viewEco Atlantic Oil & Gas Ltd

Eco Atlantic Oil & Gas expects significant 2020 after Tullow’s “very important” new Guyana discovery

Tullow's Carapa discovery and Exxon's successes at the prolific Stabroek block all bode well for the prospectivity across Eco's Orinduik exploration area.

Eco Atlantic Oil & Gas Ltd - Eco Atlantic Oil & Gas expects significant 2020 after Tullow’s “very important” new Guyana discovery

Eco Atlantic Oil & Gas Ltd (LON:ECO) (CVE:EOG) shares rose on Friday as it described Tullow Oil PLC’s (LON:TLW) Carapa discovery, offshore Guyana - revealed on Thursday - as “very important” and said that it is expecting 2020 to be a significant year.

After falling on Thursday, Eco shares were up 7.7% to 56p in early trading on Friday.

Success in Tullow’s non-operated exploration well - which confirmed high quality, light sweet crude albeit in a smaller than expected section of net pay - comes after a disappointing outcome in the lab for 2019’s Joe and Jethro discoveries (which were found to be lower grade heavy and sulphurous crude).

Carapa-1 was drilled by Repsol in the Kanuka block which is adjacent to both Eco’s Orinduik exploration area and Exxon’s prolific Stabroek licence block.

READ: Tullow Oil’s latest Guyana discovery is a positive boost

Significantly, like Exxon’s Liza field, Carapa’s discovery was made in the Cretaceous play whereas the Joe and Jethro discoveries are Tertiary age oil systems.

"The Carapa discovery is very important to us technically and confirms our thinking on prospectivity on our Orinduik block,” said Colin Kinley, Eco’s chief operating officer.

“The existence of a good oil grade unaffected by sulphur in board of us is excellent news.

“We have a proven source kitchen to the North, with ExxonMobil and partners having defined and now producing 32 API at the Liza field to the North of us, and now a 27 API oil discovery on Carapa to the South of us.

“We continue to gain a good understanding of the transportation and pooling systems, and we can see the reservoirs clearly in the cretaceous.”

“As more wells are drilled, it is becoming clearer to understand and define new drilling locations.

“We see very significant thick pay opportunities in the cretaceous section on Orinduik and we are currently defining our upcoming drilling plans, which we hope to have confirmed in the next few weeks.”

Eco looks forward to 2020 

Kinley added: “2020 is a significant year for Eco, and the discovery at Carapa is exactly what we were looking for.

“We now have drilling prospects that are significantly brightened.”

Whilst Eco and its investors await news from operator Tullow regarding the 2020 work plans for the Orinduik block, a previously commissioned new third party assessment of the project’s resources is due.

In Friday’s statement, Eco noted that the new competent persons report will incorporate the two recent Tertiary discoveries along with ‘read across’ from the de-risking successes at Carapa and also Exxon’s Stabroek block.

Some 3bn barrels of oil potential is presently envisaged across the Orinduik block.

Eco owns a 15% interest in Orinduik, where Tullow is operator with a 60% (and Tullow also holds a non-operating 37.5%  interest in Kanuka).

 -- Adds share price --

Quick facts: Eco Atlantic Oil & Gas Ltd

Price: 20.25 GBX

Market: AIM
Market Cap: £37.4 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Eco Atlantic Oil & Gas Ltd named herein, including the promotion by the Company of Eco Atlantic Oil & Gas Ltd in any Content on the Site, the...


Full interview: Eco Atlantic's Gil Holzman discusses boost to Orinduik...

Eco (Atlantic) Oil & Gas Limited's (LON:ECO) Gil Holzman caught up with Proactive London's Andrew Scott to discuss an updated CPR on its Orinduik Block, offshore Guyana. Gross prospective resources are now estimated at 5.14bn barrels on a p50 basis or best basis, which amounts to a net...

on 3/2/20

3 min read