Eco Atlantic Oil & Gas Ltd (LON:ECO, CVE:EOG) is looking forward to a number of potential catalysts across its exploration portfolio, most notably at its Orinduik Block offshore Guyana.
September promises to be an important month for Orinduik, which is in the neighbourhood of Exxon’s large Liza oil discovery and its series of follow-up finds.
At Orinduik, which is still earlier stage, Eco and partner Tullow Oil plc (LON:TLW) have been working to analyse and interpret 3D seismic data – the completion of these efforts, expected next month, will have potentially have operational and commercial implications.
"During the last three months we have focused on completing our careful interpretation of the Orinduik data set and will shortly be issuing the final report to Total that moves us one step closer to triggering the exercise period for their option to farm into 25% of our Orinduik Block stake which will add USD$12.5mln to our cash reserves if exercised,” said Gil Holzman, Eco Atlantic chief executive.
“We continue to receive very interesting findings as our 3D interpretation progresses in Guyana, and, coupled with the recent additional Exxon discoveries in the adjacent Block, our partners continue to make excellent progress on the pre-drilling engineering and resource evaluation.”
Also in the diary for September is the anticipated completion of the new competent person report, being produced by Gustavson Associates.
Wednesday's quarterly update confirmed that Eco ended June with some C$13mln of cash and equivalents.
Elsewhere, in Namibia, Eco has a watching brief. Having secured a one-year extension to its first year exploration period earlier this year the company is now eyeing third-party wells offshore Namibia - it will have the option to move into the second phase exploration period, giving it another two years to advance the project.
Tullow Oil is due to drilling a well during the third quarter, to be followed by Chariot Oil & Gas Plc (LON:CHAR) in the fourth quarter.
The results of both wells, whether good or bad, will provide further insights into the overall understanding of the basin, offshore Namibia.
Holzman added: "We have spent the last quarter advancing our Namibian assets, including the extension of the current exploration period across all of our licences through to March 2019, the beginning of the second two year renewal period.
“We have also been identifying and evaluating new opportunities in other frontier regions."