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Orinduik Block

 

The United States Geological Survey ranks the Guyana-Suriname basin as the world’s second-most prospective, underexplored offshore basin, with an estimated 13.6 billion barrels of oil and 32 trillion cubic feet of natural gas yet to be discovered.

It is in this basin that Eco Atlantic holds a 40% working interest in a significant licence, which is just 6.5 km from ExxonMobil’s world class Liza oil discovery.

ExxonMobil and Hess recently confirmed that the deep-water Liza Field is officially the largest commercial find in South America in 50 years and holds an estimated between 2.25 and 2.75 billion barrels of recoverable oil, making it one of a handful of billion-barrel discoveries in the last half-decade. The Liza Field is adjacent to Eco Atlantic’s Orinduik Block.

Licence Overview - Orinduik Block

In January 2016, Eco Atlantic signed a Petroleum Agreement and is party to an Offshore Petroleum Licence with the Government of Guyana and Tullow Oil for the Orinduik Block offshore Guyana. The 1800 km² Orinduik block is situated in shallow water, 170 km offshore Guyana in the Suriname Guyana basin, and is located 6.5 km from the recent Exxon Mobil Liza discoveries.

Eco has a 40% working interest and Tullow Oil has a 60% working interest. Tullow Oil will be the operator and will pay Eco Atlantic US$0.4m and fully carry Eco Atlantic for approximately C$3m of the 2D and 3D survey for an initial 4 years work commitment. Details of the work programme are in the table below.

In September 2017, Eco Atlantic announced that its subsidiary, Eco Atlantic (Guyana) Inc. entered into an option agreement on its Orinduik Block with Total E&P Activités Pétrolières, a wholly owned subsidiary of Total SA. Pursuant to the option, Total paid an option fee of US$1,000,000, at its sole discretion, to Farm-in to the Orinduik Block for an additional payment in cash of US$12,500,000 to earn the 25% Working Interest. The exercise of the Option must be made within 120 days of completion of processing of the 3D seismic. The survey acquisition was completed on September 5th 2017 and processing is expected to take 2-3 months.

Following exercise by Total of the option, the Block Working Interests will be as follows:

Tullow – 60% (Operator)
Total – 25%
Eco Guyana – 15%

Committed work programme
Initial 4 year licence term
  • Review existing regional 2D data and complete 3D survey (Complete)
  • Conduct (complete) and process 1000 km2 3D program (in process)
First 3 year renewal period
  • Drill one exploration well (contingent)
Second 3 year renewal period
  • Drill one exploration well (optional)