Tullow Oil and partner Eco Atlantic have identified leads on the Orinduik block offshore Guyana with the potential to contain more than one billion barrels of oil equivalent.
Tullow is the operator of the block with a 60% interest and Eco Atlantic Oil & Gas is its partner with the remaining 40% interest.
Eco Atlantic said on Wednesday that the estimate for the identified leads was based on the interpretation of approximately several thousand kilometers of 2D, regional well logs, and seismic correlations to the Stabroek wells.
The partners completed a 2,550 km2 3D seismic survey, and the data is currently being processed at PGS Geophysical in the UK, with both Tullow and Eco already interpreting this data.
Eco also said that, in addition to its US-based technical team at Kinley Exploration, it contracted Gustavson Associates to provide independent interpretation services. Gustavson will also provide a competent persons report.
The company added that it received the initial, conditioned PreSTM, in addition to Fast Track and initial PresSTM data sets from Tullow and, in accordance to the option agreement with Total, forwarded it to the French oil company for interpretation.
Under the option agreement, Total paid $1 million for the right to farm-in and acquire a 25% working interest in Orinduik from Eco.
‘Exciting time for Eco’
Eco will receive the next phase of 3D inversion data from Tullow in the coming weeks. In accordance to the agreement with Total, once the final processed data have been delivered to Total, a formal review period will begin under which Total will have up to 120 days to exercise the farm-in option and pay Eco an additional $12.5 million.
Colin Kinley, director and COO of Eco Atlantic, said: “This is an exciting time for Eco, and we are being careful to ensure a comprehensive and conservative interpretation of the Orinduik data as it is being delivered. Tullow also has a team of leading industry experts who understand the play and are providing an excellent paced and thorough oversite of the data. We are sharing the data with Total now, who have worked on projects with Tullow in the past, as they have significant experience in this stage of the processing and interpretation.
“Drilling is expected to commence in late 2018 or early 2019 and the potential scale of this resource requires a detailed strategy and confident interpretation.”
It is worth reminding that Tullow decided to enter phase two of initial period of the Orinduik block back in January.
The Orinduik block offshore Guyana is on the continental shelf margin updip of the prolific Exxon’s Liza discoveries in the Stabroek block offshore Guyana.
Exxon recently announced resource estimates in excess of 3.2 billion recoverable oil-equivalent barrels in respect of the string of discoveries it recently made in the South American country.