29th Mar 2019 12:22
LONDON (Alliance News) - Eco Atlantic Oil & Gas PLC on Friday said the Orinduik block partners in Guyana have approved the location and budget for a second well.
Orinduik, located offshore the South American country, is 15% owned by Eco, 25% owned by French giant Total SA, and 60% owned by Tullow Oil PLC.
The second well to be drilled is the Joe well, and work is expected to start in mid-July. This will follow the Jethro Lobe well, Eco said, which is expected to spud early June.
The Joe well is targeting 150 million barrels of best estimate oil equivalent in the Upper Tertiary, with a 43% chance of success, Eco added. Jethro Lobe is targeting the Lower Tertiary.
The net cost to Eco is around USD3 million, based on its 15% stake. This is well below the USD6.9 billion cost of the Jethro-Lobe well, because the costs of moving the rig are only included in the first well.
Eco's Chief Operating Officer Colin Kinley commented: "The approval, at this stage, of a second well is a clear indication of the partners' risking of Orinduik. All of the partners support a two well drilling campaign targeting close to 370 million barrels of gross prospective resources at 43% risking, which is well above industry averages anywhere in the world."
"Both Joe and Jethro are excellent targets and have been selected jointly between our geoscientific teams."
Eco shares were 1.0% lower on Friday at midday at 83.20 pence each. Tullow, which has not released its own statement, was 3.4% higher at 237.80p.
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