Eco (Atlantic) Oil and Gas Ltd. Announces Successful US$12.3 million Equity Fundraise - Seite 2

In aggregate, the Placing Shares and Subscription Shares represent 10.8% of the currently issued share capital of the Company and 9.8% of the Company's issued share capital as enlarged by the Equity Fundraise (both percentages stated prior to the issue of new Common Shares pursuant to the acquisition announced earlier today).

In connection with this Placing, Fox-Davies Capital Limited and Fox-Davies Capital (DIFC) Limited (together "Fox Davies") acted as the sole placement agent.

The Placing Shares and Subscription Shares will, when issued, be credited as fully paid and will rank pari passu in all respects with the existing Common Shares of the Company, including, without limitation, the right to receive all dividends and other distributions declared, made or paid after the date of issue.

Gil Holzman, Co-Founder and CEO of Eco Atlantic, commented:

"We are pleased to be able to close this successful private placing. We are fortunate to be able to include some of the leading South African focussed funds in this financing, thus supporting the regional efforts to become energy independent and to promote the local partners and oil and gas exploration efforts in South Africa. The funds we are raising will be applied to our ongoing operations and will enable us to settle the cash consideration for the increased interest in Block 3B/4B announced earlier today, allowing us to retain our current cash resources to drill Gazania-1 well in Block 2B in South Africa in September. In addition, the proceeds will also be used to expedite exploration activities on Block 3B/4B and prepare for potential wells next year in Guyana and South Africa. The proceeds of this fund raise strengthen the Group's cash resources following termination of the transaction with JHI and its cash component.

As always, we are thankful to Africa Oil, which is participating in this round with an investment of US$1.8m. With over U$38m now in treasury, we are in a very strong financial position to fund all our current planned exploration needs in both South Africa, Namibia and Guyana including the drilling of the Gazania-1 well in September and additional near-term wells on Guyana Orinduik Block and in Block 3B/4B."

Details of the Placing

The Placing and Subscription are conditional upon, inter alia, the placing agreement and subscription agreement, respectively, not being terminated in accordance with its terms.

Fox-Davies and the Company have today entered into an agreement with the Company in relation to the Placing (the "Placing Agreement").

The Placing is conditional on certain customary conditions taking place prior to certain dates including Admission by 30 June 2022 or such later date as is agreed but in any event not later than 8.00 a.m. in London, United Kingdom on 14 July 2022.