16th Sep 2019 08:16
(Alliance News) - Tullow Oil PLC has made another oil discovery on the Orinduik block in Guyana, the FTSE 250 firm announced on Monday.
Tullow shares were up 9.7% at 243.90 pence in early trading in London.
Drilling at the Joe-1 exploration well confirmed 14 metres of net oil pay in the Upper Tertiary age. This is the first discovery in the Upper Tertiary, Tullow said.
Tullow and partners will now look at the Joe-1 data alongside that from the Jethro-1 discovery made in August. The "significant" discovery at Jethro found 55 metres of net oil pay in the Lower Tertiary.
Tullow owns 60% of Orinduik, with Total SA holding 25% and Eco Atlantic Oil & Gas Ltd owning 15%. Tullow's announcement was noted in a separate statement by London-listed Eco Atlantic, whose shares were up 10% at 193.00p. In Paris, Total shares were up 3.2% at EUR48.12.
Tullow's Exploration Director Angus McCoss commented: "I am very pleased we have made back-to-back discoveries in Guyana and successfully opened a new, shallower play in the Upper Tertiary age of the Guyana basin with our second well.
"The Joe-1 discovery and its surrounding prospects represent another area of significant potential in the Orinduik block and we are greatly looking forward to the next phase of the programme as we continue to unlock the multi-billion barrel potential of this acreage."
Gil Holzman, co-founder & chief executive at Eco Atlantic, added: "Yet another oil discovery for Eco in Guyana, and we are delighted to have been successful on both of our first two wells. We share this success with the people of Guyana and our great partners at Tullow and Total.
"With Jethro and Joe as two proven oil discoveries on our block, in two separate horizons, and with multiple drilling targets in front of us, we are in a great place. We are well funded and budgeted to drill more prospects, as we continue to develop a world-class asset for Guyana and for our shareholders."
"The Joe-1 discovery, only a month after the Jethro-1 discovery, is very material for us as it has proved our theory of shallow low-cost plays exists in Guyana, as we are up-dip from the huge Exxon fields at Liza and Turbot areas, with good quality sands and oil that is clearly present on
our block," Holzman continued.