Liza1 neighbour strikes deal with Orinduik block

Sep 27, 2017 News

A company that has oil blocks near the Liza1 concession in which a world class deposit has been found, has said it has entered a key agreement with Total E&P Activités Pétrolières, a wholly owned subsidiary of Total SA.
Eco (Atlantic) Oil & Gas Ltd. said that the deal with its subsidiary, Eco Atlantic (Guyana) Inc. into an option agreement on its Orinduik Block, offshore Guyana, provides Total a 25% working interest.
Eco Guyana currently holds a 40% working interest in Orinduik, and Tullow, the operator, holds the remaining 60%.
“The Orinduik Block directly offsets a line of discovery wells recently drilled by Exxon in its Stabroek Block in the Guyana-Suriname Basin, with Exxon estimating between 2.25 and 2.75 billion barrels of recoverable oil,” Eco disclosed.
Pursuant to the option agreement, Total will make an immediate payment of US$1M for the option fee at its sole discretion, and to farm-in to the Orinduik Block for an additional payment in cash of US$12.5M to earn the 25% working interest.
“The exercise of the option must be made within 120 days of completion of processing of the 3D seismic. The survey acquisition was completed on September 5, 2017… and processing is expected to take about three months. The option fee is repayable in the unlikely event that the Seismic Data Report is not provided to Total by June 1, 2019.”
Once the transaction is completed and has received all regulatory approvals, including Government of Guyana approval, the interests will be Tullow – 60% (Operator); Total – 25% and Eco Guyana – 15%.
Gil Holzman, President and CEO of Eco Atlantic, stated: “We are extremely happy to complete this agreement with Total SA, one of the world’s largest oil companies. The deal not only validates the quality of the Orinduik block as a highly prospective license, it also validates Eco’s long term strategy- to identify highly prospective assets in frontier basins, with favourable Petroleum Agreement terms, and with world class partners.”
Eco Atlantic is said to be an oil and gas exploration company focused on the acquisition and development of unique upstream petroleum opportunities around the world.

An oil concession neighbouring ExxonMobil’s Stabroek block, is also attracting high interest.

In Namibia through wholly owned subsidiaries, the company currently holds interests, some carried by Tullow Oil and Azinam, in four offshore petroleum licenses covering more than 32,000 square kilometers in the Walvis and Lüderitz Basins, in close proximity to major blocks controlled by Repsol and Tullow Oil.
In Guyana, Eco Atlantic holds an interest in the 1,800 square kilometer Orinduik offshore block in close proximity to the Exxon Mobil Corporation’s recently announced “Liza” discovery holding multi million barrels of oil.
The deal between Eco and Total would come amidst heightened interest in Guyana’s waters, following Exxon’s major find which has placed Guyana on the global oil map.

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