Eco (Atlantic) Oil & Gas (ECO) , the oil and gas exploration company with licences in Guyana and Namibia, told investors that the second well on the Orinduik Block in Offshore Guyana has had the drilling budget approved by its partners, Total & Tullow.
The second well, named the “Joe” prospect, will begin drilling in mid July after the Jethro Lobe well spud, which is scheduled for early June 2019.
The Joe prospect is a 150 mmboe P50 target with a 43.2% chance of success according to an independent NI51-101 compliant report.
The net cost to Eco for its 15% working interest in the Joe prospect is expected to be approximately $3 million, significantly less than the expected cost of Jethro Lobe, which is estimated at $6.9 million.
The company told shareholders it is fully funded for the 2019 campaign and beyond with $19 million of cash.
Colin Kinley, Chief Operating Officer of Eco Atlantic, said: "The approval, at this stage, of a second well is a clear indication of the Partners' risking of Orinduik. All of the Partners support a two well drilling campaign targeting close to 370 million barrels of Gross Prospective Resources (P50 Best) at 43.2% risking, which is well above industry averages anywhere in the world.”
Gil Holzman, President and CEO of Eco Atlantic, added: "With the selection by the Orinduik Partners of the second well target for our 2019 drilling campaign, we are now set for a transformational period in the life of our company.”
He continued: “With exceptional Partners, a strong cash balance, and an inventory of many high impact drilling targets in the most exciting oil province in the world, we hope to deliver significant value to shareholders in the near term. I take special pride in our ability to deliver and meet our professional objectives, bringing the company to such an exciting stage."
Watch a Q&A with Eco Atlantic Oil & Gas Co-Founder and CEO, Gil Holzman below
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