Latest update February 10th, 2025 7:48 AM
Orinduik wells will be relatively cheap – Eco Atlantic CEO Gil Holzman…says partners have enough cash to now drill three
By Kiana Wilburg
Chief Executive Officer (CEO) of Eco Atlantic, Gil Holzman has confirmed that there is enough cash in hand to support the drilling of two wells in its Orinduik Block, while noting that a third is very possible.
In a recent interview that was posted to his company’s website, Holzman noted that the Orinduik partners, being Eco, Tullow and Total, have contracted the Stena Forth drillship for the job.
The Eco Atlantic CEO also disclosed that the first well will be drilled in first week of June at its Jethro Lobe prospect. He said that the second well will be drilled right after.
Holzman said, “We are at the drawing table with Tullow and Total trying to identify which of our many targets we are going to drill second. And hopefully for me, for our shareholders, in four-five months from now, we will have a big oil discovery.”
So far, the CEO said that the partners have US$20M at its disposal. This money was had from allowing Total to acquire a 25 percent interest in the block.
He explained, “The way we structured it is that we included all the cost of the mobilization of the rig, the demobilization of the rig …the well heads, we included everything on the first well. The first well was budgeted very conservatively. We estimate over 40 days of drilling…So the first well, in December, we quoted it at US$7.6M net to Eco.”
However, since then, Holzman said that Eco managed to make some modifications and secured some deductions. Eco, he said, is now looking at a US$7M ticket.
Eco Atlantic CEO, Gil Holzman
He said, “However, if we manage to drill it in a few days less, it would probably (cost) a bit less. The second well, we will use the same drill ship and we already amortized the mobilization costs and it is probably going to be much cheaper. On average going forward, and from the experience we have seen from ExxonMobil, we (All the Orinduik Partners) could probably drill wells of US$35M each in our block.”
Holzman added, “…So on average, each well going forward is going to cost (Eco) US$4 to $5M net to the company. These are very cheap wells, relatively, for an offshore environment.”
At this point, the Eco Atlantic CEO said that the company is running a very lean company and costs at the moment, on an annual basis, are about US$1M.
ORINDUIK JV PARTNERS
In January 2016, Eco signed a Petroleum Agreement and is party to a Petroleum Licence with the Government of Guyana and Tullow Oil for the Orinduik Block offshore Guyana.
Tullow Oil as the Operator of the Block, paid past costs and carried Eco for the first 1000km2 of the 2550km2 3D Survey. Further, Tullow contributed an extensive 2D seismic data set and interpretation.
The Company’s 2550 km2 3D seismic survey was completed in September 2017, well within the initial four-year work commitment the Company made for the initial 1000km2.
In September 2017, Eco announced that its subsidiary, Eco Atlantic (Guyana) Inc. entered into an option agreement on its Orinduik Block with Total, a wholly owned subsidiary of Total S.A. pursuant to the option.
Total paid an option fee of US$1 million to farm-in to the Orinduik Block. An additional payment of US$12,500,000 was made when Total exercised its option to earn 25 percent of Eco’s working interest in September 2018.
Following the exercise of the option by Total, the Block’s working interests became: Tullow – 60% (Operator), Total – 25% and Eco – 15%. In October, last, the Government approved of the Total farm-in on the Orinduik Block, which has the potential for almost three billion barrels of oil equivalent.
Similar Articles
THE BLUNT OF THE DAY
Sports
Features/Columnists
Forward to the past
Peeping Tom… Kaieteur News-Guyana’s debt profile, both foreign and domestic, has become a focal point of economic... more
OAS Secretary General Election and renewed OAS Consensus
Antiguan Barbudan Ambassador to the United States, Sir Ronald Sanders By Sir Ronald Sanders Kaieteur News- The upcoming election... more
Weekend Cartoon
