Sign up Australia
Proactive Investors - Run By Investors For Investors

Eco Atlantic boosted by Exxon’s world-class Guyana oil discovery

The Toronto Ventures quoted oil explorer has a 40% stake in the neighbouring block, and as such feels a significant boost along with the rest of Guyana’s emerging oi sector.
Offshore oil operations
Exxon’s Liza discovery has been estimated between 800mln and 1.4bn barrels.

ExxonMobil has confirmed a  new world-class oil discovery offshore Guyana which gives a major boost to Toronto Ventures quoted Eco (Atlantic) Oil & Gas Ltd (CVE:EOG), which has adjacent acreage.

The Liza-2 well, in the Stabroek block, about 120 kilometres off the Guyana coastline, confirmed a world-class new discovery for the American oil major with recoverable resources estimated in the range of 800mln to 1.4bn oil equivalent barrels.

It was a follow up to Liza-1 which made the initial find last year.

Liza-2 was drilled to a depth of 5,475 meters, in 1,692 meters of water, and it hit more than 190 feet of oil bearing sandstone reservoirs.

Steve Greenlee, president of Exxon Mobil Exploration, said the success shows the strength of the major’s long-term investment approach and technology leadership in ultra-deepwater environments.

The Stabroek block spans some 26,800 square kilometers  and it is operated by Exxon affiliate Esso Exploration and Production Guyana, which owns a 45% stake in the project, alongside Hess Corp and China’s CNOOC Nexen holding 30% and 25% respectively.

Eco, a junior exploration company valued at just C$16.75mln, meanwhile, has a 40% interest in the Orinduik Block which is located in an adjacent area to Stabroek in shallower water.

Tullow Oil is the operator and 60% stakeholder in Orinduik, and the London listed E&P is commited to covering the costs in the initial phase of exploration. The first exploration period at Orinduik last four years and it requires a review of existing 2D seismic as well as a new 3D survey.

Subsequent exploration periods will require exploration wells to be drilled.

With a 40% stake in increasingly prospective and potentially de-risked exploration, neighbouring a world-class discovery, Eco’s position could be significantly strengthened by the time drill planning and funding come closer to serious consideration.

Orinduik is in keeping with the profile of Eco’s asset portfolio, which features other offshore exploration ventures with high impact potential, where it is partnered with and surrounded by much larger oil companies.

It has four blocks offshore Namibia, in the Walvis basin, where it is in the vicinity of Repsol, Tullow, BP and Galp. Prospective resources have been estimated in excess of 20bn barrels, in aggregate.

Offshore Ghana, Eco has a 50.5% stake in the Three Points West Block located nearby to Tullow’s Jubilee field as well as other discoveries by the likes of Hess, ENI and Lukoil.

View full ECO profile View Profile

Eco Atlantic Oil & Gas Ltd Timeline

Related Articles

coal trucks
March 14 2018
Polish group Cobant is the latest partner and will work with AEG to develop a new "Super Fuel" that combines CoalSwitch and reclaimed coal
offshore oil rig
May 08 2018
Life has been tough in the oil sector in recent years, but things started to pick up towards the end of 2017
oil and gas operations
January 26 2018
Success in the field and in the boardroom has driven Cabot Energy to rapid growth, and it now has ambitious targets for 2018

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use