Competent Persons Report for Certain Assets in Offshore Guyana Prepared in accordance with the AIM Note for Mining and Oil and Gas Companies Date of this Report: February 1, 2020 Prepared for: ECO (Atlantic) Oil & Gas Ltd Prepared By: Phone: 1-303-443-2209, Fax: 1-303-443-3156 E-mail: [email protected] Competent Persons Report for Certain Assets in Offshore Guyana Prepared in accordance with the AIM Note for Mining and Oil and Gas Companies Date of this Report: February 1, 2020 Prepared for: ECO (Atlantic) Oil & Gas Ltd Prepared By: Kevin S. Weller Registered Petroleum Engineer State of Colorado #34214 1. EXECUTIVE SUMMARY This report addresses the ECO (Atlantic) Oil and Gas Ltd (“ECO Atlantic”, “ECO”, “The Company”) exploratory and discovered oil and gas assets in offshore Guyana. The assets owned by ECO Atlantic are summarized in Table 1-1. The report covers only the assets on the Orinduik Block offshore Guyana and does not cover The Company’s assets in Namibia. Table 1-1 Summary of Assets owned by ECO (Atlantic) Oil and Gas Ltd Working License Water Asset Operator Interest Status Expiry Date Area Depth, (%) (km2)1 meters January 70 to Orinduik Block Tullow 15.0 Exploration 1,800 2026 1,450 This report is an update to the report dated March 15, 2019 and reflects a change in some of the parameters based on the results from the drilling of two of the Prospects, public information from offblock wells and additional Leads. Based on probabilistic estimates, the Gross (100%) and Net (15%) Unrisked Prospective Resources for the Orinduik Block offshore of Guyana in millions of barrels of oil equivalent (MMBOE6) are listed below in Table 1-2. This is based on a 6:1 gas to oil equivalency. The Gross Unrisked Prospective Oil and Gas Resources are presented in Table 1-3 and the Net Unrisked Prospective Resources for the Orinduik Block offshore of Guyana are listed in Table 1-4 below. Table 1-2 Gross and Net Barrels of Oil Equivalent Unrisked Prospective Resources Gross Prospective Oil Equivalent Net Prospective Oil Equivalent Resources, MMBOE6 Resources, MMBOE6 Orinduik Low Best High Low Best High Block Estimate Estimate Estimate Estimate Estimate Estimate TOTAL 2,614.6 5,141.3 9,313.8 392.2 771.2 1,397.1 1 Approximate 2/1/2020 1 Gustavson Associates Table 1-3 Gross Unrisked Prospective Resource Estimates for Orinduik Block Total Associated Gas Oil in Place, MMBbl Total Oil Resources, MMBbl Resources, BCF Low Best High Low Best High Low Best High Estimate Estimate Estimate Estimate Estimate Estimate Estimate Estimate Estimate Orinduik 9,353.8 18,001.9 31,696.6 2,315.0 4,537.0 8,178.7 1,797.8 3,625.8 6,810.5 Block TOTAL 9,353.8 18,001.9 31,696.6 2,315.0 4,537.0 8,178.7 1,797.8 3,625.8 6,810.5 (MMBbl = million barrels of oil; BCF = billion cubic feet) Table 1-4 Net Unrisked Prospective Resource Estimates for Orinduik Block and Risk % Prospective Oil Resources, Prospective Associated Gas Risk* Oil in Place, MMBbl MMBbl Resources, BCF Low Best High Low Best High Low Best High POS Estimate Estimate Estimate Estimate Estimate Estimate Estimate Estimate Estimate Range, % Orinduik 1,403.1 2,700.3 4,754.5 347.3 680.5 1,226.8 269.7 543.9 1,021.6 26.4 – 100 Block TOTAL 1,403.1 2,700.3 4,754.5 347.3 680.5 1,226.8 269.7 543.9 1,021.6 (MMBbl = million barrels of oil; BCF = billion cubic feet) * - Risk for each Lead and Prospect is detailed on page 23 The results from the drilling of the Jethro 1 and Joe 1 wells indicated the presence of oil and gas; however, the level of testing of these hydrocarbon accumulations was not sufficient to change the category of those resources from Prospective to Contingent. Note that these estimates do not include consideration for the risk of failure in exploring for these resources. Prospective Resources are defined as “those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. Prospective Resources are further subdivided in accordance with the level of certainty associated with recoverable estimates assuming their discovery and development and may be sub-classified based on project maturity.” 2 There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources. The Low Estimate represents the P90 values from the probabilistic analysis (in other words, the value is greater than or equal to the P90 value 90% of the time), while the Best Estimate represents the P50 and the High Estimate represents the P10. The totals given are simple arithmetic summations of values and are not themselves P90, P50, or P10 probabilistic values. 2 Society of Petroleum Evaluation Engineers, (Calgary Chapter): Canadian Oil and Gas Evaluation Handbook, Third Edition, August 2018, updated October 2019, pg. 13. 2/1/2020 2 Gustavson Associates TABLE OF CONTENTS PAGE 1. EXECUTIVE SUMMARY ...................................................................................................... 1 2. INTRODUCTION .................................................................................................................... 6 2.1 AUTHORIZATION ......................................................................................................... 6 2.2 INTENDED PURPOSE AND USERS OF REPORT ..................................................... 6 2.3 OWNER CONTACT AND PROPERTY INSPECTION................................................ 6 2.4 SCOPE OF WORK .......................................................................................................... 6 2.5 APPLICABLE STANDARDS ........................................................................................ 7 2.6 ASSUMPTIONS AND LIMITING CONDITIONS ....................................................... 7 2.7 INDEPENDENCE/DISCLAIMER OF INTEREST........................................................ 7 3. DISCLOSURES REGARDING ASSETS ................................................................................ 8 3.1 LOCATION AND BASIN NAME: GUYANA .............................................................. 8 3.1.1 Gross and Net Interest in the Property .................................................................... 9 3.1.2 Expiry Date of Interest .......................................................................................... 10 3.1.3 Range of Water Depths ......................................................................................... 11 3.1.4 Description of Target Zones ................................................................................. 11 3.1.5 Distance to Nearest Commercial Production ........................................................ 14 3.1.6 Product Types Reasonably Expected .................................................................... 17 3.1.7 Range of Pool or Field Sizes ................................................................................. 18 3.1.8 Depth of the Target Zones .................................................................................... 18 3.1.9 Identity and Relevant Experience of the Operator ................................................ 18 3.1.10 Risks and Probability of Success ........................................................................ 19 3.1.11 Future Work Plans and Expenditures ................................................................. 23 3.1.12 Market and Infrastructure ................................................................................... 24 3.1.13 Petroleum Systems .............................................................................................. 25 3.1.14 Analogous Fields ................................................................................................ 27 3.1.14.1 Tertiary ................................................................................................ 27 3.1.14.2 Cretaceous ........................................................................................... 27 3.1.15 Exploration History for the Offshore of Guyana ................................................ 28 3.1.16 Contract Areas .................................................................................................... 29 3.1.17 Discoveries and Leads ........................................................................................ 30 4. PROBABILISTIC RESOURCE ANALYSIS ........................................................................ 32 4.1 GENERAL ..................................................................................................................... 32 4.2 INPUT PARAMETERS ................................................................................................ 32 4.3 PROBABILISTIC SIMULATION ................................................................................ 34 4.4 RESULTS ...................................................................................................................... 35 4.4.1 Orinduik Block Distribution Plots ........................................................................ 41 5. REFERENCES ....................................................................................................................... 63 6. CONSENT LETTER .............................................................................................................. 65 7. CERTIFICATE OF QUALIFICATION ................................................................................