Eco (Atlantic) Oil & Gas Limited (LON:ECO) has reported a 29% increase in the estimate of the amount of oil contained at its Orinduik Block, offshore Guyana.
Gross prospective resources are now estimated at 5.14bn barrels on a p50 basis or best basis, which amounts to a net 771mln barrels to Eco for its 15% stake.
The competent persons report (CPR) identified 22 prospects of which 11 are in the upper cretaceous horizon, where oil is expected to be lighter and more commercial than recent heavy oil discoveries in the tertiary layer.
Leads in the Tertiary horizon are estimated to contain 1.2bn barrels while the Cretaceous section contains an estimated 3.94bn barrels with two targets in this section (Amaila/Kumaka and Iatuk-D) each containing 725mln barrels.
Over half of the 22 prospects have a 30% chance of success or greater, said the CPR.
Colin Kinley, Eco’s chief operating officer commented: "The understanding of our resources has gained strength and momentum with the discoveries we made in the Tertiary last summer and the recent discovery of light oil in Carapa-1, made on the Kanuku block to the south of us.
"Our choice was to first test the Tertiary section and to take the risk of opening a new play and a new opportunity for Guyana."
He added: "As previously announced, this younger section delivered a significant resource of heavy oil pay. Heavy oil is more challenging to produce than conventional lighter oils, but remains a marketable hydrocarbon. The company is conducting an in-depth evaluation of the economics of this play, with independent third party economic advisory support."
"The Cretaceous pathway of lighter weight oils from the source kitchen to the north, through the Liza sands and through the recent discovery of light oil in Carapa-1 to the south confirms our theory and interpretation of transmission of high-quality oil across the Cretaceous sand channels and traps within the Orinduik Block.
Kinley concluded: "We have seen a growth of the overall oil numbers with the thickness of section and a greater understanding of the areal extent and thicknesses of our sands. Our confidence in the play continues and was greatly enhanced with the now proven light oil in the Cretaceous section immediately to the south."