TIDMECO
RNS Number : 4599F
Eco (Atlantic) Oil and Gas Ltd.
21 February 2018
21 February 2018
ECO (ATLANTIC) OIL & GAS LTD.
("Eco Atlantic", "Company", "Eco" or, together with its
subsidiaries, the "Group")
ECO ANNOUNCES GUYANA OPERATIONS UPDATE
Eco (Atlantic) Oil & Gas Ltd. (AIM: ECO, TSX-V:EOG), is
pleased to provide an operations update on its Orinduik Block
offshore Guyana. Eco (Atlantic) Guyana Inc., the Company's
subsidiary, currently holds a 40% Working Interest ("WI"), and
Tullow Oil ("Tullow"), Operator, holds a 60% WI.
Highlights:
-- Eco and Tullow have identified leads on the Orinduik Block
with the potential to contain in excess of 1 billion barrels of oil
equivalent ("boe")
-- Leads are updip from the Liza discoveries located on the Stabroek Block
-- Leads are currently being evaluated and matured to prospect
status on recently acquired 3D survey data
-- Gustavson Associates of Colorado contracted to provide
independent interpretation services and a CPR under AIM Guidelines
and an NI-51-101 report under TSX Guidelines
-- Total is now interpreting the first batch of the 3D survey
data from the Orinduik Block, completed last year.
-- As per the option agreement with Total E&P Activités
Pétrolières ("Total") announced on 26 September 2017, delivery of
the final processed data to Total will trigger a formal review
period of up to 120 days within which Total must determine whether
to exercise its option to acquire a 25% WI in the Orinduik Block
from the Group. A further announcement will be released once the
formal review period commences.
-- Exxon recently announced resource estimates in excess of 3.2
billion recoverable oil-equivalent barrels for the Stabroek Block,
adjacent to the Orinduik Block and the implementation of
engineering and construction work for the field
-- First oil from the Liza discoveries stated by Exxon to be
expected by March 2020, with production forecast to increase to in
excess of 340,000 bbls/day by 2022
As previously announced, Eco has signed an option agreement with
Total ("Total Option Agreement"), under which Total paid the Group
US$1 million for the right to farm-in and acquire a 25% WI in the
Orinduik Block from Eco for a final consideration of US$12.5
million. The Orinduik Block is on the continental shelf margin
updip of the prolific Exxon discoveries, in close proximity to the
Liza discoveries. Exxon recently announced resource estimates in
excess of 3.2 billion recoverable oil-equivalent barrels in respect
of the discoveries and the implementation of engineering and
construction work for the Liza field. This is expected to produce
first oil from the Liza discoveries by March 2020, with production
forecast in excess of 340,000 bbls/day by 2022. Exxon has also had
two subsequent discoveries, both of which have development plans
underway.
Based on the interpretation of approximately several thousand
kilometers of 2D, regional well logs and seismic correlations to
the Stabroek wells, Eco and Tullow have identified leads on the
Orinduik block, which they estimate could contain in excess of 1
billion boe updip of the Liza discoveries, several of which are age
equivalent to the Liza reservoir. As announced on 5 September 2017,
the Company and its operating partner Tullow completed a 2,550
km(2) 3D seismic survey, acquired by Western Geophysical. The
high-resolution seismic data is currently being processed at PGS
Geophysical AS ("PGS") in the UK, with both Tullow and Eco already
interpreting this data.
Eco also announces today that, in addition to its USA based
technical team at Kinley Exploration, it has contracted Gustavson
Associates ("Gustavson") of Colorado to provide independent
interpretation services. Gustavson will also provide a CPR under
AIM Guidelines and an NI-51-101 report under TSX Guidelines.
Gustavson, which has extensive experience in providing resource
volumetrics and risking reports for public companies, has worked
with the Eco team for many years and has had specific previous
experience in the Guyana Basin.
Eco confirms it has now received the initial, conditioned
PreSTM, in addition to Fast Track and initial PresSTM data sets
from Tullow and, in accordance to the Total Option Agreement, has
forwarded this to Total for their interpretation. Eco will receive
the next phase of 3D inversion data from Tullow in the coming
weeks. In accordance to the Total Option Agreement, once the final
processed products/data have been delivered to Total a formal
review period will begin, under which Total will have up to 120
days to exercise the Farm-In Option and pay Eco an additional
US$12.5 million. Eco will announce the delivery of the completed
processed data set at the appropriate time.
Colin Kinley, Director and Chief Operating Officer of Eco
Atlantic, commented:
"This is an exciting time for Eco, and we are being careful to
ensure a comprehensive and conservative interpretation of the
Orinduik data as it is being delivered. We have a great deal of
faith in the quality of seismic data processing by PGS, whom we
have used many times in the past. Tullow also has a team of leading
industry experts who understand the play and are providing an
excellent paced and thorough oversite of the data. We are sharing
the data with Total now, who have worked on projects with Tullow in
the past, as they have significant experience in this stage of the
processing and interpretation. This will help the group define
drilling targets.
I was delighted that we were able to secure Gustavson as an
independent team to work with us on Guyana. Gustavson have
extensive expertise and knowledge of the region and will provide a
CPR and NI-51-101 on the block as the interpretation matures.
Drilling is expected to commence in late 2018 or early 2019 and the
potential scale of this resource requires a detailed strategy and
confident interpretation."
For more information, please visit www.ecooilandgas.com or
contact the following:
Eco Atlantic Oil and Gas +1 (416) 250 1955
Gil Holzman, CEO
Colin Kinley, COO
Alan Friedman, VP
Strand Hanson Limited (Financial +44 (0) 20 7409
& Nominated Adviser) 3494
James Harris
Rory Murphy
James Bellman
Brandon Hill Capital Limited +44 (0) 20 3463
(Joint Broker) 5000
Oliver Stansfield
Jonathan Evans
Robert Beenstock
Pareto Securities Limited (Joint +44 (0) 20 7786
Broker) 4370
+44 (0) 20 7786
Soren Clausen 4382
+44 (0) 20 7786
4398
Davide Finelli +44 (0) 20 7786
Matilda Mäkitalo 4375
Peterhouse Corporate Finance +44 (0) 20 7469
(retail market advisor) 0930
Eran Zucker
+44 (0) 20 7138
Blytheweigh (PR) 3204
Nick Elwes
Tim Blythe
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014.
Colin Kinley, Chief Operating Officer of Eco Atlantic, has
reviewed and approved the technical information contained within
this announcement in his capacity as a qualified person, as
required under the AIM rules. Mr Kinley has over 35 years'
experience in the oil and gas industry.
Notes to editors
Eco Atlantic is a TSX-V and AIM listed oil and 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 and AziNam.
In Guyana, Eco Guyana holds a 40 per cent. working interest
alongside Tullow Oil (60 per cent.) in the 1,800 km(2) Orinduik
Block in the shallow water of the prospective Suriname Guyana
basin. The Orinduik Block is adjacent and updip to the deep-water
Liza Field, recently discovered by ExxonMobil and Hess, which is
estimated to contain as much as 3.2 billion barrels of oil
equivalent, making it one of a handful of billion-barrel
discoveries in the last half-decade.
In Namibia, the Company holds interests in four offshore
petroleum licences totaling approximately 25,000 km(2) with over
2.3 billion barrels of prospective P50 resources in the Wallis and
Lüderitz Basins. These four licences, Cooper, Guy, Sharon and Tamar
are being explored with partners, including Tullow Oil, AziNam and
NAMCOR. Significant 3D and 2D surveys and interpretation have been
completed with drilling preparations expected to begin in 2018.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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