(Alliance News) - Eco Atlantic Oil & Gas Ltd on Friday commented on the oil discovery made at the Carapa-1 well in offshore Guyana and its potential meaning for the adjacent Orinduik block.
Shares in Toronto-headquartered Eco Atlantic were up 7.4% at 55.82 pence in London in morning trading.
Carapa-1 is located in the Kanuku block, off the coast of Guyana, and is directly in board of Orinduik, in which Eco Atlantic holds a 15% working interest.
On Thursday, Tullow Oil PLC said early results from drilling at the Carapa-1 well suggest the finding of oil in Upper Cretaceous sandstones. Results show the four metres of net oil pay has a sulphur content of less than 1% and indicate the Cretaceous oil in the Stabroek licence extends southwards into Kanuku, with tests putting the oil at 27 degrees API.
Tullow did note, however, that the four metres of oil at Kanuku was less than expected. Tullow holds a 38% interest in Kanuku and a 60% interest in Orinduik. Total EP Guyana BV, part of Total SA, holds a 25% interest in Orinduik having exercised its option to acquire part of Eco Atlantic's interest in September 2018.
Eco Atlantic Chief Operating Officer Colin Kinley said: "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."
At present, Eco Atlantic is preparing an updates competent persons report, which will include recent discoveries in the tertiary section of Irinduik, as well as Exxon Mobil Corp's further regional 2019 discoveries.
By Anna Farley; annafarley@alliancenews.com
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