JV partners renewal of Orinduik Licence

RNS Number : 2771W

Eco (Atlantic) Oil and Gas Ltd.

10 December 2019

 

10 December 2019

ECO (ATLANTIC) OIL & GAS LTD.

("Eco," "Eco Atlantic," "Company," or together with its subsidiaries, the "Group")

JV partners enter first Renewal Period of the Orinduik Petroleum Agreement

Eco (Atlantic) Oil & Gas Ltd. (AIM: ECO, TSX‐V: EOG) is pleased to announce that the Orinduik Block Joint Venture Partners (the "JV Partners") have elected to enter the next exploration phase (the "First Renewal Period") of the Orinduik Petroleum Agreement signed on 14 January 2016 and have submitted their official notice to the Department of Energy of the Government of Guyana.

The entering into of the First Renewal Period, which will commence from 14 January 2020, will see the JV Partners maintain control of the licence for a further three years, through to 13 January 2023, and until the second renewal period. The work completed by the JV Partners on the Orinduik Block to date, including the completion of a 2,550 km² 3D seismic programme in 2017 and the drilling of two exploration wells, both leading to discoveries, on Jethro-1 and Joe-1, has exceeded all of the original license commitments required within the initial phase of the Orinduik Petroleum Agreement.

The JV Partners are, Eco Atlantic (15% working interest ("WI")), Tullow Guyana B.V. ("Tullow") (Operator, 60% WI) and Total E&P Guyana B.V. ("Total") (25% WI).

Gil Holzman, President and Chief Executive Officer of Eco Atlantic, commented: 

"We are very pleased that the JV Partners have unanimously elected to enter into the next phase of exploration and development at the Orinduik Block.  We have met and exceeded all of the licence commitments to date and stand ready to further appraise and explore the significant hydrocarbon potential of the Orinduik Block licence, both in the proven discoveries of the Tertiary layer and in the deeper Cretaceous layer, estimated to hold an additional 3.2 bn barrels of oil (gross unrisked prospective (P50) resource) according to the CPR resource report published in March 2019. 

"2019 has been a milestone year for Eco Atlantic.  We were honoured to be awarded the Explorer of the Year award at the Oil & Gas Council's Awards for Excellence, voted on by industry participants, on 3 December 2019.  As we look to next year, we will continue to work closely with all our stakeholders, including our host Governments and the JV Partners, to determine the budget and drilling programme for 2020, and we look forward to publishing an updated CPR on Orinduik Block and sharing our upcoming plans on our Namibian and Guyanese licences over the coming months."

For more information, please visit www.ecooilandgas.com or contact the following:

Eco Atlantic Oil and Gas	[phone]
Gil Holzman, CEO Colin Kinley, COO Alice Carroll, Head of Marketing and IR	[phone]
Strand Hanson Limited (Financial & Nominated Adviser)	[phone]
James Harris James Bellman
Stifel Nicolaus Europe Limited (Joint Broker) Callum Stewart Ashton Clanfield	[phone]
Berenberg (Joint Broker)	[phone]
Matthew Armitt Detlir Elezi
Celicourt (PR)	[phone]
Mark Antelme Jimmy Lea Hannam & Partners (Research Advisor) Neil Passmore Hamish Clegg Canaccord Genuity (North American Advisor) Simon Akit	[phone] [phone]

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014.

Notes to editors

About Eco Atlantic:

Eco Atlantic is a TSX-V and AIM quoted Oil & Gas exploration and production Company with interests in Guyana and Namibia, where significant oil discoveries have been made.

The Group aims to deliver material value for its stakeholders through oil exploration, appraisal and development activities in stable emerging markets, in partnership with major oil companies, including Tullow, Total and Azinam.

In Guyana, Eco Guyana holds a 15% working interest alongside Total (25%) and Tullow Oil (60%) in the 1,800 km² Orinduik Block in the shallow water of the prospective Suriname-Guyana basin. The Orinduik Block is adjacent and updip to ExxonMobil and Hess Corporation's Stabroek Block, on which thirteen discoveries have been announced and over 6 Billion BOE of oil equivalent recoverable resources are estimated. First oil production is expected from the deep-water Liza Field in 2020. 

Jethro-1 was the first major oil discovery on Orinduik Block. The Jethro-1 encountered 180.5 feet (55 meters) of net high-quality oil pay in excellent Lower Tertiary sandstone reservoirs which further proves recoverable oil resources. Joe-1 is the second discovery on the Orinduik Block and comprises high quality oil-bearing sandstone reservoir with a high porosity of Upper Tertiary age. The Joe-1 well encountered 52 feet (16 meters) of continuous thick sandstone which further proves the presence of recoverable oil resources.  

In Namibia, the Company holds interests in four offshore petroleum licences totalling approximately 25,000km² with over 2.3bboe of prospective P50 resources in the Walvis and Lüderitz Basins.  These four licences, Cooper, Guy, Sharon and Tamar are being developed alongside partners Azinam and NAMCOR. Eco has been granted a drilling permit on its Cooper Block (Operator).

 

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