Eco Atlantic riding high after Tullow discovery at Carapa-1

Eco Atlantic Oil & Gas updated the market on Friday, following a recent announcement from Tullow Oil, Repsol and Total over the cretaceous age light oil discovery made at the Carapa-1 well on the Kanuku block, directly in board of the Orinduik block, offshore Guyana.

The AIM-traded firm noted that the preliminary results of drilling, wireline logging, pressure testing and sampling of reservoir fluid indicated the discovery of oil in Upper Cretaceous age sandstone reservoirs.

Testing indicated that the oil was 27 degrees API, with a sulphur content of less than 1%.

“The Carapa discovery is very important to us technically and confirms our thinking on prospectivity on our Orinduik block,” said Eco Atlantic’s chief operating officer Colin Kinley.

“The existence of a good oil grade unaffected by sulphur in board of us is excellent news.

“We have a proven source kitchen to the north, with ExxonMobil and partners having defined and now producing 32 API at the Liza field to the north of us, and now a 27 API oil discovery on Carapa to the south of us.”

Kinley said the company was continuing to gain a “good understanding” of the transportation and pooling systems, adding that Eco Atlantic could see the reservoirs clearly in the cretaceous.

He said that as more wells were drilled, it was “becoming clearer” to understand and define new drilling locations.

“We see very significant thick pay opportunities in the cretaceous section on Orinduik and we are currently defining our upcoming drilling plans, which we hope to have confirmed in the next few weeks.

“Eco is currently preparing an updated CPR under TSX and AIM guidelines, which will incorporate the recent discoveries in the Tertiary Section on Orinduik, ExxonMobil's additional regional discoveries in 2019 and some of the read through we see by the derisking of the cretaceous section, which is estimated to contain close to 3 Billion Barrels of oil on the Orinduik Block, that the Carapa discovery has helped define.”

Kinley added that 2020 would be a “significant year” for Eco Atlantic, with the discovery at Carapa “exactly” what the board was looking for.

“We now have drilling prospects that are significantly brightened and we will provide further updates regarding the CPR, analysis of our discoveries to date and upcoming drilling plans soon.”

At 0848 GMT, shares in Eco Atlantic Oil & Gas were up 8.45% at 56.4p.