Eco (Atlantic) Oil & Gas Ltd. (AIM: ECO, TSX‐V: EOG), is pleased to announce the publication of an updated NI 51-101 compliant Competent Persons Report ("CPR") on the Orinduik Block offshore Guyana ("Orinduik Block"). The CPR was compiled by Gustavson Associates LLC, of Boulder Colorado, USA, an independent third-party auditor.
· Significant increase in Gross Prospective Resources to 5,141 MMBOE (771 MMBOE net to Eco) from previous estimate of Gross Prospective Resources of 3,981 MMBOE in March 2019.
· 22 prospects identified on Orinduik Block including 11 leads in the Upper Cretaceous horizon.
· Majority of the project leads have over a 30% or better chance of success (COS), enhanced by the recent discovery of light oil on the Kanuku block to the south of Orinduik.
· Leads in the Tertiary aged section estimated to contain 1,204 MMBOE, and within the Cretaceous section are estimated to contain approximately 3,936 MMBOE.
· Two targets in the Cretaceous horizon (Amaila/Kumaka and Iatuk-D) are identified as having in excess of 725 MMBOE each.
The JV Partners in the Orinduik Block, Tullow and Total, along with Eco Atlantic, have an Operations Committee meeting scheduled in early February 2020 to evaluate recent drilling results, define drilling targets, and consider the budgets and dates for future drilling. In late 2019, the JV Partners approved a provisional budget for 2020 subject to JV drilling approvals. Eco Atlantic has a robust cash position, with over US $20 million cash and cash equivalents (as at 30 September 2019), and is fully funded for its share of further appraisal and exploration drilling at Orinduik of up to US$120m (gross).
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).
Colin Kinley, co-founder and Chief Operating Officer of Eco Atlantic, commented:
"We are pleased to announce a new and updated CPR for our Orinduik Block offshore Guyana. The understanding of our resources has gained strength and momentum with the discoveries we made in the Tertiary last summer and the recent discovery of light oil in Carapa-1, made on the Kanuku block to the south of us. This has also been driven by the discoveries of over 8 billion barrels of oil immediately East of us by ExxonMobil.
"Our choice was to first test the Tertiary section and to take the risk of opening a new play and a new opportunity for Guyana. As previously announced, this younger section delivered a significant resource of heavy oil pay. Heavy oil is more challenging to produce than conventional lighter oils, but remains a marketable hydrocarbon with increasing demand world-wide, as other heavy oil resources have dropped offline. Interpretation of this play has continued and has seen material growth in the interpreted resources. The Company is conducting in depth evaluation of the economics of this play, with independent third party economic advisory support.
"The Cretaceous pathway of lighter weight oils from the source kitchen to the north, through the Liza sands and through the recent discovery of light oil in Carapa-1 to the south confirms our theory and interpretation of transmission of high-quality oil across the Cretaceous sand channels and traps within the Orinduik Block.
"We have seen a growth of the overall oil numbers with the thickness of section and a greater understanding of the areal extent and thicknesses of our sands. Most importantly, however, is our exploration risking, with confirmation that over half of our 22 leads now have an independently assessed 30% or greater COS. Our confidence in the play continues and was greatly enhanced with the now proven light oil in the Cretaceous section immediately to the south.
"Significant exploration potential is what brought us into Guyana before the first barrel was discovered by ExxonMobil. The elements are all here. We know that the geology and the geography support us and we have a great team to fine tune the next drilling targets. We have strong partners in Eco and on the block, so as we define our targets, we are well funded and are considering our options to drill as soon as practically possible."