Eco (Atlantic) Oil & Gas Ltd (AIM:ECO, TSX-V:EOG) has got the green light from Guyana’s Minister of Natural Resources for the company’s proposed acquisition of a 60% interest in the Orinduik block.
The company in August agreed its deal with Orinduik-partner Tullow Oil PLC (LSE:TLW) to buy out its stake in the project – with $700,000 to be paid upfront, followed by contingent payments subject to future results and project milestones.
Upon close, Eco will hold a 75% interest in the project.
"We are very happy to have support from the Minister of Natural Resources and the Government of Guyana,” said Eco chief operating officer Colin Kinley.
“We have always been very involved with the exploration and interpretation of the block, and our experienced team will step directly into operatorship to finalize target selection.”
Kinley added: “Eco now seeks qualified partners in this high-value play and has commenced a formal farm-out process for the block.
“Recent interest from supermajors and other well capitalized energy companies in the latest licensing bid round in Guyana, for blocks up dip of us, supports our thesis of the oil migration and the high quality and charged reservoirs we see on our block."
Orinduik is located adjacent to the prolific Exxon-operated Stabroek block which is host to the Liza field and a series of other major discoveries that together are estimated at holding some 11 billion barrels of reserves.
Chevron recently entered the Stabroek project through its acquisition of Hess, which was Exxon’s exploration partner in Stabroek with 40%.