Eco (Atlantic) Oil & Gas Ltd chief executive Gil Holzman said he is excited about the potential of the Sapote-1 well and described an upbeat view of the company’s prospects for the rest of 2021.
Sapote-1 was spudded recently by operator Exxon as it continues to advance projects offshore Guyana and, subject to results, it can be a timely exclamation point to Eco’s recent investments.
Eco in June acquired a 10% interest in privately-owned JHI Associates which partners Exxon in the Canje block (it has a 17.5% stake in the acreage), which hosts Sapote-1, and in Tuesday’s quarterly results statement, the company highlighted that the deal ensured it had “near-term catalysts”. The Sapote-1 exploration well is targeting multiple prospects and the programme is expected to run for around 60 days, with results due in October. It has been described as the largest prospect to be tested in the Canje block to date.
"With other drilling targets in the region having yielded significant discoveries, now totalling billions of barrels of oil and oil equivalent, we are excited about the potential of the Sapote-1 well and look forward to receiving the well results in due course,” Holzman said.
Looking ahead to the company’s own plans, for its Orinduik block, Holzman added: “We also are keen to deliver additional drilling success with our next exploration campaign on our neighbouring Orinduik block in the Basin and the follow-through potential of Exxonmobil's recently announced multiple well pre-permitting on the Canje Block next year.”
“We are entering a very busy period of drilling and updating drilling plans and we look forward to updating the market in the coming months on our progress of the Orinduik Block and on the Sapote-1 results."
Holzman, meanwhile, described the three months ended June 30 as a busy period for the company.
At Orinduik, 15% owned by Eco, operations are continuing to ‘high-grade’ and select well candidates for a drill programme that is on the slate for 2022. The company noted that it expects target selection to take place in the third quarter of this year.
The company also noted that it is also excited about the outlook for its high potential exploration acreage offshore Namibia, as two third-party wells (operated by majors Total and Shell respectively) are being drilled later this year.
Eco also said that it continues to evaluate additional asset opportunities in both West Africa and South America, alongside strategic partner and substantial shareholder Africa Oil Corp (TSX-V:AOI). In this venture, the partners seek near-term high-impact exploration opportunities.
"We are upbeat about the company's prospects for the rest of 2021 and are well placed to deliver long-term success into next year. We look forward to updating all stakeholders as we move forward," Holzman added.
The explorer ended June with US$4.85mln of cash and equivalents and following the end of the quarter raised US$4.9mln through a placing in July.