– as company optimistic of 4 billion barrels of oil in block
The Stena Forth oil exploration drillship has left West Africa en route to Guyana where it will spud the Jethro Lobe prospect offshore the English-speaking South American nation by the end of June, Eco Atlantic Oil and Gas announced on Monday.
This is according to the company in a release. According to the company, the Stena Forth drillship is expected to reach Eco’s Orinduik Block on or around June 24, 2019.
The ship is being mobilised for Eco and its partners, Tullow Guyana BV (“Tullow”) and Total EP Guyana BV (“Total”), for a committed two-well campaign. The first exploration well is to be drilled on the Jethro Lobe prospect, as announced on December 5, 2018. The second well is the Joe prospect, a few kilometres away.
To date, Guyana has confirmed about 6 billion barrels of oil under the Atlantic Ocean due to 13 discoveries on the Stabroek Block by ExxonMobil. Eco Atlantic Oil and Gas estimates there are about 4 billion barrels of oil on its Orinbduik Block.
According to Eco Atlantic, the Stena Forth was actively drilling for Tullow on an existing contract immediately prior to its transition to Guyana and is fully crewed with experienced personnel, allowing a smooth transition and less rig-up and training time.
Eco noted that it boasts a cash balance today of approximately US$35 million and is funded for its share of up to a further six potential new exploration or development wells in addition to the Jethro Lobe and Joe wells, following a placing and subscription completed on April 10, 2019.
ECO’s Chief Operating Officer, Colin Kinley, was quoted as saying: “The mobilisation of the Stena Forth is the final stage of a long, conservative and quality controlled process to plan and drill the initial two wells on Orinduik. The Block licence was applied for in March 2014 and was awarded to Eco and Tullow in January 2016 with a first well commitment for 2021/2022.
“With 13 discoveries, so far totalling over 5.5BBOE (billion barrel of oil equivalent) on Exxon’s adjacent Stabroek Block in the past three years, and with our strong commitment to Guyana, the joint venture partners have since expedited and significantly expanded their work programme far beyond and ahead of the committed requirements.”
Kinley added: “Our team, together with Tullow and Total, have comprehensively interpreted the nearly 3000 km2 of 3D seismic data we shot over and beyond Orinduik and have selected the first two targets that we feel will allow us to accelerate the Block’s development. With the Stena Forth now mobilising westwards to Guyana waters, we are on course to drill a pair of potentially transformational wells for the company, for the Block partners, and for Guyana.”
Eco Atlantic’s Chief Operating Officer was confident that its interpretation of its data supported a relatively high chance of success, estimated at over 40 per cent for both the Jethro and Joe prospect.
The company said that despite the outcome of the first two planned wells, it has enough capital for a multi-well drilling campaign and was confident that hydrocarbons are on the Block in the wake of good quality sands like those on the Stabroek Block. Consequently, Kinley maintained that the main risks are the quality of the seal and the presence of a trap.
“Thanks to our successful US$17 million placement and subscription in April, we have a cash balance today of over US$35 million so we are in the fortunate position of being fully funded to drill up to six additional wells on Orinduik, across the fifteen identified prospects…the two wells will test both the Upper and Lower Tertiary-aged turbidites, while Jethro will also be drilled down to the Cretaceous section.”
“Our focus is on near-term oil production and we have ordered our exploration programme around risking, development and deliverability of oil for the people of Guyana and our stakeholders,” Kinley remarked.
