Eco (Atlantic) Oil & Gas Ltd (AIM:ECO, TSX-V:EOG) told investors that its 50%-owned Gazania-1 well, offshore South Africa, is due to spud in September.
The company, in a statement, noted that the well will be drilled in 150 metres of water, some 25 kilometres from shore.
It will be drilled down some 2,800 metres deep to test a “stacked pay section” of the AJ-1 discovery - in a proven oil horizon, in an ‘up dip’ location. The well is expected to take around 25 days to drill.
The target has been estimated previously at around 300mln barrels.
“We have worked diligently with our drilling team and partners to define a safe and efficient drilling strategy for Gazania, to define drilling engineering to meet world standards of environmental protection and hopefully give South Africa access to its own oil resources," said Eco chief operating officer Colin Kinley.
Kinley, meanwhile, notes that permits are in place for the well nevertheless the company felt it necessary to voluntarily meet with the regional local communities and interested parties to hear out concerns and interests regarding the well.
“The company met with community representatives at public information sessions and we have had, and will continue to have, face-to-face discussions in the coming weeks,” Kinley added.
Eco, as operator of the project, engaged Island Drilling Company’s Island Innovator rig, out of Bergen, Norway, and the rig is expected to mobilise in the second half of July.
“We are currently on schedule to mobilize out of Norway in the third week of July and spud early in September,” Kinley highlighted.
“We anticipate approximately three to four weeks on site to drill the test well and then regardless of our findings we will seal off the well, ensure the site is completely restored and move off. Eco has chosen a majority of available South African services and will base its operations from Cape Town.
“This is an exciting opportunity and holds the potential of establishing a new over 300 million barrels light oil resource."
Eco acquired its 50% stake in in Block 2B, which hosts Gazania-1 well, earlier this year with its deal to acquire Azinam Group.
Block 2B already hosts the AJ-1 discovery which was previously estimated to contain some 56mln barrels of oil equivalent contingent resources.
Its partners in the block are Africa Energy Corp (TSX-V:AFE) (with 27.5%), Panoro Energy ASA (12.5%) and Crown Energy AB (10%).