The Stena Forth drillship has commenced the spudding of the Jethro Lobe well on the Orinduik block and the results are expected to be ready by mid-August, says Chief Executive Officer of Eco-Atlantic Gil Holzman.
The CEO noted that the well will take about 40 days for drilling and the licence holders, which include Total and Tullow, are hopeful for discovery within 35 days. He further noted that this is going to be the biggest well that will be drilled for Eco Atlantic. Holzman noted that he is confident about the chances of success for the first well given the outstanding Stabroek block discoveries.
Holzman reminded that in the last three years, Guyana’s basin has seen discoveries which total 5.5 billion barrels of oil equivalent reserves and counting. This is as a result of the 13 successful wells drilled by ExxonMobil.
“It is one of the hottest exploration areas in the world…so the industry and investors are looking into the well we have to drill as it is the first to be drilled by another licence holder since those Stabroek block discoveries. Exxon drilled 15 wells with 13 discoveries and that is about a 90 per cent success rate and this is quite unusual. But they have been working the block for several years,” expressed the Eco CEO.
He further noted that Exxon understands that most of the oil is along the slope of the basin and this is exactly where the Orinduik block is located.
Holzman said, “So we hope that by what we see, that we have same channel characteristics and the same reservoir…We hope to imitate their success and come up with discoveries of our own. Even if we don’t hit on Jethro and the second well which is Joe, Tullow, and Total identified more than 15 drill targets on the block and we are fully funded for an additional six wells. We definitely believe that our block is prospective for oil.”
The Eco CEO noted that the Joe prospect will take less time to drill. It is expected to be completed in 20 days with the results coming out in the second week of September. Holzman noted that Eco Atlantic has no interest in being a producer, but rather, its interest lies in increasing shareholder value.
The official noted that share price is expected to go up towards the release of the well results.