Eco (Atlantic) Oil & Gas Limited (LON:ECO, TSX-V:EOG) has noted Exxon Mobil Corp’s (NYSE:XOM) eighth discovery offshore Guyana as it provided an update on its own operations in the region.
The AIM-listed oil and gas producer said Exxon’s Longtail-1 well, located at the Stabroek Block which is adjacent to Eco’s own Orinduik Block, had encountered around 78 meters of high-quality oil-bearing sandstone reservoir and was successfully drilled to 5,504 metres in depth.
At its Orinduik Block, the group said it had nearly completed the interpretation and processing of 3D seismic survey data and had received the Pre-Stack Depth Migration (PSDM) data and next week would receive the conditioned PSDM stacks from Tullow Oil PLC (LON:TLW).
Eco added that all the data that was received to date had already been delivered to oil major Total, with Eco anticipating that the final batch of data would be delivered to Total E&P Activitiés Pétrolières (Total) for analysis in the coming weeks, with the final report expected to be delivered in August.
Total currently has an option agreement with Eco to acquire a 25% working interest in the Orinduik Block from Eco Guyana within 120 days of the final delivery of the 3D seismic survey data report.
Colin Kinley, Eco chief operating officer, said: “Exxon’s Longtail-1 discovery in the Stabroek Block, further inboard of the Liza field, further demonstrates the world class significance of this region of the Guyana/Surinam Basin.
He added: “Eco and its Block partners have now approved the kick-off of drilling engineering and the environmental permitting process that was originally slated and budgeted for later this year. Eco’s location along the slope is defining leads now in similar sands and within the same age formation that are in 70 to 300 meters of water. That means both Jack-up Drilling targets (<100m water) and Semisubmersible (<500m water) drilling. Both reflect very positive economics for development.”
In lunchtime trading Thursday, Eco Atlantic shares were up 3.2% at 31.8p.