Eco (Atlantic) contracts the Stena Forth drillship to drill Orinduik Block
Eco (Atlantic) Oil and Gas and partners in the Orinduik Block, offshore Guyana, Total E&P Activités Pétrolières and Tullow Guyana (Operator), contracted a rig, the Stena Forth, a sixth-generation drillship from Stena Carron Drilling, to drill the Jethro-Lobe prospect on the Orinduik Block offshore Guyana. The Stena Forth is a harsh environment, dynamically positioned Class 3 drillship, capable of operating in up to 10,000 feet of water to a maximum drill depth of 35,000 feet. The Stena Forth, currently drilling off West Africa, is fully crewed and operating.
The contract with Stena secures the rig for transport at the end of May, targeting a June 2019 spud date. The agreement also defines a window for a second well on the Orinduik Block to be drilled after the Jethro-Lobe well is drilled. Long lead items, including the well heads and casings for two wells,were secured and ordered. Orinduik partners are reviewing plans for a second well and anticipate formalizing them in the coming weeks
The Stena Forth was selected by the Partners for its best overall economics and technical capacity, following an extensive review of alternatives. There are significant benefits in utilizing this drillship, as it is operating to the partnership’s standards, already being mobilized in a similar drilling environment with an experienced crew, and the Operator has a good understanding of the operating requirements.
The Partners have also approved the majority of the rig servicing contracts to ensure smooth and timely operations with the Stena Forth. Wellheads have been ordered from DrillQuip, and support ship and infrastructure agreements are now underway.
Colin Kinley, Chief Operating Officer for Eco Atlantic stated:
‘Eco is pleased to have secured the Stena Forth Drillship for this initial drill programme on Orinduik. This state-of-the-art Class 3 Rig has overall capacity ratings at close to double our operating requirements. The rig is operating, which is a great advantage to the partners. The partners selected the 250 million barrel Jethro-Lobe Tertiary prospect in December, which is only a few kilometers away and up dip from multiple Exxon discoveries in the region and in the same proven resource intervals. While the Jethro-Lobe is a Tertiary target, which we believe is similar to the Exxon Hammerhead discovery that appears to extend onto Orinduik, we will also drill down to test the Cretaceous section below Jethro.’
Source: Eco (Atlantic) Oil & Gas
DOF Finds Vessels Work in Guyana and Saudi Arabia
DOF Subsea has secured multiple contracts for its vessels in Guyana and Saudi Arabia from undisclosed clients.
In Guyana, the Skandi Neptune ROV construction support vessel has already started survey work.
In addition, the second campaign is planned for the vessel within 2019 to conduct field development construction support activities.
Skandi Neptune will be joined by two PSV’s Skandi Foula and Skandi Buchan in the second quarter of 2019 to carry pipe and subsea hardware for the main installation vessels.
Furthermore, Geoholm multipurpose vessel began preparations in Singapore for marine and ROV operation in the Red Sea offshore Saudi Arabia.
The vessel will support 3D Ocean Bottom Node (OBN) survey projects in Saudi Arabia in more than 700 vessel day campaign, the company noted.
These collective awards provide approximately NOK 425 million in additional backlog to the group of which 62% in 2019.
Mons Aase, CEO DOF and DOF Subsea, said, “This is an exciting award for us, entering a new area and at the same time strengthen our position as a global subsea IMR provider. Guyana is a growing region where we expect increased activity going forward.”
CGX and Frontera execute Guyana farm-in deal
Canada’s CGX Energy and Frontera Energy have executed a farm-in joint venture agreement covering CGX’s two shallow water offshore Petroleum Prospecting Licenses in Guyana, the Corentyne and Demerara Blocks.
These agreements remain subject to Guyanese government approval.
CGX and Frontera also announced that they had entered into an amended and restated bridge loan agreement, pursuant to which Frontera had agreed to extend the term of CGX’s April 25, 2018, bridge loan to September 30, 2019, and to update certain other terms and conditions.
Frontera has the option to convert up to $8.8 million principal amount of the loan into CGX common shares at a conversion price of $0.22 per share, at any point on or before maturity of the loan.
To remind, Frontera and CGX last December entered into a letter of agreement to enable CGX to finance the drilling costs related to the Corentyne and Demerara offshore blocks, which were 100% owned and operated by a subsidiary of CGX.
It was agreed that, upon completion of the agreement and receipt of regulatory approval for the farm-in, Frontera would acquire a 33.33% working interest in the two blocks in exchange for a $33.3 million signing bonus. Frontera agreed to pay one-third of the applicable costs plus an additional 8.333% of CGX’s direct drilling costs for the initial exploratory commitment wells in the two blocks. CGX would be the operator with assistance from Frontera.
In January 2019 the two companies amended the letter of agreement to extend the time of launch of the equity financing in the amount of approximately $20 million. Frontera said in January that the launch would occur on or before February 6, 2019, and anticipated to be completed on or before March 15, 2019, subject to regulatory approval.
Also, CGX and Frontera amended the letter agreement to extend the time by which CGX Resources Inc and Frontera would enter into a farm-in joint venture agreement covering the two blocks on or prior to February 6, 2019.