Eco Atlantic Oil & Gas (ECO) said on Thursday it is reviewing its drilling strategy in the Orinduik Block, Guyana, along with its partners Tullow Oil (TLW) and Total SA (TTA).
Eco and the partners, are reviewing a post discovery drilling strategy and supplemental budget, of which Eco is to fund its net 15% working interest from its existing cash.
Eco also said it is preparing for post discovery activities on the two recent oil discoveries at the Jethro-Lobe and Joe wells, as well as additional exploration research and a 2020 drilling programme for further “high graded candidates”.
Gil Holzman, Co‐Founder and Chief Executive Officer for Eco, said: "After great success in our 2019 drilling campaign, with two significant oil discoveries, the JV Partners on the Orinduik Block have many additional targets to consider in the near term.”
“The newly learned results on Orinduik and the results from the Carapa well currently being drilled in shallow water on Repsol's adjacent Kanuku Block, just south of the Orinduik, will greatly assist in our interpretation and selection of future drilling targets.”
Mr. Holzman said that the company is sufficiently capitalized for drilling further wells in 2020, and highlighted: “With ample de-risked prospects and targets on the highly prospective Orinduik Block, Eco is well positioned to continue to generate material shareholder value.”
He also added that Eco is advancing its Namibian offshore blocks, where it is “seeing an increased inbound interest and drilling activity in the region"
Directors in Eco Atlantic have been buying up shares in the company in recent months.
Eco Atlantic also highlighted that there is the potential for more resources than previously anticipated, after evaluation of the well data from the Jethro-1 discovery and Joe-1 discovery.
The company said: “the reservoir and proven oil charge in the Upper Tertiary sands on Joe‐1 provides encouragement”.
Colin Kinley, Co‐Founder and Chief Operating Officer for Eco said: "As was the case with the Jethro‐Lobe well, we were able to clearly define the target on the 3D seismic section of Joe‐1, and the well results were in line with our pre-drill expectations."
"The reservoir and the proven oil charge in the Upper Tertiary sands in Joe -1 also provides encouragement in relation to many other Upper Tertiary locations throughout the Orinduik Block, for example the nearby off‐setting Jimmy prospect where Eco believes we now have a significant increase in the Chance of Success as it appears to be in the same charged sands.”
He added: "With further processing and interpretation of 3D seismic data, now correlated with our two well discoveries, the location of further wells to be drilled in 2020 will be defined within the next few months.”
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