at 31 March 2025
Debt	None	None
Net loss	US$1.6 million	US$1.1 million (Q2 2024)
Basic and diluted loss per share	US$(0.005)	US$(0.003) (Q2 2024)
Operating cash outflow	US$0.88 million	US$1.60 million (Q2 2024)
Quarterly decrease in cash	US$1.11 million	US$1.75 million (Q2 2024)
Weighted average shares	315,231,936	370,173,680 (Q2 2024)

Balance sheet: clean, modest and fully warrant-free

Eco finished the quarter with US$3.6 million of cash and no debt. Total liabilities are a lean US$1.5 million, which keeps financial risk low while the company progresses its portfolio. All warrants have now been cancelled or expired, removing a potential source of future dilution and closing out the equity overhang.

Cash fell by US$1.1 million during the quarter, reflecting operating costs and modest investment spend (US$225,000 on asset interests). At that pace of outflow, the current cash balance supports several quarters of activity, with the obvious caveat that exploration steps can change the spend profile quickly.

Income statement: higher operating spend, lower dilution

The quarterly net loss widened to US$1.6 million from US$1.1 million a year ago, driven mainly by higher operating costs (US$947,235 vs US$541,686) and the addition of share-based compensation (US$141,069). Interest income was a small US$15,980.

Importantly for shareholders, the weighted average share count fell to 315.2 million from 370.2 million, helped by the January transaction that saw 54,941,744 shares and 4,864,865 warrants cancelled in exchange for a 1% interest in Block 3B/4B. Fewer shares soften the blow of losses and reduce future dilution.

South Africa: operatorship in the Orange Basin and JV milestone potential

Block 1 – title granted, Eco in the driving seat

Eco now holds the Governmental Title Award, Exploration Right and operatorship for Block 1 offshore South Africa, with a 75% interest. Being operator matters: it gives Eco control over the work programme, timelines and farm-out terms. The Orange Basin has been the hottest offshore postcode globally in recent years, and Block 1 sits in that fairway.

Block 3B/4B – cleaner cap table and contingent cash

In January, Eco completed a deal with Africa Oil Corp. (now Meren Energy Inc.) to sell a 1% participating interest in Block 3B/4B in exchange for cancelling those shares and warrants noted above (valued at approximately C$11.3 million). The company also reiterates that it is due to receive an additional US$11.5 million from Block 3B/4B JV partners upon reaching certain milestones. That is not cash-in-hand today, but it is a meaningful potential top-up that could extend the runway without fresh equity.

Namibia: farm-out interest building

Eco reports “considerable interest” in its Namibian licences and is assessing options for progressing the work programmes, potentially via a farm-out. A farm-out is where a partner funds exploration in return for a stake – a neat way to advance high-impact acreage while preserving cash. No terms, counterparties or timelines are disclosed, but the tone suggests an active market.

Guyana: Orinduik farm-out and heavy oil appraisal under review

In Guyana, Eco continues an active farm-out process on the 100% working interest Orinduik Block and is evaluating the Jethro and Joe heavy oil discoveries to determine the right appraisal approach. Again, no specifics are given, but bringing in a partner would be the logical next step to share cost and risk.

Management change: new CFO, continuity of finance leadership

Long-standing CFO Alan Rootenberg is retiring after serving since 2011. Eco has appointed Gadi Levin as CFO, effective 2 September 2025. Gadi is a chartered accountant with over 20 years’ experience and has been Eco’s Finance Director since 2016, so this is continuity rather than a reset. For investors, continuity reduces execution risk during an active period of deal-making and work programme planning.

What I like and what gives me pause

Positives

• Clean balance sheet – US$3.6 million cash, no debt, and no warrants outstanding.
• Operatorship secured at Block 1 in the Orange Basin, improving strategic control and farm-out leverage.
• Shareholder-friendly 3B/4B transaction shrank the share base and removed warrants.
• Potential US$11.5 million milestone receipts at 3B/4B could materially extend cash runway.
• Active farm-out dialogues in Namibia and Guyana to offset capital intensity.

Watch-outs

• Quarterly loss increased to US$1.6 million; operating costs stepped up year-on-year.
• Cash fell by US$1.1 million in the quarter – funding the next phase still hinges on farm-outs or milestone receipts.
• Milestone payments are contingent – timings and certainty are not disclosed.
• No operational timelines for drilling or seismic disclosed this quarter.

Catalysts to watch for H2 2025

• Farm-out agreements or work programme updates on Block 1, South Africa.
• Confirmation of any 3B/4B milestone triggers and associated US$11.5 million receipts.
• Namibia farm-out or licence progression steps.
• Guyana Orinduik farm-out and any appraisal plan for Jethro/Joe heavy oil.

My take: a tighter equity story with clear optionality

This is a tidy set of housekeeping updates backed by real strategic progress. The balance sheet is light but clean, the cap table is simpler thanks to cancelled warrants and shares, and Eco now has operatorship in a prime Orange Basin address. If the US$11.5 million in JV milestone payments land and one of the farm-outs gets inked, the valuation debate could shift quickly from cash runway to resource potential.

For now, it is still about execution: converting interest into signed deals and setting a visible path to the next subsurface catalysts. On that score, today’s RNS reads constructive. I would call the update net positive, with the usual small-cap exploration caveat – timing and funding are everything until the rigs turn.