Partners on Orinduik Block identify second well for 2019 Drilling Programme

Mar 30, 2019 News

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By Kiana Wilburg
Partners in the Orinduik Block—Tullow, Total and Eco-Atlantic—have approved its budget and the location of the second well for its 2019 drilling programme.
According to the Eco Atlantic, the ‘Joe’ prospect has been selected as the second well location. The company noted that the Stena Forth Drill Ship was contracted to drill the Jethro Lobe well first with a spud date scheduled for early June 2019.
The rig will move directly after, to Joe and begin drilling this second exploration well in mid July 2019. The Joe Well is located in approximately 650 meters of water.
Eco Atlantic said that Joe potentially holds 150 million barrels of oil equivalent resource and is an Upper Tertiary target which has a 43.2% chance of success, as estimated in the recently published independent report produced by Gustavson Associates.
The net cost to Eco for its 15 percent Working Interest in the Joe Well is expected to be approximately US$3 million.
Eco said that this is significantly less than the expected cost of the first Jethro-Lobe well, which is estimated at approximately US$6.9 million, as the cost of mobilizing and demobilizing the drilling rig have all been incorporated into the cost of the first well.
As announced on February 27, last, Eco is fully funded for the 2019 campaign and beyond, having current cash of approximately USD $19 million. The second well is subject to customary review by the Department of Energy.
Colin Kinley, Chief Operating Officer of Eco Atlantic, said, “The approval at this stage of a second well is a clear indication of the Partners’ risking of Orinduik. All of the Partners support a two well drilling campaign targeting close to 370 million barrels of Gross Prospective Resources at 43.2% risking, which is well above industry averages anywhere in the world.
“Both the Upper Tertiary age, Joe and Lower Tertiary age, Jethro are excellent targets and have been selected jointly between our Geo-scientific Teams.”
He added, “Our recently updated Competent Persons Report included a billion barrel increase in Gross Unrisked Prospective Resources to 3,981.9 Million Barrels of Oil Equivalent resources.”
The Chief Operating Officer said that the evaluation of the Orinduik Block is ongoing and Eco is confident in its partners’ ability to prove up oil in the Tertiary aged section that has already been de-risked by its neighbours on the Stabroek Block, being ExxonMobil with the Hammerhead discovery.
He added, “We have developed an excellent geological and geophysical model that we continue to build on together with our Partners.”
Also commenting on the matter was Gil Holzman, President and CEO of Eco Atlantic. Holzman said that with the selection by the Orinduik Partners of the second well target for its 2019 drilling campaign, they are now set for a transformational period in the life of the company.
He said, “With exceptional Partners, a strong cash balance, and an inventory of many high impact drilling targets in the most exciting oil province in the world, we hope to deliver significant value to shareholders in the near term. I take special pride in our ability to deliver and meet our professional objectives, bringing the company to such an exciting stage.”

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.
The Orinduik Block is adjacent and updip to ExxonMobil, CNOOC and Hess Corporation’s Stabroek Block, on which 12 discoveries have been announced and over 5.5 billion barrels of oil equivalent recoverable resources are estimated.
First oil production is expected from the deep-water Liza Field in 2020. ExxonMobil’s Hammerhead-1 discovery is just 6.5km down-dip from Eco’s Orinduik Block.
Eco’s updated Competent Persons Report of March 2019 confirmed that Hammerhead-1 extends onto Orinduik, which significantly de-risks the Block.

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