Eco Atlantic Oil & Gas looks towards new well schedule in 3Q21

Vox Markets
Vox Newswire
11:30, 17th June 2021

Eco Atlantic Oil & Gas (ECO FOLLOW) said its partner and operator of the Orinduik Block offshore Guyana, Tullow Oil, is ‘confident’ that the pair can form a new drilling schedule in 3Q21. 

Eco, an oil and gas exploration firm which holds licences in Guyana and Namibia, said Orinduilk continues to advance in its maturity to the selection of further drilling prospects. 

As a result, Eco’s partners in the Orinduik Block; Tullow Guyana BV, which operates the area with a 60% working interest and TOQAP Guyana BV, a joint venture of Total/Qatar which holds a 25% working interest (which join together as the ‘JV’), say they are ‘confident’ in the technical advancement and scheduled progression towards drilling target selection in 3Q21. 

Eco, which says it is ready and prepared to drill a well in 2022, subject to approval by the JV, said seismic reprocessing will be completed this summer with target selection committed to follow. 

Eco said that Tullow, supported by the technical teams of Eco Atlantic and TOQAP, has ‘significantly advanced’ the exploration of the Orinduik Block over the past 18 months. 

In-depth analysis of the Joe and Jethro wells, which both showed significant accumulations of biodegraded heavy oil in the lower Tertiary, have been further analysed geochemically, it said. 

The discovery of 27 API light oil in the Carapa well, which was drilled updip and inboard of the Orinduik Block, and within the Cretaceous section, has been reviewed and focused on, Eco said, while processed and reprocessed data has recently been received by the JV and is now being reviewed for defining the next prospects to be drilled on the Orinduik Block. 

The company highlighted to investors that the JV has completed significant work on the depo-systems in order to map hydrocarbon travel updip onto the Orinduik terraces from the same source rock feeding the reservoirs within Stabroek, which is downdip from Orinduik. 

“The JV geoscience team will continue to focus on the regionally proven light oil Cretaceous Turbidite plays on trend with the Liza and Carapa discoveries on which we have spent a great deal of time conducting technical analysis to define the prospectivity, element by element, within this sector,” Colin Kinley, Co-Founder and COO of Eco Atlantic explained. 

He commented, “We are seeing very material independent and stacked prospects and will define a ranking of these targets in the coming fall, which we are prepared and budgeted for, and (assuming JV approval) which will enable us to drill on the play in 2022." 

As world economies begin to recover, Eco said it expects to see demand for new exploration increasing, ‘to bridge the deficit between renewable capacity and growing energy demand.’ 

He added, “The Guyana / Suriname Basin is set to mature from its current 10 billion plus discovered barrels, and current 120,000 BBbls/Day, to potentially 10 FPSOs and over a million barrels of production per day, expected mid-way through this decade.  

This, supported by estimated breakeven prices of US$35, US$25 and US$32 per barrel recently reported by Hess in respect of discoveries on the nearby Stabroek block in the same region, proves extremely positive for the Orinduik partners and company stakeholders.” 

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As Eco plans to outline a new drill programme in 3Q22, the company highlighted that the Guyana / Suriname Basin is set to mature from its current valuation to potentially 10 FPSOs and over a million barrels of production per day, expected mid-way through this decade. 

Eco says this, supported by estimated breakeven prices of US$35, US$25 and US$32 per barrel recently reported by Hess in respect of discoveries on the nearby Stabroek block in the same region, proves extremely positive for the Orinduik partners and its stakeholders. The company highlighted to investors that this has motivated the drive to additional drilling. 

Shares in Eco Atlantic have increased by over 5% in value over the past month. The stock was trading 1.88% lower this morning at 23.55p following the company’s announcement. 

ECO price chart

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