The transaction provides the company with immediate exposure to a current active drilling programme in the block
Eco (Atlantic) Oil & Gas has acquired a stake of up to 10% interest in JHI Associates (JHI) to become a partner in ExxonMobil-operated Canje block, offshore Guyana.
The transaction provides the company with immediate exposure to a current active drilling programme in the block.
The Canje block was awarded to Mid-Atlantic Oil & Gas in 2015. ExxonMobil became the operator of the block in 2016. Later, TotalEnergies farmed into the block in 2018.
Esso Exploration & Production Guyana and Total E&P Guyana hold a stake of 35% each in the block, while the remaining stake is owned by JHI Associates (BVI) and Mid-Atlantic Oil & Gas.
Eco Atlantic co-founder and chief executive officer Gil Holzman said: “After a period of thorough technical analysis of the Canje block, by both our team at Eco and our strategic partners at Africa Oil Corp we are delighted to advise the market on this exciting transaction, and to be back drilling with results expected imminently.
“The carried Jabillo-1 well is underway and is expected to reach target in the coming few weeks, providing our shareholders with high impact near term catalysts.
“I want to thank the teams at Eco, Africa Oil and JHI for their hard work and collaboration over the past months in bringing this deal to execution.”
Eco Atlantic is an oil and gas exploration company with licences in the proven oil province of Guyana and the highly prospective basins of Namibia.
The transaction is expected to increase Eco Atlantic’s presence in the Guyana-Suriname basin to include a three well drilling programme.
The programme includes the first two firm wells on the Canje Block drilling in 2021 and at least one on the Orinduik Block.
The Jabillo-1 well is currently being drilled on the Canje Block utilising the Stena Carron drillship with results expected in July.
The Sapote-1 well is planned to be drilled later this year by the Stena DrillMax in the eastern portion of the Canje Block, which Eco will also have exposure to through its transaction with JHI.
Holzman added: “While we eagerly anticipate resuming drilling activity on our Orinduik block next year, pending partner approvals, and we have made sure to preserve sufficient funding for that, we are very excited that we now have two imminent Guyana wells in our portfolio as well as additional multiple prospects inventory on the Canje Block.
“Since 2014, Eco has strongly focused on the hydrocarbon potential offshore Guyana, and this strategic deal with JHI marks the beginning of a wider presence and potential increased future collaboration in the basin.”