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Saturday, February 27, 2021

Joe discovery proves shallow low-cost plays exist in Guyana

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The discovery of 52 feet (16 meters) of continuous high quality oil-bearing thick sandstone at the Joe-1 exploration well offshore Guyana is being viewed as a significant development by the explorers on the block, particularly since it opens a new play and further defines potential targets.

Tullow Oil (Operator) along with its partners Total and Eco Atlantic Oil & Gas, will now conduct a detailed evaluation of the Jethro, Joe and Hammerhead extension oil reservoirs on the Orinduik Block. A Competent Persons Report (CPR), released prior to the discoveries on the Jethro and Joe wells, defined Best Estimate of Gross 3,982 million Barrels of oil equivalent on the block.

“I am very pleased that we have made back-to-back discoveries in Guyana and successfully opened a new, shallower play in the Upper Tertiary age of the Guyana basin with our second well,” Tullow’s Exploration Director, Angus McCoss said on Monday.

Colin Kinley, COO and Co-Founder of Eco Atlantic said the new play further defines the full potential for Eco and its 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,” Kinley pointed out.

Fast, low-risk drilling to thick, clean, high porosity oil-bearing sands has decreased the drilling costs and greatly de-risks the development. “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,” Kinley said.

Gil Holzman, CEO and Co-Founder of Eco Atlantic said the Joe-1 discovery, only a month after the Jethro-1 discovery, is very material for the explorers “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.”

The Joe Prospect is a stratigraphic channel fill and overbank sand body that trend to the northwest on the northern part of the Orinduik 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,” Holzman said.

Tullow Guyana B.V. has a 60% stake in the Orinduik Block. Total E&P Guyana B.V.  holds 25% with the remaining 15% being held by Eco (Atlantic) Guyana Inc.

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