Along with its exploration partners – Tullow Oil, Total / Qatar – the AIM-quoted firm is hoping to confirm a fresh well schedule in the third quarter, with drill-bits set to turn in 2022.
The explorer said its partner and operator of the Orinduik Block, (), is confident in the technical advancement and progression towards drill target selection in the third quarter of 2021.
It will follow the completion of desktop work this summer to reprocess seismic data.
Progress on this timeline will see fresh exploration drilling offshore Guyana in 2022.
Eco told investors that the Orinduik exploration partners (comprising Tullow, Total/Qatar and Eco) have significantly advanced the exploration of the Orinduik Block over the past 18 months.
Work focussed on the in-depth analysis and evaluation of the previously drilled Joe and Jethro wells and they have an improved understanding of this tertiary play in the northern quadrant of the block.
Meanwhile, Tullow and Repsol’s Carapa discovery updip and inboard of the Orinduik Block has boosted the Cretaceous play in the block and it is now being focussed upon.
Tullow has identified and prioritised prospects being focussed on exploration targets that are on trend with Exxon’s large-scale Liza project and the Carapa discoveries.
“The JV geoscience team will continue to focus on the regionally proven light oil Cretaceous Turbidite plays on trend with the Liza and Carapa discoveries on which we have spent a great deal of time conducting technical analysis to define the prospectivity, element by element, within this sector,” said Colin Kinley, Eco chief operating officer.
“We are seeing very material independent and stacked prospects and will define a ranking of these targets in the coming fall, which we are prepared and budgeted for, and (assuming JV approval) which will enable us to drill on the play in 2022.”
Kinley highlighted that with a comparatively high level of exploration activity Guyana is bucking the wider industry trend.
“With the exception of Guyana, exploration activity has been slow since before the pandemic, and with capital available for drilling shifting towards renewables, the issue has been further compounded.
“As the world economies begin to recover, we now expect to see demand for new exploration increasing, to bridge the deficit between renewable capacity and growing energy demand.
“The Guyana / Suriname Basin is set to mature from its current 10 billion plus discovered barrels, and current 120,000 BBbls/Day, to potentially 10 FPSOs and over a million barrels of production per day, expected mid-way through this decade.
“This, supported by estimated breakeven prices of US$35, US$25 and US$32 per barrel recently reported by Hess in respect of discoveries on the nearby Stabroek block in the same region, proves extremely positive for the Orinduik partners and company stakeholders. This has motivated the drive to additional drilling.”
Read More: Eco Atlantic Oil & Gas Ltd eyes drill news in coming months