The latest disclosure

Eco (Atlantic) Oil & Gas (LSE:ECO) told the market on 9 November 2026 that it had received notice of the exercise of 300,000 share Options at CAD 0.50 each, raising CAD 150,000, or about US$106,500. The new shares are expected to be admitted to AIM and the TSX Venture Exchange on or around 13 November, after which the company will have 368,209,027 common shares in issue.

The sum is small, but it is the latest in a sequence of transactions since the summer that have added cash and reduced Eco's own spending commitments. Taken together, they show an explorer leaning on share investors and farm-out partners, rather than debt, to keep a multi-country portfolio moving.

About the company

Eco (Atlantic) Oil & Gas is an oil and gas exploration company listed on AIM and the TSX Venture Exchange. It has no production, so its value depends on the licences it holds, the quality of its partners and the results of future drilling. Its portfolio is spread across the Atlantic margin, with interests in Guyana, Namibia and South Africa, and a new position in the North Falklands Basin through its Acquisition of JHI.

Exploration companies fund themselves by raising Capital and by farming out interests to larger partners, who pay a share of costs in return for a stake. Eco's recent transactions follow both routes.

Who Eco is

LSE:ECO is a dual-listed explorer with offshore interests in Guyana, Namibia and South Africa, plus an emerging position in the North Falklands Basin through its acquisition of JHI. It has no production at present, so its value rests on licences, partners and the prospect of future drilling.

The share-funding side

On 13 October the company announced a direct subscription by two unnamed Israel-based institutional investors for 18 million new shares at 32.5p, raising US$7.7 million, or about £5.9 million. The shares represented roughly 4.9% of the enlarged capital and completed on 19 October. Chief executive Gil Holzman said the money strengthened the group's position as it progressed licences in Guyana, Namibia and South Africa. The announcement did not allocate the proceeds to specific projects.

That came on top of audited results for the year to 31 March 2026, which showed cash of US$10.75 million, no Debt and Working Capital of about US$8.9 million. The net loss widened to US$7.51 million, of which US$4.97 million was a non-cash charge on Warrant valuations. Option exercises after the year end had brought in a further US$0.57 million by the July results.

The farm-out side

Partner deals matter as much as fresh capital. In Namibia, final ministerial approval was announced on 2 October for bp to take a 60% interest in licences PEL 97, 99 and 100, leaving Eco with 25%. LSE:ECO is due US$2.7 million in cash and bp will carry its retained share through the current exploration phase, which includes seismic reprocessing and new 3D acquisition.

In South Africa, the farm-down of Block 1 CBK to Navitas Petroleum completed on 22 September; the results statement had said completion required a US$4.0 million cash payment and regulatory approvals. On Block 3B/4B Eco is carried through the first two wells, with US$11.5 million more due on final permit and the first spud.

The combined effect is to shift much of the exploration spending onto larger partners while Eco keeps minority exposure to any discovery. For a company of its size, that structure lets a modest cash balance stretch further, at the cost of a smaller share of eventual success.

Risks and dependencies

Cash is only one part of the picture. Several value triggers depend on others: environmental appeals must conclude before drilling on Block 3B/4B, a new Guyana licence was still under negotiation at the July results, and Navitas's proposed 65% farm-in to Falklands licence PL001 was described as non-binding. Share issues dilute existing holders, and the warrant Liability can swing reported results.

What the cash and share data show

The audited accounts for the year to 31 March 2026 reported cash of US$10.75m, no debt and working capital of about US$8.9m. Since then, the US$7.7m subscription, the option exercises and the expected US$2.7m from bp and US$4.0m from Navitas have added or will add to the position. The new shares to be issued on option exercise at CAD 0.50 are a small contribution, but they show that option holders are willing to exercise at that price, which brings in cash without a separate financing.

After the latest admission, the company will have 368,209,027 common shares in issue. The subscription of 18 million shares represented about 4.9% of the enlarged capital, which gives a sense of the dilution from that raise.

Understanding the carry arrangements

In farm-outs, a carry means that the incoming partner pays some or all of the retained interest's costs during a defined phase. In Namibia, bp will carry Eco's 25% share through the current exploration phase, which includes seismic reprocessing and 3D acquisition. On Block 3B/4B in South Africa, Eco is carried through the first two wells. The effect is to reduce Eco's cash requirement during the most expensive stage of exploration, at the cost of owning a smaller share of any discovery.

The US$11.5m due on final permit and the first spud on Block 3B/4B is contingent on events outside the company's control, as the environmental appeals must conclude before drilling can begin.

Reported results and non-cash items

The net loss of US$7.51m for the year to March included a US$4.97m non-cash charge on warrant valuations. Warrants are valued using the share price, so a higher share price increases the liability and the reported loss, even though no cash leaves the company. The remaining loss of about US$2.54m is closer to the underlying cost of running the business. The shift to semi-annual reporting will reduce the number of formal reporting dates, with the next statements covering the six months to 30 September 2026.

What comes next

Investors will watch for confirmation that the bp transaction has completed and the US$2.7 million received, any update on the Guyana licence, and progress on South African drilling permits.