The Toronto Ventures quoted oil explorer has a 40% stake in the neighbouring block, and as such feels a significant boost along with the rest of Guyana’s emerging oil sector.
ExxonMobil has confirmed a new world-class oil discovery offshore Guyana which gives a major boost to Toronto Ventures quoted Eco (Atlantic) Oil & Gas Ltd (CVE:EOG), which has adjacent acreage.
The Liza-2 well, in the Stabroek block, about 120 kilometres off the Guyana coastline, confirmed a world-class new discovery for the American oil major with recoverable resources estimated in the range of 800mln to 1.4bn oil equivalent barrels.
It was a follow up to Liza-1 which made the initial find last year.
Liza-2 was drilled to a depth of 5,475 meters, in 1,692 meters of water, and it hit more than 190 feet of oil-bearing sandstone reservoirs.
Steve Greenlee, president of Exxon Mobil Exploration, said the success shows the strength of the major’s long-term investment approach and technology leadership in ultra-deepwater environments.
The Stabroek block spans some 26,800 square kilometres and it is operated by Exxon affiliate Esso Exploration and Production Guyana, which owns a 45% stake in the project, alongside Hess Corp and China’s CNOOC Nexen holding 30% and 25% respectively.
Eco, a junior exploration company valued at just C$16.75mln, meanwhile, has a 40% interest in the Orinduik Block which is located in an adjacent area to Stabroek in shallower water.
Tullow Oil is the operator and 60% stakeholder in Orinduik, and the London listed E&P is committed to covering the costs in the initial phase of exploration. The first exploration period at Orinduik last four years and it requires a review of existing 2D seismic as well as a new 3D survey.
Subsequent exploration periods will require exploration wells to be drilled.
With a 40% stake in increasingly prospective and potentially de-risked exploration, neighbouring a world-class discovery, Eco’s position could be significantly strengthened by the time drill planning and funding come closer to serious consideration.
Orinduik is in keeping with the profile of Eco’s asset portfolio, which features other offshore exploration ventures with high impact potential, where it is partnered with and surrounded by much larger oil companies.
It has four blocks offshore Namibia, in the Walvis basin, where it is in the vicinity of Repsol, Tullow, BP and Galp. Prospective resources have been estimated in excess of 20bn barrels, in aggregate.
Offshore Ghana, Eco has a 50.5% stake in the Three Points West Block located nearby to Tullow’s Jubilee field as well as other discoveries by the likes of Hess, ENI and Lukoil.