Eco (Atlantic) Oil and Gas Ltd announced Tuesday via its unaudited results for the six months ended September 30, 2020, that multiple light, sweet, oil drilling prospects are currently being reviewed for the next drilling programme at the Orinduik Block. Last year, the company along with its joint venture (JV) partners drilled two wells (Jethro-1 and Joe-1) which produced heavy oil deposits.
In hopes of replicating the success of the Stabroek block, Eco said that the partners have taken a decision to acquire further definition of the block’s Cretaceous play as well as target selection for drilling.
The company also noted that on June 30, 2020, its partners, Tullow and Total, approved a budget in the amount of approximately US$5 million through to December 31, 2020 for 3D reprocessing based on new regional results and high grading of target selection. The company’s share of this budget is US$750,000.
With respect to its financial health, Eco was informed the market that at September 30, 2020, it had cash and cash equivalents of US$17.2 million with zero debt. It disclosed as well that it remains fully funded for its share (15% WI net) of its planned two exploration wells at Orinduik Block offshore Guyana. For the period under review, Eco also had total assets of US$18.4 million, total liabilities of US$470,661, and total equity of US$18 million. It reported a 70 percent reduction in general and administrative expenses as compared to the same six-month period in 2019, including travel costs reduction of 82% and office cost reductions of 90% in line with previously reported pandemic cost discipline measures.
With no debt and strong cash reserves, President and Chief Executive Officer of Eco Atlantic, Gil Holzman commented that his company remains well placed to capitalize on its strategic acreage in both Guyana and Namibia.
He said, “In Guyana, arguably one of the most attractive exploration and production regions in the world in the past five years, we are excited to recommence drilling activity in due course and we are aiming to define targets through reprocessing and we hope to have target selection in the next six months allowing us to begin drilling preparation in the second half of 2021.”
The Orinduik JV partners are Eco Atlantic (15% working interest – WI), Tullow Guyana B.V. (Operator, 60% WI) and Total E&P Guyana B.V. (25% WI) in partnership with Qatar Petroleum (government approval is expected imminently).