Eco notes Oil Discovery on Carapa-1 well

RNS Number : 6198Y

Eco (Atlantic) Oil and Gas Ltd.

03 January 2020

 

3 January 2020

ECO (ATLANTIC) OIL & GAS LTD.

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

Eco notes Light Cretaceous Oil Discovery on Carapa-1 well, Kanuku Block, offshore Guyana

Discovery reaffirms prospectivity of Cretaceous age light oil prospects on the Orinduik Block

Eco (Atlantic) Oil & Gas Ltd. (AIM: ECO, TSX‐V: EOG) notes the recent announcement by Tullow Oil (37.5%), in partnership with Repsol (Operator, 37.5%) and Total (25%), regarding the cretaceous age light oil discovery made at the Carapa-1 well on the Kanuku block, directly in board of the Orinduik Block offshore Guyana.

Preliminary results of drilling, wireline logging, pressure testing and sampling of reservoir fluid indicated the discovery of oil in Upper Cretaceous age sandstone reservoirs. Testing indicated that the oil is 27 degrees API, with a sulphur content of less than 1%.

A map demonstrating the location of the Orinduik block between the Liza field (and the rest of ExxonMobil's discoveries) and the Carapa-1 discovery, offshore Guyana, can be found at the below link:

https://www.ecooilandgas.com/projects/guyana/

Colin Kinley, Chief Operating Officer of Eco Atlantic, commented: 

"The Carapa discovery is very important to us technically and confirms our thinking on prospectivity on our Orinduik block. The existence of a good oil grade unaffected by sulphur in board of us is excellent news. We have a proven source kitchen to the North, with ExxonMobil and partners having defined and now producing 32 API at the Liza field to the North of us, and now a 27 API oil discovery on Carapa to the South of us. We continue to gain a good understanding of the transportation and pooling systems, and we can see the reservoirs clearly in the cretaceous. As more wells are drilled, it is becoming clearer to understand and define new drilling locations. We see very significant thick pay opportunities in the cretaceous section on Orinduik and we are currently defining our upcoming drilling plans, which we hope to have confirmed in the next few weeks.

"Eco is currently preparing an updated CPR under TSX and AIM guidelines, which will incorporate the recent discoveries in the Tertiary Section on Orinduik, ExxonMobil's additional regional discoveries in 2019 and some of the read through we see by the derisking of the cretaceous section, which is estimated to contain close to 3 Billion Barrels of oil on the Orinduik Block, that the Carapa discovery has helped define. 

"2020 is a significant year for Eco, and the discovery at Carapa is exactly what we were looking for. We now have drilling prospects that are significantly brightened and we will provide further updates regarding the CPR, analysis of our discoveries to date and upcoming drilling plans soon."

For more information, please visit www.ecooilandgas.com or contact the following:

Eco Atlantic Oil and Gas	[phone]
Gil Holzman, CEO Colin Kinley, COO Alice Carroll, Head of Marketing and IR	[phone]
Strand Hanson Limited (Financial & Nominated Adviser)	[phone]
James Harris Rory Murphy James Bellman
Stifel Nicolaus Europe Limited (Joint Broker) Callum Stewart Ashton Clanfield	[phone]
Berenberg (Joint Broker)	[phone]
Matthew Armitt Detlir Elezi
Celicourt (PR)	[phone]
Mark Antelme Jimmy Lea Hannam & Partners (Research Advisor) Neil Passmore Hamish Clegg Canaccord Genuity (North American Advisor) Simon Akit	[phone] [phone]

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014.

Notes to editors

About Eco Atlantic:

Eco Atlantic is a TSX-V and AIM quoted 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 6 Billion BOE of oil equivalent recoverable resources are estimated. First oil production is expected from the deep-water Liza Field in 2020. 

Jethro-1 was the first major oil discovery on Orinduik Block. The Jethro-1 encountered 180.5 feet (55 meters) of net high-quality oil pay in excellent Lower Tertiary sandstone reservoirs which further proves recoverable oil resources. Joe-1 is the second discovery on the Orinduik Block and comprises high quality oil-bearing sandstone reservoir with a high porosity of Upper Tertiary age. The Joe-1 well encountered 52 feet (16 meters) of continuous thick sandstone which further proves the presence of recoverable oil resources.  

In Namibia, the Company holds interests in four offshore petroleum licences totalling approximately 25,000km² with over 2.3bboe of prospective P50 resources in the Walvis and Lüderitz Basins.  These four licences, Cooper, Guy, Sharon and Tamar are being developed alongside partners Azinam and NAMCOR. Eco has been granted a drilling permit on its Cooper Block (Operator).

 

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