As investors and management await exploration results in Guyana, Eco Atlantic Oil & Gas Ltd (LON:ECO)(TSX:EOG) today released its annual report which highlights a “strong balance sheet” that allows it to begin its drilling campaign.
“Combined with the recent private placement, we now have C$39.7mln in cash and cash equivalents, which allows us to drill our first two wells on the Orinduik Block offshore Guyana in 2019 plus up to an additional six wells,” said Gil Holzman, Eco Atlantic chief executive.
He said Jethro-Lobe, the first well, was spudded at the beginning of July and results are expected by mid-August.
“The drillship will then move immediately to drill the second well (the Joe prospect).”
Holzman added: "We are very pleased to welcome yet another very strong partner such as Qatar Petroleum into the block.
“We look forward to updating the market with the results from Jethro Lobe in the coming weeks, the spudding of Joe and the results from our second well thereafter.
“There is no doubt that a success on either of the two wells would be a transformational event for the company and would put Eco in an exceptionally strong position to maximise shareholder value."
The pre-revenue explorer reported a 4.17mln loss for the twelve months ended 31 March.
Eco owns a 15% stake in the Orinduik exploration project offshore Guyana, alongside partners Tullow Oil and Total.
Pre-spud Jethro Lobe is estimated to have 214.5mln barrels of prospective resources, it is estimated to have a 43.2% chance of success.
Orinduik borders the prolific Stabroek block where Exxon has found some 5.5bn barrels of oil across thirteen new discoveries.