By Kiana Wilburg
The Orinduik Block—which is operated by three oil majors, Tullow Oil, Total and Eco Atlantic— now potentially holds 4B barrels of oil equivalent reserves, a significant increase from the 2.9B estimate that was reported last year.
This new data forms part of an analysis prepared by Kevin S. Weller, a Registered Petroleum Engineer at Gustavson Associates. The evaluation was completed on March 15, 2019 and released yesterday.
In its Resource Report for Certain Assets in Offshore Guyana, it was noted that the current plan by the partners is to commence the drilling of a well, the Tullow Jethro #1 by mid-June of 2019. Gustavson Associates said that the net estimated cost to Eco Atlantic Guyana Inc. is approximately US$6.75M based on the anticipated well depths and water depths.
The Consultant noted that the well will be drilled by the Stena Forth drillship. It stated that Eco is responsible for its working interest share of overheads, license fees and general operating costs, which are minimal and shared between all working interests. An additional drilling target is currently being discussed for the third quarter of 2019.
Further to this, it was noted by the Consultant that the Orinduik Block licensed area is 1,800 square kilometres (444,789 acres) where Eco, after buying out the minority interest partners, had a 40% net working interest. Since the last report dated 11 September 2018, Eco sold a 25% Working Interest to Total Exploration and Production for US$12.5M to reduce the Eco interest to 15%.
The company said that Tullow Oil is the designated Operator holding the remaining Working Interest and has carried Eco for a portion of the initial exploration programme work commitment.
With respect to the expiry date of the interest in the block, the Consultant noted that the licence was awarded in January 2016 for an initial term of four years in which the work obligations were to review the existing 2D seismic data and by the end of the fourth year, acquire and process a 3D seismic survey over the area of interest.
Gustavson Associates said that the Orinduik Block partners, to date, have fulfilled these obligations and have interpreted a 3D seismic survey that covers the majority of the Block. It said that the seismic interpretation work is ongoing at this time. It also noted that the initial term can be extended for six additional years and by year nine, a well would need to be drilled on the Block.
The current plan by the partners includes the drilling of at least two wells by the third quarter of 2019.
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