The stake in the Orinduik Block located in the Suriname Guyana basin will be purchased from Eco Atlantic (Guyana), a subsidiary of Eco (Atlantic) Oil & Gas.
Eco revealed that the option exercise was received by it prior to the delivery of the final 3D seismic data due to be given to Total, which would have activated a 120-day exercise window for the option.
After completion of the transaction, Eco Guyana will have a reduced stake of 15% with Total having 25% stake and Tullow Oil to continue to be the operator of the Orinduik Block with 60% stake.
Eco CEO Gil Holzman said: “The entrance of Total into the Orinduik Block provides further endorsement of the prospectivity of this License. With Tullow as Operator and the technical contribution that both Total and Eco now bring to the project, we look forward to working with these two world class players in further progressing the exciting exploration of the Orinduik Block.
“This deal also further validates Eco’s long-term strategy, to identify highly prospective assets in frontier basins, with stable governments with favourable Petroleum Agreement terms and world class partners.”
As per the terms of the deal, Total will pay an option exercise fee of $12.5m to Eco after receipt of relevant approvals.
Eco expects the proceeds to help it meet its share of the costs needed to drill two or more wells on the Orinduik Block and also in recovering the amount spent on the completed expanded 3D seismic survey.
Recently, the company through a technical report on the Orinduik Block said that the offshore Guyanese block contained gross P50 of 2,913.3MMBOE and Net (40%) 1,165.3MMBOE, identified from a total of 10 leads.
Eco chief operating officer Colin Kinley said: “Total entering the blocks four months earlier than anticipated is welcomed, as they add significant technical horsepower to the interpretation and now bring them into the planning for drilling. Tullow announced last week drilling is anticipated early Q3 2019.”
