Eco Atlantic and its operating partner Tullow have approved a circa 2,550 square kilometers seismic survey on the company’s Orinduik block offshore the Republic of Guyana.
The survey is anticipated to begin in the next two weeks. The survey will be completed by Schlumberger Guyana Inc. (WesternGeco).
Eco Atlantic holds a 40% working interest in Orinduik, and Tullow, the operator, holds the remaining 60%. The Orinduik block is located up dip and just a few kilometers from Exxon’s recent Liza and Payara discoveries.
Eco Atlantic and Tullow have completed the first phase of exploration including evaluating all existing and regional 2D data. Following the results of this study, both parties have agreed to accelerate and significantly increase the originally proposed 1,000 square kilometers 3D survey, and cover the entire block area.
As part of its agreement with Tullow, Tullow will carry Eco Atlantic’s share of the originally proposed 1,000 km2 of the survey, at a cap of USD 1.25 million, with the balance of the program being funded by both parties on a pro-rata basis. The additional cost of the enhanced seismic program to Eco is covered by existing cash resources following the company’s over-subscribed placing of GBP 5.1 million announced in February 2017 in conjunction with its dual listing on the AIM market of the London Stock Exchange.
Colin Kinley, COO and co-founder of Eco Atlantic commented: “We are excited to embark on this very significant 3D survey which is substantially greater than the originally planned survey. In addition to de-risking the existing two defined targets, the survey will hopefully generate additional targets on the Orinduik Block, thereby increasing the prospective oil in place and adding leads for future work programs.
“We were keenly interested in this region of the Guyana-Suriname Basin even prior to Exxon’s highly successful drilling program, applying for the Orinduik block in 2014 because of its highly prospective Cretaceous canyon and fan plays. We have since been excited to see Exxon continue to successfully prove out the region in its ongoing drilling program and look forward to results from our own 3D survey, which are expected to come in the next couple of months.
“The 2D interpretation has led to at least two significant reservoir leads on the Orinduik block that both we and Tullow believe may hold significant oil comparable to the world class regional discoveries identified by Exxon. Eco Atlantic expects to confirm a number of drilling targets with this increased 3D Survey, ahead of drilling of the first well in Orinduik, hopefully in 2018.”