Eco-Atlantic Oil & Gas said it is encouraged by the latest ExxonMobil oil discovery at Hammerhead-1 in the Stabroek Block offshore Guyana. Hammerhead-1 is said to be located seven kilometres from the boundary with the Orinduik block, where Eco has a 40 percent stake along with joint venture partner Tullow which is preparing to farm out to French oil giant Total.
The partners in the Orinduik licence have extensively studied 2D geophysical data of the area, including near to the Stabroek Block and had completed a significant 3D seismic survey last year.
“As the Hammerhead – 1 oil discovery is in very close proximity to the Orinduik block boundary, the Tullow and Eco teams will now continue to carefully review today’s {August 30, 2018} findings so as to better understand its technical and commercial implications,” Colin Kinley, Eco Chief Operating Officer, is quoted as saying. He added, “We have carefully been analysing the channel systems and fan complexes on our Orinduik block for the past year and each successful well drilled by Exxon next door lowers our risks here.”
He noted that the partners have been painstakingly careful and meticulous in their processing quality control and with their interpretation and have shared efforts among their team of experts at Eco, Tullow and Gustavson and now with Total “as they consider the exercise of their option.”
Eco stated that the data analysis and evaluation process is now nearing an end, and the partners are moving on to target selection.
Gil Holzman, President and Chief Executive Officer of Eco Atlantic said, “During the last three months we have focused on completing our careful interpretation of the Orinduik data set and will shortly be issuing the final report to Total that moves us one step closer to triggering the exercise period for their option to farm into 25% of our Orinduik Block stake which will add USD$12.5 million to our cash reserves if exercised. We continue to receive very interesting findings as our 3D interpretation progresses in Guyana, and, coupled with the recent additional Exxon discoveries in the adjacent Block; our partners continue to make excellent progress on the pre-drilling engineering and resource evaluation.”
