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Orinduik oil similar to crude produced by Venezuela, Brazil and Angola – Eco Atlantic CEO
Oil company, Eco Atlantic says that the oil discovered last year in the Orinduik block’s Jethro and Joe wells has shown, after fluid sample analysis, to be similar to the crude being supplied by major oil producing provinces like Venezuela, Angola and Brazil.
In its audited financial statements for the first quarter ended March 31, the company – which holds a 15 percent working interest in the Orinduik concession – said fluid samples analysis results from both of the wells confirmed that they contain mobile heavy crude with high sulphur content. Eco said that the crude appears “not dissimilar” to the commercial heavy crudes in the nearby Hammerhead discovery in the Stabroek Block and to those currently in production in the North Sea, Gulf of Mexico, the Campos Basin in Brazil, Venezuela and Angola.
It was noted that the company engaged an independent third-party consultant with heavy oil development and economics expertise to help conduct preliminary evaluations related to various production and commercialization schemes. Apart from this, Kaieteur News understands that in February, Eco Atlantic filed a National Instrument 51-101 compliant resource report on the Orinduik Block. That report noted that there was a significant increase in Gross Prospective Resources to 5.1 billion barrels as opposed to the previous estimate of 3.9 billion. The latter estimate was provided to the market in March, 2019.
It was also noted that there are 22 drilling prospects identified on Orinduik Block, including 11 leads in the Upper Cretaceous horizon, the same place in which ExxonMobil has made most of its sweet, light oil discoveries.
This newspaper understands that most of the 22 leads have over a 30% or better chance of success (COS). The report said that this conclusion was enhanced by the recent discovery of light oil in the Carapa-1 Well on the Kanuku Block to the south of Orinduik.
Further assessments also show that leads in the Tertiary aged section where the heavy oil was found is estimated to contain 1.2 billion barrels of recoverable resource while leads in the Cretaceous section are estimated to contain approximately 3.9 billion recoverable resource.
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%.
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