Eco (Atlantic) Oil and Gas Ltd. (AIM: ECO, TSX-V: EOG) , along with its partners in the Orinduik Block, offshore Guyana, Total E&P Activités Pétrolières (“Total”) and Tullow Guyana B.V. (“Tullow”) (Operator) (the “Partners”), is pleased to announce it has contracted a rig, the Stena Forth, a sixth-generation drillship from Stena Carron Drilling Limited Guyana Branch (“Stena”), to drill the Jethro-Lobe prospect on the Orinduik Block offshore Guyana. The Stena Forth is a harsh environment, dynamically positioned Class 3 drillship, capable of operating in up to 10,000 feet of water to a maximum drill depth of 35,000 feet. The Stena Forth, which is currently drilling off West Africa, is fully crewed and is operating.
Eco Atlantic confirms that the contract with Stena secures the rig for transport at the end of May, targeting a June 2019 spud date. Further, the agreement also defines a window for a second well on the Orinduik Block, which would be drilled after the Jethro-Lobe well has been drilled. Long lead items, including the well heads and casings for two wells, have been secured and ordered. The Orinduik partners are currently reviewing plans for a second well and anticipate formalizing those plans in the coming week.
The Stena Forth was selected by the Partners for its best overall economics and technical capacity, following an extensive review of alternatives. There are significant benefits in utilizing this drillship, as it is operating to the partnership’s standards, already being mobilized in a similar drilling environment with an experienced crew, and the Operator has a good understanding of the operating requirements.
The Partners have also approved the majority of the rig servicing contracts to ensure smooth and timely operations with the Stena Forth. Wellheads have been ordered from DrillQuip, and support ship and infrastructure agreements are now underway.
Colin Kinley, Chief Operating Officer for Eco Atlantic stated:
“Eco is pleased to have secured the Stena Forth Drillship for this initial drill programme on Orinduik. This state-of-the-art Class 3 Rig has overall capacity ratings at close to double our operating requirements. The rig is operating, which is a great advantage to the partners. The partners selected the 250 million barrel Jethro-Lobe Tertiary prospect in December, which is only a few kilometers away and up dip from multiple Exxon discoveries in the region and in the same proven resource intervals. While the Jethro-Lobe is a Tertiary target, which we believe is similar to the Exxon Hammerhead discovery that appears to extend onto Orinduik, we will also drill down to test the Cretaceous section below Jethro.”