Eco Atlantic Oil & Gas’ Chief Executive Officer (CEO) Gil Holzman says its future partner in the Orinduik Block offshore Guyana could secure as much as 75% stake in the acreage.
Eco is the sole owner of the block but is pursuing a substantial farm-out with as much as nine companies in the running. During a recent investor update, he said 10% to 25% would be a reasonable stake for Eco to retain in the farm-out deal.
“We feel comfortable anything from 10%, 15%, 20%, 25% that’s a sweet spot for us. It’s small enough for someone to agree to carry us, and it’s big enough for us to enjoy a big discovery,” Holzman stated.
Eco identified two drill targets in the Orinduik Block to be spud in 12-18 months. The targets – Kumaka and Iatuk – reside in the same zone as Exxon’s Liza discoveries.
“The first [drilling] target is around 700 million [barrels]. If you have 10% or 20% of it, let’s say on average 100 million barrels [for Eco’s share] at $3 or $4 a barrel in the ground, that’s a company maker.”
The company had been a minority partner until Tullow (former operator) left by selling its Guyana affiliate to Eco. TotalEnergies and QatarEnergy also handed over a stake they had held as a joint venture.
The executive said it is important for Eco to partner, though the company may retain operatorship of the license. “We can operate. We did it in the past, but we will not spend 100% sole risk of our shareholders’ money on drilling a well.”
Two heavy oil discoveries were made at the block in 2019 – Jethro and Joe. Eco said studies indicated that there is enough proven oil there to make development profitable.
