Eco (Atlantic) Oil and Gas Ltd. Eco Comments On ExxonMobil's Ninth Oil Discovery (3339Z)
August 31 2018 - 1:00AM
UK Regulatory
TIDMECO
RNS Number : 3339Z
Eco (Atlantic) Oil and Gas Ltd.
31 August 2018
31 August 2018
ECO (ATLANTIC) OIL & GAS LTD
("Eco Atlantic", "Company", "Eco" or, together with its
subsidiaries, the "Group")
Eco Atlantic Comments on Exxon's Ninth Major Discovery in Guyana
- Hammerhead-1
From Guyana today, on ExxonMobil Corporation ("Exxon")'s
Stabroek Block, Exxon and Hess Corporation have announced a new oil
discovery of 60 metres (197 feet) of net pay of high-quality,
oil-bearing sandstone reservoir in the Hammerhead-1 well. Exxon's
Hammerhead-1 oil discovery is located approximately 7km from Eco's
Orinduik licence boundary, where Eco (40%) and Tullow (60%,
Operator) are partners (the "Partners"). This well has very
positive implications for Eco and Tullow's adjacent acreage.
The Hammerhead-1 was drilled to a Total Depth of 4,225 metres
and discovered material quantities of oil in turbidite channel
systems. The Orinduik Block partnership has extensively studied 2D
Geophysics throughout the area including out onto the Stabroek
block and has completed a 2,550 km(2) 3D Survey last year. This 3D
Survey includes the Hammerhead-1 well location and shows that these
channel systems do extend up dip onto the Orinduik license. For the
past eight months, the Tullow and Eco teams have been coordinating
a detailed interpretation of the 3D seismic data, and this phase of
the work is now nearing completion and progressing to target
selection. Seeing and understanding the play, and today's Exxon
discovery, is a major milestone for the Company.
The Partners agree that the Hammerhead-1 discovery has now
materially de-risked one of the many similar channel systems in our
Orinduik Block, positively mitigating both reservoir and migration
principal risks. The Partners confirm that this area has of today
been de-risked, and will shortly be in a position to pick the well
location for our first well on this licence. We remain on track for
drilling mid 2019.
Colin Kinley, Chief Operating Officer and Director of Eco
Atlantic commented:
"We have carefully been analysing the channel systems and fan
complexes on our Orinduik block for the past year and each
successful well drilled by Exxon next door lowers our risks here.
We have been painstakingly careful and meticulous in our processing
quality control and with our interpretation and have shared efforts
between our team of experts at Eco, Tullow and Gustavson and now
with Total as they consider the exercise of their option. We all
are confident in our understanding of these systems and this
discovery immediately off board of our eastern border confirms our
analysis. We see a number of significant resource opportunities on
Orinduik and will be releasing a CPR (NI51-101 Compliant) on what
we see as system potential in the near term.
"As the Hammerhead - 1 oil discovery is in very close proximity
to the Orinduik Block boundary, the Tullow and Eco teams will now
continue to carefully review today's findings so as to better
understand its technical and commercial implications"
**ENDS**
For more information, please visit www.ecooilandgas.com or
contact the following:
Eco Atlantic Oil and Gas +1 (416) 250 1955
Gil Holzman, CEO
Colin Kinley, COO
Alan Friedman, VP
Strand Hanson Limited (Financial & Nominated
Adviser) +44 (0) 20 7409 3494
James Harris
Rory Murphy
James Bellman
Brandon Hill Capital Limited (Joint Broker) +44 (0) 20 3463 5000
Oliver Stansfield
Jonathan Evans
Robert Beenstock
Pareto Securities Limited (Joint Broker) +44 (0) 20 7786 4370
Soren Clausen +44 (0) 20 7786 4382
Davide Finelli +44 (0) 20 7786 4398
Matilda Mäkitalo +44 (0) 20 7786 4375
Peterhouse Corporate Finance +44 (0) 20 7469 0930
Eran Zucker
Blytheweigh (PR) +44 (0) 20 7138 3204
Tim Blythe
Simon Woods
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014.
Notes to editors
Eco Atlantic is a TSX-V and AIM listed Oil & Gas exploration
and production Company with interests in Guyana and Namibia where
significant oil discoveries have been made.
The Group aims to deliver material value for its stakeholders
through oil exploration, appraisal and development activities in
stable emerging markets, in partnership with major oil companies,
including Tullow, ONGC, Total (optional) and AziNam.
In Guyana, Eco Guyana holds a 40%(1) working interest alongside
Tullow Oil (60%) in the 1,800 km(2) Orinduik Block in the shallow
water of the prospective Suriname Guyana basin. The Orinduik Block
is adjacent and updip to the deep-water Liza Field and Snoek,
Payara, Pacora, Turbot and Longtail Discoveries, recently
discovered by ExxonMobil and Hess, which is estimated to contain in
excess of 3.7 billion barrels of oil equivalent, making it one of a
handful of billion-barrel discoveries in the last half-decade.
In Namibia, the Company holds interests in four offshore
petroleum licences totaling approximately 25,000 km(2) with over
2.3 billion barrels of prospective P50 resources in the Walvis and
Lüderitz Basins. These four licences, Cooper, Guy, Sharon and Tamar
are being developed alongside partners, which include Tullow Oil,
AziNam and NAMCOR. Drilling activity in Namibia is set to gather
pace in 2018 and 2019, with a few wells confirmed to be spud on
Tullow PEL 037 and Chariot Central Blocks. The Company has applied
for a drilling permit on its Cooper (Operator) Block.
(1) Total E&P Activités Pétrolières, (a wholly owned
subsidiary of Total SA) ("Total") has purchased an option from Eco
to acquire a 25% Working Interest in the Orinduik Block for and
additional US$12.5 million.
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END
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