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ECO Atlantic has 'de-risked' Orinduik prospect with Jethro-1 discovery

Snapshot

  • Jethro-Lobe exploration well struck oil offshore Guyanay
  • Next well at Joe-1will be in shallower waters
  • Partnered with Tullow and Total at Orinduik
  • Exxon found multi-billion barrels next-door at Stabroek Block
Eco Atlantic Oil & Gas Ltd -

Quick facts: Eco Atlantic Oil & Gas Ltd

Price: 142 GBX

AIM:ECO
Market: AIM
Market Cap: £261.85 m
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​​​​​​What it does

Eco Atlantic Oil & Gas Ltd (LON:ECO) owns a 15% stake of the Orinduik licence offshore Guyana in the Atlantic Ocean.

A farm-out with French giant Total saw its stake reduced from 40% in return for a cash payment of US$12.5mln.

Away from Guyana, Eco owns four licences off the coast of Namibia including 57.5% of the Cooper Block where Tullow was the operator but decided instead to focus on Guyana. 

Eco’s exploration licence at Cooper runs for another three years with a drill ready target (The Osprey Prospect) and it is looking for another partner to help fund the programme.

 

 

How is it doing?

Eco’s Guyana acreage is a mirror of the hugely productive Jubilee field off the coast of Ghana.

Hopes had been high due the success of Exxon at Stabroek next door, but chief executive Gil Holzman said the result exceeded even those.

“The thickness [55m] exceeded our best estimate pre-drill expectations, so potentially it is a much bigger discovery than we anticipated.

“The result also de-risks the tertiary sandstones that we see across entre [Orinduik] block and opens up the potential for additional discoveries in the tertiary layer going forward.”

“This is only the beginning," he added.

"You can see that from ExxonMobil’x experience with Stabroek.

"It started with 900mln barrels at Liza, but now has 6bn barrels.

"Our increased understanding [of the geology] now means we can more easily pinpoint the best oil accumulations."

Joe-1, the next well to be drilled, is an upper tertiary shallow target.

Holzman says the company is funded for six wells, which will include Joe plus appraisal, development or more exploration wells.

 

Watch the interview

 

 

Inflexion points

Results from Joe-1

Details of follow up well or additional programme

New partner for Namibian assets

 

 

Blue Sky

The possibility that Orinduik can be as large as Stabroek

Estimates are for Tertiary Sandstone to contain 2bn barrels of oil

The Cretaceous layer might also contain 2bn barrels, making 4bn in total

In that case, Eco Atlantic would become a very large company very quickly

Namibia assets prove commercial and add to the pipeline.

 

 

What the broker says: Berenberg

Berenberg describes AIM-quoted Eco as ‘the only pure-play on one of world’s the most attractive exploration hotspots."

“Exxon’s discoveries, currently in development, may deliver upwards of 750k,000 barrels per day of production by 2025, making Guyana one of the largest oil-producing nations in the world."

 

 

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Watch

Full interview: Eco Atlantic's Gil Holzman hails back-to-back successes...

Eco Atlantic Oil & Gas Ltd's (LON:ECO, CVE:EOG) Gil Holzman speaks to Proactive London's Andrew Scott after confirming back-to-back exploration successes offshore Guyana as the Joe-1 struck oil. The Tullow Oil plc (LON:TLW) operated Joe-1 found high quality oil-bearing sandstone reservoir...

3 weeks, 3 days ago

2 min read