Eco Announces Guyana Operations Update
Thursday 22 February 2018
Eco (Atlantic) Oil & Gas Ltd., provided an operations update on its Orinduik Block offshore Guyana. Eco (Atlantic) Guyana Inc., the Company’s subsidiary, currently holds a 40% Working Interest (“WI”), and Tullow Oil, Operator, holds a 60% WI.
- Eco and Tullow have identified leads on the Orinduik Block with the potential to contain in excess of 1 billion barrels of oil equivalent (“boe”)
- Leads are updip from the Liza discoveries located on the Stabroek Block
- Leads are currently being evaluated and matured to prospect status on recently acquired 3D survey data
- Gustavson Associates of Colorado contracted to provide independent interpretation services and a CPR under AIM Guidelines and an NI-51-101 report under TSX Guidelines
- Total is now interpreting the first batch of the 3D survey data from the Orinduik Block, completed last year.
- As per the option agreement with Total E&P Activités Pétrolières announced on 26 September 2017, delivery of the final processed data to Total will trigger a formal review period of up to 120 days within which Total must determine whether to exercise its option to acquire a 25% WI in the Orinduik Block from the Group. A further announcement will be released once the formal review period commences.
- Exxon recently announced resource estimates in excess of 3.2 billion recoverable oil-equivalent barrels for the Stabroek Block, adjacent to the Orinduik Block and the implementation of engineering and construction work for the field
- First oil from the Liza discoveries stated by Exxon to be expected by March 2020, with production forecast to increase to in excess of 340,000 bbls/day by 2022
As previously announced, Eco has signed an option agreement with Total, under which Total paid the Group US$1 million for the right to farm-in and acquire a 25% WI in the Orinduik Block from Eco for a final consideration of US$12.5 million. The Orinduik Block is on the continental shelf margin updip of the prolific Exxon discoveries, in close proximity to the Liza discoveries. Exxon recently announced resource estimates in excess of 3.2 billion recoverable oil-equivalent barrels in respect of the discoveries and the implementation of engineering and construction work for the Liza field. This is expected to produce first oil from the Liza discoveries by March 2020, with production forecast in excess of 340,000 bbls/day by 2022. Exxon has also had two subsequent discoveries, both of which have development plans underway.
Based on the interpretation of approximately several thousand kilometers of 2D, regional well logs and seismic correlations to the Stabroek wells, Eco and Tullow have identified leads on the Orinduik block, which they estimate could contain in excess of 1 billion boe updip of the Liza discoveries, several of which are age equivalent to the Liza reservoir. As announced on 5 September 2017, the Company and its operating partner Tullow completed a 2,550 km2 3D seismic survey, acquired by Western Geophysical. The high-resolution seismic data is currently being processed at PGS Geophysical AS in the UK, with both Tullow and Eco already interpreting this data.
Eco also announced that, in addition to its USA based technical team at Kinley Exploration, it has contracted Gustavson Associates of Colorado to provide independent interpretation services. Gustavson will also provide a CPR under AIM Guidelines and an NI-51-101 report under TSX Guidelines. Gustavson, which has extensive experience in providing resource volumetrics and risking reports for public companies, has worked with the Eco team for many years and has had specific previous experience in the Guyana Basin.
Eco confirms it has now received the initial, conditioned PreSTM, in addition to Fast Track and initial PresSTM data sets from Tullow and, in accordance to the Total Option Agreement, has forwarded this to Total for their interpretation. Eco will receive the next phase of 3D inversion data from Tullow in the coming weeks. In accordance to the Total Option Agreement, once the final processed products/data have been delivered to Total a formal review period will begin, under which Total will have up to 120 days to exercise the Farm-In Option and pay Eco an additional US$12.5 million. Eco will announce the delivery of the completed processed data set at the appropriate time.