Eco (Atlantic) Oil & Gas Ltd. has assured that despite its recently implemented cost-cutting measures due to the COVID-19 pandemic, the company remains in a “robust position” to continue its exploration work in Guyana once market conditions improve.

In a market update on Wednesday, the company, which has a 15 per cent working interest in the Orinduik Block offshore Guyana, noted that both its employees and balance sheet remain in top condition.

“As at 31 March 2020, the company continues to benefit from its strong balance sheet, with cash and cash equivalents of CAD$26.5 million (US$18.8 million) and zero debt. Eco remains fully funded for its share of further appraisal and exploration drilling at Orinduik block offshore Guyana, up to US$120 million (gross). In light of the cost-cutting measures described above, preserving the Company’s significant cash balance, the Board believes Eco will be in a robust position to progress its exploration strategy when market conditions improve and operations are able to resume,” the Company stated.

Back in February 2020, Eco Atlantic announced that 22 prospects have been identified on the Orinduik Block including 11 leads in the Upper Cretaceous horizon. Eco Atlantic stated that the majority of the project leads have over a 30 per cent or better chance of success, enhanced by the recent discovery of light oil on the Kanuku block to the south of Orinduik.

The company said on Wednesday that it continues to monitor its operating budget for 2020 and to work closely with its partners to discuss and plan the next steps. It was proud to note that, to date, Eco has met all of its work commitments for 2020 under the various petroleum agreements offshore Guyana and Namibia, and thus only minimal costs are expected to be incurred over the remainder of the year.

Meanwhile, in light of the COVID-19 pandemic, Eco continues to take all of the recommended measures to protect the welfare of its personnel. “Ensuring the safety of employees remains a major priority for the business and the Company has taken steps to secure their health, safety and well-being at this difficult time. As such, Eco has curtailed all travel and has installed a Company-wide work-from-home policy until such time as government restrictions are lifted,” the Company stated.

Added to this, the Board and management are voluntarily taking pay cuts of up to 40 per cent starting in April 2020, which will be kept under review on a monthly basis thereafter.
Due to the recent lower oil price environment and current market conditions since February 2020, the Company has undertaken a strict cost-cutting programme across all aspects of the business. Aside from the necessary maintenance of certain operation, the programme includes termination of non-core services and cessation of business-related travel.