Chief Executive Officer of Eco Atlantic Oil & Gas, Gil Holzman says he is not sure the market fully understands the significance of the company’s second oil discovery at the Joe-1 well offshore Guyana.
Speaking on a recent podcast, Proactive London’s Andrew Scott asked Holzman what he thought of the market response to news of the Joe discovery. “Do you think you’ve set the bar too high with that initial Jethro announcement?” Scott asked, referring to the first discovery on the Orinduik Block.
Holzman, in answering the question, said he thinks it is natural that shareholders are benefiting from profits while pointing out that the company’s share price has moved over 300% in the past twelve months.
“I am not sure that the market fully understands the significance of the Joe discovery, not only for the net oil that we have on this discovery, but the opening up of the whole new play in the upper tertiary,” he said.
Holzman pointed out that Joe is located in shallow water and is extremely economical and has opened up an additional series of targets. “So, I will let the market absorb the news. People will start to understand the significance of Joe,” he assured.
The Joe well is located in 780 metres of water and was drilled down to a depth of 2,175 metres. The oil discovery was confirmed by evaluation of MWD and wireline logging data, and through subsequent tests of oil samples it was determined to be a ‘high quality oil-bearing sandstone reservoir with a high porosity of Upper Tertiary age’.
Some 16 metres of continuous thick sandstone was encountered which further proves the presence of recoverable oil resources.
Eco has said that additional thinner sands were encountered both above and below the main discovery and these will now be evaluated for possible incremental pay.
Tullow Guyana B.V. is the operator of the Orinduik block with a 60% stake. Total E&P Guyana B.V. holds 25% with the remaining 15% being held by Eco (Atlantic) Guyana Inc.
