A new competent persons resource report on the Tullow Oil-operated Orinduik Block, offshore Guyana, has shown a 29% increase in gross prospective resources to 5,141 MMBOE, according to a partner in the block.

The JV Partners in the Orinduik are Eco Atlantic (15% WI), Tullow (operator, 60% WI), and Total (25% WI).

Eco Atlantic on Monday announced the publication of an updated NI 51-101 compliant Competent Persons Report (CPR) on the Orinduik Block compiled by Gustavson Associates, an independent third-party auditor.

The JV Partners in the Orinduik Block, Tullow and Total, along with Eco Atlantic, have an operations committee meeting scheduled in early February 2020 to evaluate recent drilling results, define drilling targets, and consider the budgets and dates for future drilling, Eco Atlantic informed on Monday.

In late 2019, the JV partners approved a provisional budget for 2020 subject to JV drilling approvals. Eco Atlantic has a cash position with over $20 million cash and cash equivalents and is fully funded for its share of further appraisal and exploration drilling at Orinduik of up to $120m (gross).

According to Eco, there has been a significant increase in gross prospective resources from previous estimate of 3,981 MMBOE in March 2019 to 5,141 MMBOE.

Eco also said that 22 prospects had been identified on the Orinduik Block, including 11 leads in the Upper Cretaceous horizon. Majority of the project leads have over a 30% or better chance of success (COS), enhanced by the recent discovery of light oil on the Kanuku block to the south of Orinduik, Eco added.

'Significant exploration potential'

Colin Kinley, co-founder and Chief Operating Officer of Eco Atlantic, commented: “The understanding of our resources has gained strength and momentum with the discoveries we made in the Tertiary last summer and the recent discovery of light oil in Carapa-1, made on the Kanuku block to the south of us. This has also been driven by the discoveries of over 8 billion barrels of oil immediately East of us by ExxonMobil.

“Our choice was to first test the Tertiary section and to take the risk of opening a new play and a new opportunity for Guyana. As previously announced, this younger section delivered a significant resource of heavy oil pay. Heavy oil is more challenging to produce than conventional lighter oils, but remains a marketable hydrocarbon with increasing demand world-wide, as other heavy oil resources have dropped offline. Interpretation of this play has continued and has seen material growth in the interpreted resources. The company is conducting in depth evaluation of the economics of this play, with independent third party economic advisory support.

“The Cretaceous pathway of lighter weight oils from the source kitchen to the north, through the Liza sands and through the recent discovery of light oil in Carapa-1 to the south confirms our theory and interpretation of transmission of high-quality oil across the Cretaceous sand channels and traps within the Orinduik Block.

“We have seen a growth of the overall oil numbers with the thickness of section and a greater understanding of the areal extent and thicknesses of our sands. Most importantly, however, is our exploration risking, with confirmation that over half of our 22 leads now have an independently assessed 30% or greater COS. Our confidence in the play continues and was greatly enhanced with the now proven light oil in the Cretaceous section immediately to the south.

“Significant exploration potential is what brought us into Guyana before the first barrel was discovered by ExxonMobil. The elements are all here. We know that the geology and the geography support us and we have a great team to fine tune the next drilling targets. We have strong partners in Eco and on the block, so as we define our targets, we are well funded and are considering our options to drill as soon as practically possible.”

It is also worth reminding that, in December 2019, the Orinduik partners elected to enter the next exploration phase of the Orinduik Petroleum Agreement signed on January 14, 2016, and submitted their official notice to the Department of Energy of the Government of Guyana.

The first renewal period, which started on January 14, 2020, would see the JV Partners maintain control of the license for further three years, through to January 13, 2023, and until the second renewal period.