The Stena Drilling-owned Stena Forth drillship has been mobilized from West Africa – where it has been operating for Tullow – and is now en route to the Tullow-operated Orinduik Block, which is located offshore Guyana.
The Stena Forth has been mobilized for Tullow and its partners Total and Eco (Atlantic) Oil & Gas for a committed two-well campaign. The first exploration well is to be drilled on the Jethro Lobe prospect, as reported on December 5, 2018.
Eco informed on Monday that the drillship is expected to reach the Orinduik Block on or around June 24, 2019, and spud the Jethro Lobe prospect offshore Guyana on or around June 26, 2019.
The Stena Forth was actively drilling for Tullow on an existing contract immediately prior to its transition to Guyana and is fully crewed with experienced personnel, which will allow a smooth transition and less rig-up and training time, Eco said.
The second well is the Joe prospect, a few kilometers away. The two wells are not contingent and will be drilled immediately one after the other.
Following Eco’s placing and subscription completed on April 10, 2019, the company has a cash balance today of approximately $35 million and is funded for its share of up to a further six potential new exploration or development wells in addition to the Jethro Lobe and Joe wells.
Work program expanded beyond requirements
Colin Kinley, Chief Operating Officer commented: “The mobilization of the Stena Forth is the final stage of a long, conservative and quality-controlled process to plan and drill the initial two wells on Orinduik. The Block license was applied for in March 2014 and was awarded to Eco and Tullow in January 2016 with a first well commitment for 2021/2022. With 13 discoveries, so far totaling over 5.5bboe on Exxon’s adjacent Stabroek Block in the past three years, and with our strong commitment to Guyana, the Joint Venture partners have since expedited and significantly expanded their work program far beyond and ahead of the committed requirements.
Kinley added: “Our team, together with Tullow and Total, have comprehensively interpreted the nearly 3,000 km2 of 3D seismic data we shot over and beyond Orinduik and have selected the first two targets that we feel will allow us to accelerate the Block’s development. With the Stena Forth now mobilizing westwards to Guyana waters, we are on course to drill a pair of potentially transformational wells for the company, for the Block partners, and for Guyana.
“We understand this play well and we are confident in our interpretation as supported by a relatively high Chance of Success, estimated at over 40% for both the Jethro and Joe prospect. Whatever the outcome of the two planned wells, we have enough capital for a multi well drilling campaign. We know that there are hydrocarbons on the Block, and good quality sands like those on Stabroek, therefore the main risks are the quality of the seal and the presence of a trap. Thanks to our successful $17 million placement and subscription in April, we have a cash balance today of over $35 million so we are in the fortunate position of being fully funded to drill up to six additional wells on Orinduik, across the fifteen identified prospects.
“The two wells will test both the Upper and Lower Tertiary aged turbidites, while Jethro will also be drilled down to the Cretaceous section. Our focus is on near-term oil production and we have ordered our exploration program around risking, development and deliverability of oil for the people of Guyana and our stakeholders.”
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