Eco Atlantic Oil & Gas Ltd (LON:ECO, CVE: EOG) has revealed the findings of a new resource estimate which underlines the potential for a big future at the Orinduik licence, offshore Guyana.
Orinduik has been estimated to contain potentially 2.9bn barrels across ten exploration leads. It would mean that Eco’s 40% stake in Orinduik would be equal to some 1.16bn barrels.
"We have identified the potential for close to 2.5bn barrels of recoverable oil and 2.45 TCF of associated gas. These are very meaningful numbers for all the partners and most importantly the people of Guyana,” said Colin Kinley, Eco Atlantic chief operating officer.
"Three of the targets we have identified have estimated Probability of Success calculated at 22.4% at this stage. This risking is extremely good for any company on a single lead, let alone three.”
READ: Eco Atlantic Oil & Gas boosted by Exxon’s latest Guyana discovery
Kinley added: “We continue to de-risk the play and are approaching this with a conservative and focused approach.
“As our partner, Tullow announced last week, we are planning to drill our first well early Q3 2019 and we are in the process of permitting and engineering in parallel with continuing geophysical and geological assessments."
Final results from a 3D seismic programme completed a year ago is presently being finalised for the final data to be sent to proposed farm-in partner Total this month.
Once it has the data, Total will have 120 days to exercise its option to acquire 25% of Orinduik by paying US$12.5mln to Eco.
Major nearby successes have been a factor in the level of interest in Orinduik, which lies adjacent to ExxonMobil’s large oil discoveries.
Exxon, in the next door licence block, in 2015 unearthed the Liza field which with further appraisal success is now estimated to above 1bn barrels and is now being developed– with start-up anticipated by 2020, before a ramp up to a 120,000 bopd production rate via a floating production vessel.
Liza was just the start of Exxon’s success, to date it has made nine new discoveries in the adjacent exploration area - Liza, Payara, Liza deep, Snoek, Turbot, Ranger, Pacora, Longtail and Hammerhead.
The most recent, named Hammerhead, is perhaps particularly interesting for Eco as it is the closest to Orinduik and, somewhat significantly, it is visible within the 3D seismic data gathered in Tullow’s recent programme.
In this morning’s statement, Colin Kinley added: “The additional discoveries on Exxon's Stabroek Block, including the most recent Hammerhead-1 that is on our 3D survey, enables us to see the formations ramp up onto Orinduik.
“These have greatly helped us to further understand the play. Ten key leads have been identified on Orinduik to date.
“The partners will carefully consider in the coming months the prioritization of the leads for drilling as we continue work on the drilling engineering and the environmental permitting.”