Eco-Atlantic Oil and Gas Limited on Friday announced that drilling operations have commenced offshore Guyana on its first exploration well, the Jethro-Lobe on the Orinduik Block.
The drilling would have commenced on Thursday, using the Stena Forth drillship and is expected to take around 40 days. Eco is fully funded for its share of up to six potential exploration or development wells on the Orinduik Block.
In light of this achievement, Chief Executive Officer of the company, Gil Holzman commented, “Today Eco Atlantic’s first Guyana well has been spud, three years ahead of our Petroleum Agreement commitment. This is the start of a hugely exciting time for the company. Jethro Lobe will test the Lower Tertiary-aged turbidities, as well [as] drilling down into the Cretaceous. As such, we await the well results with great anticipation, as they will give us an even greater understanding of the geological plays.”
He added that success on ExxonMobil’s end has assisted them in a geological assessment of similar channels on their Orinduik Block.
“The huge success which ExxonMobil has had on the neighbouring Stabroek Block has aided our geological assessment of the many similar channel systems in our Orinduik Block. With fifteen leads and prospects identified on the Orinduik Block, and funding to drill six potential exploration wells beyond the two currently planned, this is only the start of a fascinating and potentially transformational time for the company.”
Eco Atlantic had announced that drilling on the Joe prospect will begin in mid-July of this year. They had stated that the Stena Forth drillship will move directly to the Joe after it finishes drilling the Jethro Lobe Well in the Orinduik Block.
It is understood that the Joe is located in approximately 650 metres of water and will cost Eco approximately US$3 million to drill. A recently published report from international company Gustavson Associates has estimated that the well has a 43.2 per cent chance of success.
Eco’s partner, Tullow, had disclosed in February that it was bringing forward its drilling programme from the previously scheduled end of the year to the second quarter. It had announced that the Jethro prospect would be drilled in June. So far, plans have been announced to drill three wells here namely the Jethro-Lobe, Joe and Carapa.
Meanwhile, oil-giant ExxonMobil has deployed four drillships for exploration purposes, where 13 massive discoveries were made. The fleet comprises of the Stena Carron, which is working at the Longtail 1 discovery; the Noble Bob Douglas at the Liza Phase 1; the Noble Tom Madden at the Yellowtail Well and Noble Don Taylor.
ExxonMobil had said there is potential for at least five floating production, storage and offloading (FPSO) vessels on the Stabroek Block producing more than 750,000 barrels of oil per day by 2025.
Startup of the Liza Phase 1 development is on track to begin by the first quarter of 2020 and will produce up to 120,000 barrels of oil per day utilising the Liza Destiny FPSO, which is expected to arrive in the country in the third quarter. Liza Phase 2 is expected to startup by mid-2022.