Eco (Atlantic) Oil & Gas (ECO) has completed the Farm-Out Agreement with a Total subsidiary on the Orinduik block, offshore Guyana.
Total transferred the balance of $12.5 million for a 25% working interest – leaving the remaining 60% to the operator Tullow, and 15% to ECO.
According to the company, all required government authorisations have been obtained and all relevant partner approvals have been executed.
The company stated it will now progress to the next state of exploration.
Colin Kinley, Chief Operating Officer of Eco, said: “The Company has advanced quickly through the stages of 2D interpretation and 3D surveying, processing and interpretation.”
“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”
Gil Holzman, Chief Executive Officer of Eco, said: The farm out was a culmination of years of hard work from the Eco Team, “who identified Orinduik as a high-grade opportunity even before ExxonMobil's Liza discovery on the adjacent Stabroek block”.
He added it is “the beginning of an exciting period where we can now work officially alongside two world-class partners, Tullow and Total, to determine drilling targets for at least one well and potentially more on Orinduik in mid 2019.”
The Guyana Orinduik block is in shallow water of the prospective Suriname-Guyana basin.
It is adjacent to the deep-water discoveries recently made by ExxonMobil and Hess, estimated to contain in excess of 4.2 billion barrles of oil equivalent, one of the handful of billion-barrel discoveries in the last half-decade.
