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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."

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