Gil Holzman, CEO and Co-Founder of Eco Atlantic, commented: Yet another oil discovery for Eco in Guyana, and we are delighted to have been successful on both of our first two wells.
Eco Atlantic Makes a Second Oil Discovery Offshore Guyana
Joe-1 Well Proves a New Play Opener on Orinduik Block
· Further discovery on Joe-1, the second well on the Orinduik Block
· High quality of oil-bearing sandstone reservoir with a high porosity of Upper Tertiary age
· 52 feet (16 meters) of continuous thick sandstone which proves the presence of recoverable oil resources
Eco (Atlantic) Oil & Gas Ltd. (AIM: ECO, TSX-V: EOG) today announces a second oil discovery on the Orinduik Block, offshore Guyana. The Joe-1 exploration well was drilled by the Stena Forth drillship to a final depth of 7,176 feet (2,175 meters) in approximately 2,546 feet (780 meters) of water. Evaluation of MWD, wireline logging and sampling of the oil confirms that Joe-1 is the second discovery on the Orinduik license and comprises high quality oil-bearing sandstone reservoir with a high porosity of Upper Tertiary age. It encountered 52 feet (16 meters) of continuous thick sandstone which further proves the presence of recoverable oil resources. Additional thinner sands above and below the main pay are being evaluated for possible incremental pay.
Eco, along with its partners Tullow (Operator) and Total, will now conduct a detailed evaluation of the Jethro, Joe and Hammerhead extension oil reservoirs on the Orinduik Block. The Company previously released a Competent Persons Report on the block, prior to the discoveries on the Jethro and Joe wells, defining Best Estimate of Gross 3,982 million Barrels of oil equivalent on the Orinduik Block (approximately 600 million barrels net to Eco).
Colin Kinley, COO and Co-Founder of Eco Atlantic, commented:
“The Joe-1 discovery has now opened up an additional play on the Orinduik Block that further defines the full potential for Eco and our partners in Guyana. Our initial interpretation, prior to drilling, defined over a dozen potential resource targets throughout the entire hydrocarbon section. We set a strategy to first focus on these shallower Tertiary plays as they have a huge positive effect on overall economics and allow a speedy path to production.
Fast, low risk drilling to thick, clean, high porosity oil-bearing sands has decreased the drilling costs and greatly de-risks the development. This new discovery in the Upper Tertiary has opened a new play, the first Upper Tertiary discovery in Guyana, throughout our block, just as the Jethro-1 discovery did in the Lower Tertiary section. It has greatly increased our chance of success on our upcoming drilling targets and significantly de-risks other resource not previously considered in our interpretation.”
Gil Holzman, CEO and Co-Founder of Eco Atlantic, commented:
“Yet another oil discovery for Eco in Guyana, and we are delighted to have been successful on both of our first two wells. We share this success with the people of Guyana and our great partners at Tullow and Total. With Jethro and Joe as two proven oil discoveries on our block, in two separate horizons, and with multiple drilling targets in front of us, we are in a great place. We are well funded and budgeted to drill more prospects, as we continue to develop a world class asset for Guyana and for our shareholders.
The Joe-1 discovery, only a month after the Jethro-1 discovery, is very material for us as it has proven that our theory of shallow low-cost plays exists in Guyana, as we are up-dip from the huge Exxon fields at Liza and Turbot areas, with good quality sands and oil that is clearly present on our block. Extrapolating the overall extent of the play, the quality and accuracy of our interpretation and the significant upside as defined in our CPR, we now have a clear path to making further discoveries, and additional shareholders value creation.”
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