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Eco Atlantic not giving up just yet on Orinduik’s heavy oil – Engages third party to study possible commercialisation
By Kiana Wilburg
The partners of the Orinduik Block have not given up all hope on their heavy oil finds that were made last year. In fact, Eco Atlantic which holds a 15 percent working interest has engaged a third-party consultant with heavy oil development and economics expertise to help conduct preliminary evaluations related to production schemes and commercialization.
Eco Atlantic CEO, Gil Holzman
The exploration company said that technical and commercial evaluation work is ongoing and it is considering alternatives for further drilling and testing along with a number of development scenarios and production alternatives. The Company said it remains optimistic in considering the development scenarios and, as the project progresses, will provide further information on plans and timing.
It was on August 12, 2019 that the Company announced a major oil discovery on its Orinduik offshore petroleum license in Guyana. Evaluation of logging data confirms that Jethro-1 is the first discovery on that Guyana License and comprises high quality oil-bearing sandstone in the Lower Tertiary age. The well was cased and is awaiting further evaluation to determine the appropriate appraisal activity.
On September 16, 2019, Eco Atlantic announced a second oil discovery on the Guyana License. Wireline logging and sampling of the oil confirmed that Joe-1 is the second discovery on the Orinduik License and comprises a high-quality oil-bearing sandstone with a high porosity of Upper Tertiary age.
Both wells were drilled within budget and the reservoirs were considered to be high-quality sands with good permeability. Kaieteur News understands that fluid samples were taken in both of the wells and were sent for analysis by the Operator which is Tullow Oil. Results of that testing confirm that the samples recovered to date from Jethro-1 and Joe-1 are mobile heavy crudes with high sulphur content.
Eco Atlantic has since noted that the oil tested to date appears not dissimilar to the commercial heavy crudes currently in production in the North Sea, Gulf of Mexico, the Campos Basin in Brazil, Venezuela and Angola.
Gil Holzman, President and Chief Executive Officer of Eco Atlantic said, “After completing a successful drilling campaign in 2019, we continue to benefit from a very strong balance sheet and remain fully funded to conduct further exploration and appraisal drilling activity on the Orinduik Block.”
He added, “Our recently updated Competent Persons Report reaffirms the high prospectivity of the license and the considerable upside potential contained within the Tertiary and Cretaceous horizons. As such, the Joint Venture Partners (Tullow and Total) are working on incorporating the learnings gained from other regional discoveries, such as the Carapa well result (in the Kanuku Block), into our existing geological models, as this will enable us to identify the most high value targets on the Block.”
While it is Eco’s intention to conduct a drilling program later this year, Holzman was keen to highlight the need to integrate the new data learned from recent discoveries in the region into understanding the block’s geology which may result in further drilling and appraisal activity taking place in 2021.
However, a final decision on further drilling activity and the overall budget will be made in the coming months he said. The CEO added, “It is important to note that we remain convinced of the significant upside of Orinduik, are well funded, have strong shareholders and partners, and are confident that further drilling activity will be conducted as soon as practically possible and will prove the Block’s potential.”
As at 31 December 2019, Eco said that it had cash and cash equivalents of CAD $25.4 million with no debt and remains fully funded for its share of further appraisal and exploration drilling at Orinduik Block offshore Guyana of up to US$120m (gross). It also added that as at 31 December 2019, it had total assets of CAD $27 million, total liabilities of CAD $0.3 million and total equity of CAD $26.7 million.
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