Eco-Atlantic looking for new partners to collaborate on Guyana's Orinduik Block

Eco-Atlantic looking for new partners to collaborate on Guyana’s Orinduik Block

Sep 03, 2023 ExxonMobil, News, Oil & Gas

Kaieteur News – Eco Atlantic Oil & Gas Ltd has unveiled its strategic intentions for the Orinduik Block, signaling its transition into the majority shareholder and operator roles. The company recently announced that, currently, its core objectives revolve around enticing new partners to collaborate on the license and taking an assertive approach towards drilling activities.

Presently, Eco Atlantic holds a 15% interest in the Orinduik block. However, this stake is poised to surge once the government approves an agreement it has with Tullow Guyana, B.V to acquire its 60% working interest in the block.

Eco noted that the strategy behind this transaction aligns with its commitment to create substantial value for its stakeholders by actively exploring hydrocarbons in some of the world’s most prolific petroleum basins.

Once the agreement is finalised, Eco-Atlantic will assume the role of operator and majority interest holder, boasting a 75% aggregate participating interest through its subsidiaries, Eco Guyana and Eco (Atlantic) Guyana Inc. The company also noted that the change in position enables it to play a pivotal role in driving the exploration process and implementing its strategy to attract new partners for collaboration.

Interestingly, Guyana’s Vice President (VP), Bharrat Jagdeo, recently came to the fore to note that while Tullow Oil Plc agreed to sell its Guyana’s subsidiary majority stake in the not-yet producing Orinduik Oil Block, the Government of Guyana has yet to be formally notified. He was keen to note that Tullow will need to formally notify the government because such a decision has to be approved by local regulators.

Map showing an outline of the Orinduik block, offshore Guyana

Moving to another significant development, Eco has reported an encouraging milestone in its South African operations. The company has confirmed the receipt of an initial payment amounting to US$2.5 million from Africa Oil. This payment pertains to the farm-out agreement concerning an additional 6.25% interest in Block 3B/4B.

Meanwhile, in Namibia, Eco Atlantic is actively evaluating prospects for farm-out opportunities related to its four existing licenses. This strategic assessment underlines the company’s commitment to maximizing the potential of its assets in the region.

Commenting on these advancements, Gil Holzman, the Chief Executive Officer (CEO) of Eco Atlantic, emphasised the significance of the company’s first-quarter results. Holzman highlighted that these results provide investors with a valuable reminder of the ongoing strategic initiatives being pursued across all segments of the company’s diverse portfolio.

Financially, Eco Atlantic disclosed a loss of US$717,000 for the three months leading up to the conclusion of June 2023. Additionally, the company reported having a net cash position of US$24.5 million as of August 30.

Nevertheless, Eco Atlantic has maintained that its proactive approach to expanding its presence and influence in the energy sector is evident through its pronounced strategies for the Orinduik Block, African operations, and asset assessment in Namibia.

As the company advances, its efforts are set to reshape the dynamics of the regions it operates in, while also capturing the attention of industry stakeholders and investors alike.