Closeology appears to be coming into play for Eco Oil & Gas Ltd (CVE:EOG) as Tullow Oil Plc (LON:TLW), the Canadian company’s joint venture partner, has green lighted new drilling in an adjacent exploration area.
Tullow now plans to drill an exploration well within Block 037 which, as Eco highlighted in a statement, is located just south of Eco’s 32.5% owned Cooper Block.
Recently Tullow confirmed its full commitment to the plans for exploration within the Cooper Block, with the completion of the interpretation of the recently shot 3D program and to continue its focus on the identified drilling targets, Eco added.
"We are extremely happy with Tullow's decision to enter drilling phase on License 037 and to continue focus their efforts and attention offshore Namibia and especially on our Cooper Block in partnership with AziNam and NAMCOR, said Gil Holzman, chief executive of Eco Atlantic.
“We are very excited by what we are seeing based on the 3D interpretation process and are grateful to Tullow for the reassurance of their Namibian commitment and keen interest in the Walvis Basin."
Eco also told investors that in Guyana, where it is also partnered with Tullow, the larger exploration and production group had also agreed to accelerate the committed work programme for the Orinduik Block.
Tullow is the operator of the block, in which Eco owns a 40% stake.
The evaluation of Orinduik comes after Exxon Mobil’s recent discovery with a well in an adjacent block. Exxon’s Liza discovery is now being appraised by Exxon, via a second well, which is also located close to the Orinduik block.
Tullow and Eco now intend to fast track 2D seismic reprocessing at Orinduik, and they also plan to start designing a follow up 3D survey once the 2D work is done.
Holzman added: "We are very happy with the decision on acceleration of our joint programme offshore Guyana and are looking forward to the next few months' activities, research, and interpreted results."