TIDMECO
RNS Number : 3636M
Eco (Atlantic) Oil and Gas Ltd.
16 September 2019
16 September 2019
ECO (ATLANTIC) OIL & GAS LTD.
("Eco", "Eco Atlantic", "Company" or, together with its
subsidiaries, the "Group")
Eco Atlantic Makes a Second Oil Discovery Offshore Guyana
Joe-1 Well Proves a New Play Opener on Orinduik Block
Highlights:
-- Further discovery on Joe-1, the second well on the Orinduik Block
-- High quality of oil-bearing sandstone reservoir with a high porosity of Upper Tertiary age
-- 52 feet (16 meters) of continuous thick sandstone which
proves the presence of recoverable oil resources
Eco (Atlantic) Oil & Gas Ltd. (AIM: ECO, TSX-V: EOG) today
announces a second oil discovery on the Orinduik Block, offshore
Guyana. The Joe-1 exploration well was drilled by the Stena Forth
drillship to a final depth of 7,176 feet (2,175 meters) in
approximately 2,546 feet (780 meters) of water. Evaluation of MWD,
wireline logging and sampling of the oil confirms that Joe-1 is the
second discovery on the Orinduik license and comprises high quality
oil-bearing sandstone reservoir with a high porosity of Upper
Tertiary age. It encountered 52 feet (16 meters) of continuous
thick sandstone which further proves the presence of recoverable
oil resources. Additional thinner sands above and below the main
pay are being evaluated for possible incremental pay.
Eco, along with its partners Tullow (Operator) and Total, will
now conduct a detailed evaluation of the Jethro, Joe and Hammerhead
extension oil reservoirs on the Orinduik Block. The Company
previously released a Competent Persons Report on the block, prior
to the discoveries on the Jethro and Joe wells, defining Best
Estimate of Gross 3,982 million Barrels of oil equivalent on the
Orinduik Block (approximately 600 million barrels net to Eco).
Colin Kinley, COO and Co-Founder of Eco Atlantic, commented:
"The Joe-1 discovery has now opened up an additional play on the
Orinduik Block that further defines the full potential for Eco and
our partners in Guyana. Our initial interpretation, prior to
drilling, defined over a dozen potential resource targets
throughout the entire hydrocarbon section. We set a strategy to
first focus on these shallower Tertiary plays as they have a huge
positive effect on overall economics and allow a speedy path to
production. Fast, low risk drilling to thick, clean, high porosity
oil-bearing sands has decreased the drilling costs and greatly
de-risks the development. This new discovery in the Upper Tertiary
has opened a new play, the first Upper Tertiary discovery in
Guyana, throughout our block, just as the Jethro-1 discovery did in
the Lower Tertiary section. It has greatly increased our chance of
success on our upcoming drilling targets and significantly de-risks
other resource not previously considered in our
interpretation."
Gil Holzman, CEO and Co-Founder of Eco Atlantic, commented:
"Yet another oil discovery for Eco in Guyana, and we are
delighted to have been successful on both of our first two wells.
We share this success with the people of Guyana and our great
partners at Tullow and Total. With Jethro and Joe as two proven oil
discoveries on our block, in two separate horizons, and with
multiple drilling targets in front of us, we are in a great place.
We are well funded and budgeted to drill more prospects, as we
continue to develop a world class asset for Guyana and for our
shareholders. The Joe-1 discovery, only a month after the Jethro-1
discovery, is very material for us as it has proven that our theory
of shallow low-cost plays exists in Guyana, as we are up-dip from
the huge Exxon fields at Liza and Turbot areas, with good quality
sands and oil that is clearly present on our block. Extrapolating
the overall extent of the play, the quality and accuracy of our
interpretation and the significant upside as defined in our CPR, we
now have a clear path to making further discoveries, and additional
shareholders value creation."
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
Alice Carroll, Head of Marketing +44 (0) 7817 295 070
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
Blytheweigh (PR) +44 (0) 20 7138 3204
Tim Blythe
Julia Tilley
Jane Lenton
Hannam & Partners (Research Advisor)
Neil Passmore
Hamish Clegg
Cannacord Genuity (North American Advisor)
Simon Akit +1 416 869 3820
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.
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 35 years'
experience in the oil and gas industry.
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 thirteen discoveries have
been announced and over 6 Billion BOE of oil equivalent recoverable
resources are estimated. First oil production is expected from the
deep-water Liza Field in 2020.
Jethro-1 was the first major oil discovery on Orinduik Block.
The Jethro-1 encountered 180.5 feet (55 meters) of net high-quality
oil pay in excellent Lower Tertiary sandstone reservoirs which
further proves recoverable oil resources. Joe-1 is the second
discovery on the Orinduik Block and comprises high quality
oil-bearing sandstone reservoir with a high porosity of Upper
Tertiary age. The Joe-1 well encountered 52 feet (16 meters) of
continuous thick sandstone which further proves the presence of
recoverable oil resources.
In Namibia, the Company holds interests in four offshore
petroleum licences totalling approximately 25,000km(2) with over
2.3bboe 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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