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Eco Atlantic Oil and Gas looks forward to June as rig contract is signed for Guyana exploration well

At least one exploration well is contracted, though the addition of a second well is possible

oil and gas operations
The drill ship will mobilise in May, ahead of a June spud date

Eco Atlantic Oil and Gas Ltd (LON:ECO, CVE:EOG) has contracted the Stena Forth harsh-environment drillship for its upcoming exploration well, offshore Guyana.

Stena Forth will drill the Jethro-Lobe prospect on the Orinduik Block offshore Guyana, in the neighbourhood of Exxon’s multi-billion barrel discoveries.

It is expected that the drillship will mobilise to the project in May and the Jethro-Lobe well will start drilling in June.

READ: Eco Atlantic has huge prize in its crosshairs

The rig contract includes a ‘window’ for a second within Orinduik, following Jethro-Lobe well.

Plans for the second well are currently being reviewed and it is expected that those plans may be finalised in the coming weeks.

"Eco is pleased to have secured the Stena Forth Drillship for this initial drill programme on Orinduik,” said Colin Kinley, Eco chief operating officer.

“This state-of-the-art class 3 rig has overall capacity ratings at close to double our operating requirements.”

“The rig is operating, which is a great advantage to the partners. The partners selected the 250 million barrel Jethro-Lobe Tertiary prospect in December, which is only a few kilometres away and up dip from multiple Exxon discoveries in the region and in the same proven resource intervals.”

Kinley highlighted that Jethro-Lobe is believed to be similar to the Exxon Hammerhead discovery which appears to extend onto Orinduik.

In a separate statement this morning, Eco also announced the appointment of Berenberg and Stifel as its new joint corporate brokers, who will work alongside the company’s existing brokers Pareto Securities and Strand Hanson.

Chief executive Gil Holzman said: “Given our upcoming workflow, we feel it is the right time to broaden and strengthen our brokerage and market making services with great names such as Stifel and Berenberg.

“Eco is entering a year full of corporate and operational activities, with at least two wells to be drilled on our Orinduik Block in Guyana with our partners Total and Tullow starting in June 2019.”

“Following our farm-out deal with Total, the company is fully funded for our planned 2019-2020 work programme and is looking forward to a year of great promise."

Quick facts: Eco Atlantic Oil & Gas Ltd

Price: 24.6101 GBX

Market: AIM
Market Cap: £45.45 m

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on 24/11/20

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