Eco Atlantic Oil & Gas Ltd (LON:ECO) (CVE:EOG) has told investors that drilling has now started on the Jethro-Lobe prospect within the Orinduik Block.
The explorer, which owns a 15% stake in the project, said the Orinduik partners estimate the well will take up to 40 days to drill.
Jethro-Lobe will be the first of two wells in the envisaged exploration programme, and the second will follow immediately afterwards to test the Joe prospect. Eco highlighted that it is fully funded for its share of up to six potential exploration or development wells on the Orinduik Block.
Pre-spud Jethro Lobe is estimated to have 214.5mln barrels of prospective resources, it is estimated to have a 43.2% chance of success.
"Today Eco Atlantic's first Guyana well has been spud, three years ahead of our petroleum agreement commitment,” said Gil Holzman, Eco chief executive.
“This is the start of a hugely exciting time for the company.
“Jethro Lobe will test the Lower Tertiary aged turbidites, as well drilling down into the Cretaceous.
“As such, we await the well results with great anticipation, as they will give us an even greater understanding of the geological plays.”
Everbody needs good neighbours
Holzman added: "The huge success which ExxonMobil has had on the neighbouring Stabroek Block, has aided our geological assessment of the many similar channel systems in our Orinduik Block.
“With fifteen leads and prospects identified on the Orinduik Block, and funding to drill six potential exploration wells beyond the two currently planned, this is only the start of a fascinating and potentially transformational time for the company."
Orinduik is seen to be an exciting exploration opportunity given its proximity to Exxon’s Stabroek Block which has been a standout frontier success.
Some 5.5bn barrels of crude have been found across thirteen discoveries within Stabroek. Even a fraction of that success in the adjacent Orinduik block would transform AIM-quoted Eco Atlantic.