Share prices for Eco Atlantic Oil and Gas (O&G) have appreciated significantly on the stock market, following the discovery of more than 100 million barrels of recoverable hydrocarbons in the Orinduik Block offshore Guyana.
According to market reports, the company—co-venture partner with Tullow—has seen its stock register an increase of 3.65% in short interest.
The O&G exploration company which recently began preparations to spud another exploratory well, had its total short interest at 53,900 shares in September, as published by the Financial Regulatory Authority (FINRA).
This represents an increase up 3.65% from 52,000 shares, reported previously. With 5,700 shares average volume, it will take short sellers 10 days to cover the company’s short positions.
Stocks increased 3.44% or $0.067 during the last trading session, reaching $2.017.
Following the discovery this past month, the Company’s CEO, Gil Holzman, said the discovery significantly “de-risks” the license and gives the co-venture partners a better understanding of the geology of the acreage.
Eco Atlantic is optimistic that the prospect could already be a standalone commercial development, Holzman posited.
He said that next year all the companies will “go back to the drawing table” and conduct a “simple appraisal program” to determine the next steps.
The 1,800 square kilometer Orinduik Block is situated in shallow water (70 – 1,400m), 170 km offshore Guyana and is located 11 kilometers up-dip from ExxonMobil’s recent Liza discovery and 6km up-dip from the Hammerhead discovery.
Eco holds a 15% working interest in Orinduik, Tullow Oil holds 60% and Total EP Guyana BV (Total) holds 25%, after exercising an option to acquire part of Eco’s interest in September 2018.
The company had spent the last few years resetting its exploration portfolio and after the successful results of the Jethro-Lobe prospect, will await the results of its drilling campaigns for two other wells, along with the Jethro-1 appraisal program in 2020, and then draw up development plans.