TIDMECO
RNS Number : 4029U
Eco (Atlantic) Oil and Gas Ltd.
29 March 2019
29 March 2019
ECO (ATLANTIC) OIL & GAS LTD.
("Eco", "Eco Atlantic", "Company" or, together with its
subsidiaries, the "Group")
Eco Confirms that Orinduik Partners have approved a Second Well
Location for the 2019 Guyana offshore Drilling Program
Eco (Atlantic) Oil & Gas Ltd. (AIM: ECO, TSX-V: EOG), the
oil and gas exploration company with licences in highly prospective
regions in Guyana and Namibia, is pleased to announce that the
partners on the Orinduik Block offshore Guyana ("Orinduik") have
approved the drilling budget and the location of the second well of
the 2019 drilling program.
Highlights:
-- The 'Joe' prospect has been selected as the second well
location by Eco Atlantic (15%), Total E&P Activitiés
Pétrolières ("Total") (25%) and Tullow Guyana B.V. ("Tullow")
(60%), (Operator), (together, the "Partners")
-- The Partners have contracted the Stena Forth Drill Ship to
drill the Jethro Lobe Well with a spud date scheduled for early
June 2019. The rig will move directly after to Joe and begin
drilling this second exploration well in mid July 2019
-- The Joe Well is located in approximately 650 meters of water
-- Joe is a 150 mmboe (P50 - Best Estimate) Upper Tertiary
target which has a 43.2% Chance of Success, as estimated in the
recently published independent (NI51-101 Compliant) report produced
by Gustavson Associates
-- Net Cost to Eco for its 15% Working Interest in the Joe Well
is expected to be approximately USD $3 million
-- This is significantly less than the expected cost of the
first Jethro-Lobe Well, which is estimated at approximately USD
$6.9 million, as the cost of mobilising and demobilising the
drilling rig have all been incorporated into the cost of the first
well. As announced on 27 February 2019, Eco is fully funded for the
2019 campaign and beyond having current cash of approximately USD
$19 million. The second well is subject to customary Guyana
Department of Energy review.
Colin Kinley, Chief Operating Officer of Eco Atlantic,
commented:
"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. Both the Upper Tertiary age, Joe and Lower Tertiary age,
Jethro are excellent targets and have been selected jointly between
our Geoscientific Teams.
"Our recently updated CPR report included a billion barrel
increase in Gross Unrisked Prospective Resources to 3,981.9 MMBOE.
The evaluation of the Orinduik Block is ongoing and we are
confident in our ability to prove up oil in the Tertiary aged
section that has already been derisked by our neighbours on the
Stabroek Block with the Hammerhead discovery. We have developed an
excellent geological and geophysical model that we continue to
build on together with our Partners."
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. 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."
Qualified Person's Statement:
Colin Kinley, Chief Operating Officer of Eco Atlantic, has
reviewed and approved the technical information contained within
this announcement in his capacity as a qualified person, as
required under the AIM rules. Mr Kinley has over 38 years'
experience in the oil and gas industry.
**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, Director
Strand Hanson Limited (Financial & Nominated
Adviser) +44 (0) 20 7409 3494
James Harris
Rory Murphy
James Bellman
Stifel Nicolaus Europe Limited (Joint
Broker)
Callum Stewart
Nicholas Rhodes
Ashton Clanfield +44 (0)20 7710 7600
Berenberg (Joint Broker) +44 (0) 20 3207 7800
Matthew Armitt
Detlir Elezi
Pareto Securities Limited (Joint Broker) +44 (0) 20 7786 4370
Søren Clausen +44 (0) 20 7786 4382
Davide Finelli +44 (0) 20 7786 4398
Matilda Mäkitalo +44 (0) 20 7786 4375
Blytheweigh (PR) +44 (0) 20 7138 3204
Tim Blythe
Julia Tilley
Jane Lenton
Hannam & Partners (Research Advisor)
Neil Passmore
Hamish Clegg
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
About Eco Atlantic:
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, Total and Azinam.
In Guyana, Eco Guyana holds a 15% working interest alongside
Total (25%) and 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 ExxonMobil and Hess
Corporation's Stabroek Block, on which twelve discoveries have been
announced and over 5.5 billion barrels of oil equivalent
recoverable resources are estimated. First oil production is
expected from the deep-water Liza Field in 2020. ExxonMobil's
Hammerhead-1 discovery is just 6.5km down-dip from Eco's Orinduik
Block. Eco's updated Competent Persons Report of March 2019
confirmed that Hammerhead-1 extends onto Orinduik, which
significantly de-risks the Block.
In Namibia, the Company holds interests in four offshore
petroleum licences totalling approximately 25,000km(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 Azinam and NAMCOR. Eco has
been granted a drilling permit on its Cooper Block (Operator).
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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