Eco (Atlantic) Oil & Gas Ltd. has received an updated independent NI-51-101 Resource Report, detailing the gross and net unrisked prospective resources for its’ Cooper, Guy and Sharon Blocks offshore Namibia. The report includes a gross best estimate of 4.5 Billion Barrels of prospective oil.
In addition, Eco Atlantic, as Operator of the Cooper Block, is contracting RBS - a locally owned specialized consulting firm in Windhoek, Namibia, to assist in filing all the necessary permits and documentation during 2017, in order to get permits to drill offshore Namibia on the Cooper Block in the Walvis Basin.
The Resource Report was prepared by Gustavson Associates LLC of Boulder, Colorado. Gustavson conducted an assessment of the gross prospective resource as of October 31, 2016. The data provided includes acquired 2D and the Blocks' 3D programs seismic data, as well as reports from previous wells that were drilled in the vicinity of the Blocks. Based on probabilistic estimates, the Resource Report confirms a best estimate of gross unrisked prospective oil resources for Cooper, Guy and Sharon Blocks in Namibia of 4,546 Million Barrels of Oil (MMBBls), and net unrisked prospective oil resources to Eco Atlantic of 2,362 MMBBls.
Eco Atlantic has also commenced the process to obtain consents, permits and authorization certifications for predrilling, drilling and post drilling environmental support services. The drilling permits to be filed for Cooper License have an expected completion period of approximately eight months. Partners on the Cooper Block including Eco Atlantic, Tullow Oil, AziNam and NAMCOR have supported the engagement of the environmental consulting firm and the partners are continuing their refined interpretation of the recent 3D survey completed on the Block. An exact drilling location is not yet defined, however the parties concur that permits should be in place for second half of 2017.
Colin Kinley, Chief Operating Officer, commented, “Eco Atlantic continues to progress in Namibia - we have been consistent in our exploration efforts, our research and our operations seeking to prove out the region. We have purposely partnered with Tullow’s highly experienced turbidite specialists and have had access to the vast geophysical expertise behind AziNam. Both teams have helped us derisk and have added to our knowledge base. As we narrow down our path towards drilling, our initial evaluation early days has been significantly refined. We have analyzed and corrected our error, including those of risking, tightened up our parameters of defining reservoir and seal, and now have a much better understanding of the source rock itself. Our assumptions made and lessons learned have helped us to define a much greater level of maturity in the estimates applied and this updated Resource Report defines that, and has given us the confidence to make the next steps towards drilling.”
Kinley added, “We have not yet included our Orinduik Block in Guyana in this report. Together with our partner, Tullow Oil, who is Operator on this block, we have nearly completed our 2D analysis of all the existing data and we benefit from prior work completed by Tullow as well. Our 51-101 report does include an update on our Orinduik Block and confirms Tullow's two of our leads on the block potentially in the Mean 900 Million Barrel range. We expect to refine and clarify theses leads, in the same formation of ExxonMobil’s Liza discovery, over the next year as we plan our 3D survey over the block and complete its interpretation. We hold a great deal of optimism in Guyana. Drilling and water depth over these leads coupled with scale and economics make a compelling case for the Company.”
The Blocks detailed in the Resource Report consists of the Cooper Block (Block 2012A) PEL 30, Guy Block (east half of Blocks 2111B & 2211A) PEL 34, and the Sharon Block (west half of Blocks 2213 A & B) PEL 33.
The Cooper Block License covers an area of approximately 5,000 square kilometers (1,235,000 acres). ECO is designated as the Operator. The Cooper Block is located in an area where the water depth ranges from less than 100 meters to over 500 meters. All of the Cooper lead areas are within the 200 to 500 meter water depth range. Eco Atlantic is carried throughout the drilling of the first exploration well and the carry is subject to Tullow electing to proceed into the Second Exploration Renewal Period, and to the well cap amounts to $53m.
The Sharon Block License covers an area of approximately 5,000 square kilometers (1,235,000 acres). ECO holds a 60% WI and is designated as the Operator. The water depth at the Sharon Block ranges from 100 meters to 500 meters. Eco Atlantic will be carried for 20% of their share of the 3D seismic acquisition costs.
The Guy Block License covers an area of approximately 5,000 square kilometers (1,235,000 acres). Eco Atlantic holds a 50% WI and AziNam is the Operator. The water depth ranges from 1,500 to 3,000 meters. Eco Atlantic was being carried through the 3D acquisition and interpretation costs.
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