Eco Atlantic Oil & Gas secures rig for Guyana exploration well

Eco Atlantic Oil & Gas on Wednesday contracted a rig, the Stena Forth, to drill an exploration well at the Jethro-Lobe prospect on the Orinduik Block offshore Guyana.

The rig, which is a sixth-generation drillship from Stena Carron Drilling Limited Guyana Branch, was selected by Eco and its partners in the Orinduik Block, Total E&P Activités Pétrolières and Tullow Guyana, for the end of May in order to target a June spud date.

Colin Kinley, chief operating officer for Eco Atlantic, said: "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 harsh environment drillship, which is capable of operating in up to 10,000 feet of water to a maximum drill depth of 35,000 feet, is fully crewed and currently drilling off West Africa.

The AIM traded company said there are "significant" benefits in utilizing this drillship, as it currently operates to the partnership's standards, is mobilized in a similar drilling environment with an experienced crew, and the operator has a good understanding of the operating requirements.

"The partners selected the 250m 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," said Kinley.

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, with the partners are currently reviewing plans for a second well and anticipating the formalizing of these plans in the coming weeks.

Eco Atlantic's shares were up 1.49% at 68.25p at 1640 GMT.