ExxonMobil Corporation has made its ninth new discovery in the Stabroek block, offshore Guyana, with the Hammerhead-1 well - which provides yet more encouragement to Eco Atlantic Oil & Gas Ltd (LON:ECO, CVE:EOG).
Hammerhead is located just seven kilometres from the boundary to the Orinduik licence, where Eco has a 40% stake, is partnered with Tullow Oil and is set to farm-out to Total.
Eco highlighted that the Orinduik partners have extensively studied 2D geophysics data in the area, including out to the Stabroek block, and, has completed a significant 3D seismic survey last year.
"As the Hammerhead - 1 oil discovery is in very close proximity to the Orinduik block boundary, the Tullow and Eco teams will now continue to carefully review today's findings so as to better understand its technical and commercial implications," said Colin Kinley, Eco chief operating officer.
Kinley added: "We have carefully been analysing the channel systems and fan complexes on our Orinduik block for the past year and each successful well drilled by Exxon next door lowers our risks here.
“We have been painstakingly careful and meticulous in our processing quality control and with our interpretation and have shared efforts between our team of experts at Eco, Tullow and Gustavson and now with Total as they consider the exercise of their option.
“We all are confident in our understanding of these systems and this discovery immediately off board of our eastern border confirms our analysis.”
Eco highlighted that the data analysis and evaluation process is now nearing an end, and the partners are progressing to target selection.
Specifically, Eco said that Hammerhead has materially de-risked one of the many similar channel systems in its Orinduik block, positively mitigating some principal risks.
The company said the partners remain on track for drilling in mid-2019.