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More smiles for Eco Atlantic after identifying another shallow water target
When the Joe-1 discovery was made in the Orinduik Block in August, Eco Atlantic which holds a 15 percent working interest. There was elated since it de-risked the Upper Tertiary play.
Eco Atlantic CEO, Gil Holzman
The shallow water discovery was significant since it was the first to be made in a play with rocks that are of a relatively young geological age. More importantly, the discovery signals cheap production costs for Eco and its partners Total and Tullow Oil.
Today, Eco Atlantic has more reasons to smile since it has been able to identify another Upper Tertiary target called Jimmy. Eco Atlantic’s CEO, Gil Holzman, recently noted that Jimmy is not too far from the Joe-1 exploration well.
In fact, Holzman recently described Jimmy to be Joe’s “best friend” given their similar characteristics.
Now that the Joe-1 discovery has de-risked shallow water exploration, Holzman said that other majors such as CGX Resources Inc. and ExxonMobil are now exploring their blocks for Upper Tertiary targets.
Further to this, the Eco Atlantic Head said that next year, the partners are looking at four drill targets. He said one of those will be close to the Jethro-1 discovery.
JOE DISCOVERY
Eco Atlantic Oil and Gas Ltd. had announced that the Joe-1 exploration well was drilled by the Stena Forth drillship to a final depth of 7,176 feet (2,175 meters) in approximately 2,546 feet (780 meters) of water.
It was noted by the company that Joe comprises high quality oil-bearing sandstone reservoir with a high porosity of Upper Tertiary age.
Eco had said, too, that Joe-1 encountered 52 feet (16 meters) of continuous thick sandstone which further proves the presence of recoverable oil resources.
Furthermore, Eco, along with its partners Tullow which is the Operator of the block and French oil major, Total, has proceeded to conduct a detailed evaluation of the Jethro, Joe and the Hammerhead extension oil reservoirs on the Orinduik Block.
The Company had previously released a Competent Persons Report on the block, prior to the discoveries on the Jethro and Joe wells, defining Best Estimate of Gross 3.98B barrels of oil equivalent on the Orinduik Block (approximately 600 million barrels net to Eco).
ORINDUIK JV PARTNERS
It was in January 2016 that Eco signed a Petroleum Agreement and became 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%.
This month the Government approved the Total farm-in on the Orinduik Block, which has the potential for almost three billion barrels of oil equivalent.
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