Eco Atlantic Oil & Gas Ltd. Prepares for Major Capital‑Raising Activity Ahead of AGM

Eco Atlantic Oil & Gas Ltd. (TSX‑V: EOG, AIM: ECO) announced on 20 January 2026 that it will conduct a direct equity subscription accompanied by a warrant issue. The move is intended to raise fresh capital to support the company’s exploration and development agenda across Namibia, Guyana and South Africa, while simultaneously providing shareholders with additional upside through warrants.

The equity subscription is slated for the same week as the company’s annual general meeting (AGM) scheduled for 27 March 2026 at 10:00 a.m. (EST) in Toronto. A formal notice of the AGM, together with proxy forms, was released via the company’s investor portal and confirmed by multiple financial‑news outlets. The AGM will serve as the platform for approving the capital‑raising transaction, reviewing the company’s exploration results, and outlining strategic objectives for the forthcoming year.

Transaction Structure

  • Direct Equity Subscription – Eco Atlantic will issue new shares directly to investors, bypassing a public offering route. The subscription will be managed by Canaccord Genuity Capital Markets and Berenberg, both of whom serve as joint brokers in the transaction.
  • Warrant Issue – Alongside the equity issuance, the company will offer warrants that grant holders the right to purchase additional shares at a predetermined price within a specified period. The warrants provide a levered exposure to the company’s potential upside while preserving the initial capital raise for operational purposes.

The announcement, which was distributed through a press release on the company’s website and disseminated by PR firm Celicourt, was flagged as “NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION” outside specific jurisdictions, underscoring the controlled nature of the offering.

Strategic Rationale

Eco Atlantic’s core focus lies in offshore Atlantic margins, where it holds significant interests:

  • Guyana – 100 % working interest in the 1,354 km² Orinduik Block within the proven Guyana‑Suriname basin.
  • Namibia – Operatorship and an 85 % working interest in three offshore petroleum licences (PELs 97, 99, 100), covering 22.89 km².
  • South Africa – Offshore licence holdings that complement the company’s portfolio in the region.

The capital injection will accelerate drilling programmes, expand the company’s footprint in high‑potential basins, and support the development of low‑carbon intensity oil and gas projects, aligning with the broader energy transition narrative.

Market Context

Eco Atlantic’s share price closed at CAD 0.52 on 21 January 2026, trailing a 52‑week low of CAD 0.125 and a 52‑week high of CAD 0.62. With a market cap of approximately CAD 167 million and a price‑to‑earnings ratio of ‑46.14, the company remains highly leveraged in terms of valuation metrics, reflecting the exploratory nature of its operations and the inherent risk profile of upstream development.

The direct equity and warrant issuance is a strategic step to mitigate dilution risk while enhancing shareholder value. By offering warrants, the company provides an attractive instrument for investors seeking leveraged exposure to potential upside without committing additional capital at the time of subscription.

Outlook

As Eco Atlantic navigates the complexities of offshore exploration and development, the AGM and accompanying capital raise will be pivotal. Successful execution of the transaction will furnish the company with the financial runway to pursue drilling and development milestones across its Atlantic portfolio. The subsequent AGM will allow shareholders to assess progress, vote on the transaction, and engage directly with management regarding the company’s vision for sustainable growth in emerging markets.

In a sector where capital allocation and risk management are paramount, Eco Atlantic’s coordinated approach to financing and governance signals a deliberate effort to balance shareholder interests with strategic development goals.