Eco (Atlantic) Oil & Gas Ltd., the oil and gas exploration company with licences in highly prospective regions in Namibia and Guyana, is delighted to announce that Gustavson Associates LLC ("Gustavson") of Boulder, Colorado has prepared a Competent Persons Report ("CPR") for the AIM Market of the London Stock Exchange along with a NI 51-101 report for the TSX Venture Exchange. This CPR is the first on Eco Atlantic's Orinduik Block ("the Block"), Offshore Guyana.
The Company announces Gross P50 (Best Estimate) 2,913.3 MMBOE and Net (40%) 1,165.3 MMBOE, identified across a total of 10 Leads on the Orinduik Block.
Eco Atlantic holds a 40% Working Interest (WI) in the block and Tullow Oil, Operator, holds a 60% WI. As previously announced Total Petroleum SA ("Total") has an option to acquire a 25% WI from Eco subject to payment of an additional US$ 12.5 million to the Company. The 3D seismic survey shot on the block in September 2017 is currently being finalized and the final data is expected to be sent to Total this month. Total will have up to 120 days following receipt of the data to exercise the option.
Colin Kinley, Co-Founder and Chief Operating Officer of Eco Atlantic, commented:
"Today's CPR confirms the high prospectivity of our Orinduik Block. We are delighted by the identification of at least ten exploration leads with close to 3 Billion barrels (BOE) of recoverable oil potential, confirmed by Gustavson.
"We are very pleased with the current interpretation work that has been completed at Tullow, Gustavson and within Eco and have a great deal of confidence in our joint efforts to date. The additional discoveries on Exxon's Stabroek Block, including the most recent Hammerhead-1 that is on our 3D survey, enables us to see the formations ramp up onto Orinduik. These have greatly helped us to further understand the play. Ten key leads have been identified on Orinduik to date. The partners will carefully consider in the coming months the prioritization of the leads for drilling as we continue work on the drilling engineering and the environmental permitting.
"We have identified the potential for close to 2.5 Billion barrels of recoverable oil and 2.45 TCF of associated gas. These are very meaningful numbers for all the partners and most importantly the people of Guyana.
"Three of the targets we have identified have estimated Probability of Success calculated at 22.4% at this stage This risking is extremely good for any company on a single lead, let alone three. As noted in the previous announcement, we continue to derisk the play and are approaching this with a conservative and focused approach. As our partner Tullow announced last week, we are planning to drill our first well early Q3 2019 and we are in the process of permitting and engineering in parallel with continuing geophysical and geological assessments."