Proactive Investors - Run By Investors For Investors

Exxon gives investors one billion more reasons to be excited about Guyana

Exxon has now made its tenth oil discovery within the Stabroek Block, which is adjacent to Eco's Orinduik exploration area
oil and gas operations
Exxon upgraded its estimate for Stabroek to 5bn barrels

Exxon Mobil has given investors a billion more reasons for investors to be excited about exploration in Guyana’s offshore frontier.

Thanks to its latest success, Exxon has now upgraded its estimate for the Stabroek Block where it now sees 5bn barrels of crude, up from 4bn.

The most recent drilling, in the Pluma-1 well, has encountered some 37 metres of a high-quality reservoir. Pluma marked Exxon’s tenth discovery offshore Guyana.

It is part of an ongoing programme to advance Stabroek, where the Liza development is due to come online by 2020.

READ: Eco Atlantic Oil & Gas says Total deal confirms Orinduik’s “great value”

The field will initially produce around 120,000 barrels of oil per day, but, according to current forecasts, it would ramp-up to in excess of 750,000 bopd by 2025.

Exxon holds a 45% stake in the Stabroek Block, alongside partners Hess (owning 30%) and Chinese state-owned CNOOC Nexen with the remaining 25%.

“Guyana is a truly world-class investment opportunity with multi-billion barrels of additional exploration potential,” John Hess said in a statement.

It is good news for AIM-quoted Eco Atlantic Oil & Gas which is preparing for the start of its own exploration efforts in the adjacent Orinduik block.

Eco last month closed its farm-out deal with Total to join the exploration partnership, which also includes Tullow Oil.

Total received 25% of Orinduik, and, in return, Eco received US$12.5mln in cash.

The deal leaves Eco fully funded for its participation in a proposed 2019 drill programme.

Eco chief executive Gil Holzman on 28 November described it as “the beginning of an exciting period” as it can now officially work with, Tullow and Total, to determine drilling targets for at least one well and potentially more.

Colin Kinley, Eco chief operating officer, meanwhile, said: “Now, with Total on board and being fully funded to drill, we look forward to moving ahead, finalizing drilling targets and approving the 2019 drilling budget for Orinduik.”

“We have remained well ahead of our committed schedule, being partnered with ambitious and highly experienced partners, and we look forward to advancing through drilling - years in advance of our committed timing under the terms of the Orinduik licence."

View full ECO profile View Profile

Eco Atlantic Oil & Gas Ltd Timeline

Related Articles

oil and gas operations
November 12 2018
“The shares have been range bound recently, however, we believe that CERP now has a stronger platform for achieving its combined organic and acquisitive growth strategy"
Hydrogen fuel gauge
April 05 2019
The company’s technology, DMG, uses a process of small scale gasification to turn waste products into energy rich clean synthetic gas from which electrical power and hydrogen can be produced
oil well
February 06 2019
Company has exploration and production interests in shale licences in the US and Australia

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use