Eco Atlantic upbeat on recent drilling in Guyana

(Sharecast News) - Guyana-focussed exploration company Eco Atlantic Oil & Gas updated the market on recent trading on Friday, reporting that it ended the quarter to 31 March with cash and cash equivalents of CAD 25m (£15.37m).
The AIM-traded firm noted that, during the first quarter of the financial year, it completed its previously-announced private placement, raising net proceeds of CAD 21.6m.

As at 30 June, it had total assets of CAD 43.8m, total liabilities of CAD 5.7m, and total equity of CAD 38.1m.

On the same date, it had CAD 42.2m in cash and cash equivalents.

As of Friday, the company said it currently had approximately CAD 35.7m in cash and cash equivalents.

On the operational front, the firm had announced a major oil discovery on its Orinduik offshore petroleum license in Guyana on 12 August.

It said the Jethro-1 exploration well was drilled by the Stena Forth drillship to a final depth of 14,331 feet in approximately 1,350 meters of water.

Evaluation of logging data confirmed that the Jethro-1 was the first discovery on the Guyana license, and comprised "high-quality" oil-bearing sandstone reservoir of lower tertiary age.

It encountered 180.5 feet of net high-quality oil pay in "excellent" lower tertiary sandstone reservoirs, which the board said supported recoverable oil resources.

The well was cased, and was now awaiting further evaluation to determine the appropriate appraisal activity.

Following the completion of the Jethro-1 well, the Stena Forth drillship would move to Eco Atlantic's next target, Joe-1.

The board said the Joe-1 location was a shallower target, and was expected to spud by the end of August.

"We ended our first financial quarter to 30 June with a very strong balance sheet, which has enabled us to comfortably and successfully drill our first well and announce our first discovery offshore Guyana," said president and chief executive officer Gil Holzman.

"This was the first well of our 2019 drilling program and begins a period of significant exploration activity.

"The year-to-date has been a transformational period for the company, and with a significant oil discovery, a very strong balance sheet and a portfolio rich with prospects and opportunities in both Guyana and Namibia, we look forward to an exciting future."