The 1800km2 Orinduik Block is situated in shallow water (70 – 1,400m), 170 km offshore Guyana in the Suriname Guyana basin, and is located 11km up-dip from ExxonMobil’s recent Liza discovery and 6km up-dip from Hammerhead discovery.
Eco holds a 15% working interest in Orinduik, Tullow Oil holds 60% and Total EP Guyana BV (Total) holds 25%, after exercising an option to acquire part of Eco’s interest in September 2018.
The partners have identified multiple leads on the block for which a NI 51-101 compliant CPR report was released in September 2018. A second NI 51-101 compliant CPR report was published in March 2019. The updated CPR estimates an increase in Gross Unrisked Prospective Resources P50 (Best) to 3,981.9 MMBOE on the Block, implying Net (15%) 597.3 MMBOE to Eco, identified across a total of 15 Leads on the Orinduik Block. This was up from 2,913.3 MMBOE in the previous report.
Orinduik Block Snapshot
|Water depth||70m to 1,400m|
|Licence terms||4 years + 2 renewal terms of 3 years|
Orinduik Block Milestones
In January 2016, Eco signed a Petroleum Agreement and is party to a Petroleum Licence with the Government of Guyana and Tullow Oil for the Orinduik Block offshore Guyana.
Tullow Oil is the Operator of the Block, paid past costs and carried Eco for the first 1000km2 of the 2550km2 3D Survey. Further, Tullow contributed an extensive 2D seismic data set and interpretation. The Company’s 2550km2 3D seismic survey was completed in September 2017, well within the initial four-year work commitment the Company made for the initial 1000km2.
In September 2017, Eco announced that its subsidiary, Eco Atlantic (Guyana) Inc. entered into an option agreement on its Orinduik Block with Total, a wholly owned subsidiary of Total S.A. Pursuant to the option, Total paid an option fee of US$1 million to farm-in to the Orinduik Block. An additional payment of US$12,500,000 was made when Total exercised its option to earn 25% of Eco’s working interest in September 2018.
Following exercise of the option by Total, the Block’s working interests became:
- Tullow – 60% (Operator)
- Total – 25%
- Eco Guyana – 15%
On 5 December 2018, Eco announced its first planned well out of two in the 2019 drilling program for the Orinduik Block. The net cost of the first well, named the Jethro-Lobe prospect, is expected to be approximately USD 7 million. The prospect, which will be drilled from a conventional drillship, is an Upper Tertiary stratigraphically trapped canyon turbidite in about 1,350 meters of water. The prospect is estimated to hold 250mmbbl of gross prospective resources.
On 20 February 2019, Eco announced that, along with its partners, Total and Tullow (the “Partners”), it has contracted a rig, the Stena Forth, a sixth-generation drillship from Stena Carron Drilling Limited (“Stena”), to drill the Jethro-Lobe prospect on the Orinduik Block.
On 29 March 2019, the Company announced that together with the Partners it has approved the drilling budget for the second well on the Orinduik Block. The net cost, to the Company, of the second well, named the Joe prospect, is expected to be approximately USD 3 million. The Joe prospect will be drilled using the Stena Forth and is estimated to hold 150mmbbl of gross prospective resources with the ‘Chance of Success’ estimated to be 43.2%.
Eco spud its first well, targeting the Jethro-Lobe prospect offshore Guyana on 4 July 2019, the well was drilled to a final depth of 4,400m (14,331 feet). Eco announced that the Jethro-1 exploration well encountered 55m (180.5 feet) of net high-quality oil pay in excellent lower Tertiary sandstone reservoirs which supports recoverable oil resources on 12 August 2019.
Eco’s second well on the Orinduik Block, Joe-1, is expected to spud mid-August.
Committed Work Programme:
- Initial four-year licence term: Conduct (complete) and process 1000 km2 3D seismic programme (2550 km2 was completed in 2017)
- First three-year renewal period: Drill one exploration well (contingent)
- Second three-year renewal period: Drill one exploration well (optional)