(Eco Atlantic, 1.Jan.2019) — The 1800km2 Orinduik Block is situated in shallow water (70 – 1,400m), 170 km offshore Guyana in the Suriname Guyana basin, and is located 11km up-dip from ExxonMobil’s recent Liza discovery and 6km up-dip from Hammerhead discovery.
Eco holds a 15% working interest in Orinduik, Tullow Oil holds 60% and Total E&P Activités Pétrolières (Total) holds 25%, after exercising an option to acquire part of Eco’s interest in September 2018.
The partners have identified multiple leads on the block for which a NI 51-101 compliant CPR report was released in September 2018. A second NI 51-101 compliant CPR report was published in March 2019. The updated CPR estimates an increase in Gross Unrisked Prospective Resources P50 (Best) to 3,981.9 MMBOE on the Block, implying Net (15%) 597.3 MMBOE to Eco, identified across a total of 15 Leads on the Orinduik Block. This was up from 2,913.3 MMBOE in the previous report.
Orinduik Block Milestones
In January 2016, Eco signed a Petroleum Agreement and is party to a Petroleum Licence with the Government of Guyana and Tullow Oil for the Orinduik Block offshore Guyana.
Tullow Oil is the Operator of the Block, paid past costs and carried Eco for the first 1000km2 of the 2550km2 3D Survey. Further, Tullow contributed an extensive 2D seismic data set and interpretation. The company’s 2550km2 3D seismic survey was completed in September 2017, well within the initial four-year work commitment the Company made for the initial 1000km2.
In September 2017, Eco announced that its subsidiary, Eco Atlantic (Guyana) Inc. entered into an option agreement on its Orinduik Block with Total, a wholly owned subsidiary of Total S.A. Pursuant to the option, Total paid an option fee of US$1 million to farm-in to the Orinduik Block. An additional payment of US$12,500,000 was made when Total exercised its option to earn 25% of Eco’s working interest in September 2018.
Following exercise of the option by Total, the Block’s working interests became:
— Tullow – 60% (Operator)
— Total – 25%
— Eco Guyana – 15%
Committed Work Programme:
— Initial four-year licence term: Conduct (complete) and process 1000 km2 3D seismic programme (2550 km2 was completed in 2017)
— First three-year renewal period: Drill one exploration well (contingent)
— Second three-year renewal period: Drill one exploration well (optional)
The United States Geological Survey ranks the Guyana-Suriname basin as the world’s second-most prospective and under-explored offshore basins. It is currently estimated that 13.6 billion barrels of oil and 32 trillion cubic feet of natural gas have yet to be discovered.
Since 2008, ExxonMobil has been working in the Stabroek Block of the Guyana-Suriname Basin and has made seven significant discoveries in the licence area, totalling an estimate of over four billion barrels of recoverable oil. This makes the oil major’s find only one of a handful of billion-barrel discoveries in the last half-decade. Production from ExxonMobil’s flagship Liza field is expected to produce first oil by 2020.
Eco (Atlantic) Oil & Gas holds a 15% working interest in the Orinduik Block and is just 11km from and updip to ExxonMobil’s Liza Discoveries.