Tullow Oil Wildcat Discovery on Orinduik

On 12 August 2019, Anglo-Irish Tullow Oil announced the results of its Jethro-1 exploration well, offshore Guyana, the first discovery on the Orinduik licence. Tullow hosted a conference call for Analysts and Investors to talk about the result with these accompanying slides.

The high-value strike could yield over 100 million recoverable barrels and is potentially transformational for the London-listed explorer which said the substantial discovery exceeded pre-drill estimates, paving the way for more exploration wells in the future.

Paul McDade, Chief Executive Officer, said “This substantial and high value oil

discovery in Guyana is an outcome of the significant technical and commercial focus which has underpinned the reset of our exploration portfolio. It is an excellent start to our drilling campaign in the highly prolific Guyana oil province. We look forward to drilling both the Joe and Carapa prospects in our 2019 drilling campaign and the material follow-up exploration potential in both the Orinduik and Kanuku licenses.”

The Jethro-1 exploration well was drilled by the Stena Forth drillship to a Total Depth of 4,400m meters in approximately 1,350 meters of water. Evaluation of logging data confirms that Jethro-1 is the first discovery on the Orinduik license and comprises high quality oil bearing sandstone reservoirs of Lower Tertiary age. 

The well encountered 55m of net oil pay which supports a recoverable oil resource estimate which exceeds Tullow’s pre-drill forecast. Tullow will now evaluate the data from the Jethro discovery and determine appropriate appraisal activity.

This discovery significantly de-risks other Tertiary age prospects on the Orinduik license, including the shallower Upper Tertiary Joe prospect which will commence drilling later this month following the conclusion of operations at the Jethro-1 well. The non-operated Carapa 1 well will be drilled, later this year, on the adjacent Kanuku license to test the Cretaceous oil play.

Tullow Guyana B.V. is the operator of the Orinduik block with a 60% stake. Total E&P Guyana B.V. holds 25% with the remaining 15% being held by Eco(Atlantic) Guyana Inc.

ECO (ATLANTIC) OIL & GAS LTD.

(“Eco”, “Eco Atlantic”, “Company” or, together with its subsidiaries, the “Group”)

Eco Atlantic Makes Major Oil Discovery Offshore Guyana

Jethro-1 Well Proves 180.5 feet (55 Meters) of Net High Quality Pay on Orinduik Block

Eco (Atlantic) Oil & Gas Ltd. (AIM: ECO, TSX-V: EOG), today announces a significant oil discovery on the Orinduik Block, offshore Guyana. The Jethro-1 exploration well was drilled by the Stena Forth drillship to a final depth of 14,331 feet (4,400 meters) in approximately 1,350 meters of water. Evaluation of logging data confirms that the Jethro-1 is the first Discovery on the Orinduik licence and comprises high quality oil bearing sandstone reservoir of Lower Tertiary age. It encountered 180.5 feet (55 meters) of net high-quality oil pay in excellent lower Tertiary sandstone reservoirs which supports recoverable oil resources. The well has been cased, and is now awaiting further evaluation to determine the appropriate appraisal activity.

Colin Kinley, COO and Co-Founder of Eco Atlantic commented:

“Jethro is a fantastic find for us. This discovery was made due to our team at Eco and Kinley Exploration stepping out beyond the conventional exploration plays and seeking new resources through old-fashioned exploration science. The Jethro-1 well confirms the continuance of the petroleum system onto the Orinduik Block, up dip from the prolific discoveries on the Exxon operated Stabroek Block. The well has resulted in a mitigation of risk of the presence of quality reservoir sands, seal and trap parameters. We have multiple drilling targets on the block with similar geophysical characteristics and we are moving the Stena Forth drill ship immediately to its next target, Joe-1. The Joe-1 location is just a short move to a shallower target, and is expected to spud mid-August.

“The Orinduik Block, and the corner of the block where Jethro is located, were selected and pinned for drilling long before the first Exxon discovery. We appreciate the support of our partners from Tullow, Total and now Qatar Petroleum joining our quest, as well as the support of the Government of Guyana and its belief in our team.“

Gil Holzman, CEO and Co-Founder of Eco Atlantic stated:

“We are thrilled to report this exceptionally exciting discovery. This is a revolutionary moment for Eco. It has been a long path of hard work for our team, and with today’s announcement we feel our first rewards have justified our journey. We have been very confident in the prospects of the Orinduik since we first decided to make a licence application in February 2014, based on a strong recommendation from our team at Kinley Exploration.

“I always believed that Eco would create exceptional stakeholder value, for our shareholders, and the people of Guyana alike, and I am so proud that we have made this exciting discovery.

“This is a transformational event for the Company, and we now need to strategically plan for an even brighter future. With multiple targets to consider, and Joe as the next prospect to be drilled, we will now pursue our evaluation of the timing for wells to develop the Jethro field and to expediently bring it on production. We are funded for at least six additional wells.

“I want to thank the small but amazing team at Eco, the Board of Directors of Eco Atlantic, our extremely professional partners in Tullow and Total, our investors and shareholders, and the Government of Guyana for their support to date and hopefully into the future as we continue to strive to generate value for all of our supporters and partners.”

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, Director

Strand Hanson Limited (Financial & Nominated Adviser)

+44 (0) 20 7409 3494   James Harris, Rory Murphy, James Bellman

Stifel Nicolaus Europe Limited (Joint Broker)

+44 (0)20 7710 7600   Callum Stewart,  Nicholas Rhodes,  Ashton Clanfield

Berenberg (Joint Broker)                     +44 (0) 20 3207 7800   Matthew Armitt,  Detlir Elezi,

Blytheweigh (PR)                    +44 (0) 20 7138 3204  Tim Blythe,  Julia Tilley,  Jane Lenton,

Hannam & Partners (Research Advisor)                                     Neil Passmore,  Hamish Clegg

 

Eco Atlantic

Eco Atlantic is a TSX-V and AIM listed Oil & 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, Total and Azinam.

In Guyana, Eco Guyana holds a 15% working interest alongside Total (25%) and Tullow Oil (60%) in the 1,800 km2 Orinduik Block in the shallow water of the prospective Suriname-Guyana basin. The Orinduik Block is adjacent and updip to ExxonMobil and Hess Corporation’s Stabroek Block, on which thirteen discoveries have been announced and over 6bboe of oil equivalent recoverable resources are estimated. First oil production is expected from the deep-water Liza Field in 2020.

The Joe prospect is a stratigraphic channel fill and overbank sand body that trends to the northwest on the northern part of the Orinduik Block in approximately 700 meters of water. It is a Tertiary feature. The targeted prospect is estimated by Gustavson Associates to hold 148.3mmboe of gross unrisked prospective oil resources (P50) and the Chance of Success is also estimated to be 43.2%.