Eco (Atlantic) Oil and Gas Ltd. Updated CPR on Orinduik Block, Offshore Guyana (0979T)

TIDMECO

RNS Number : 0979T

Eco (Atlantic) Oil and Gas Ltd.

18 March 2019

18 March 2019

ECO (ATLANTIC) OIL & GAS LTD.

("Eco", "Eco Atlantic", "Company" or, together with its subsidiaries, the "Group")

Updated NI 51-101 Compliant Competent Person's Report (CPR) on Orinduik Block, Offshore Guyana

Increase in Gross Prospective Resources P50 (Best) to 3,981 MMBOE (from previous 2,913 MMBOE)

Eco (Atlantic) Oil & Gas Ltd. (AIM: ECO, TSX-V: EOG), the oil and gas exploration company with licences in highly prospective regions in Guyana and Namibia, is delighted to announce that Gustavson Associates LLC ("Gustavson") of Boulder Colorado has completed and delivered an updated NI 51-101 compliant Competent Persons Report ("CPR") on the Orinduik Block offshore Guyana ("Orinduik Block"). This report is the second on Eco Atlantic's Orinduik Block and follows the completion of the 3D processing and an additional six months of interpretation work. It supplements and updates the interpretation of the previous CPR announced on 11 September 2018.

Following the completion of the processing of the 2,550 km(2) 3D seismic program and the reported regional Tertiary aged discoveries, including Exxon's Hammerhead discovery, the company and its partners (Tullow - 60% Operator, Total - 25%, Eco - 15%) have completed a further extensive evaluation and risking exercise on the leads and targets on the Orinduik Block following review and analysis of this additional information. Gustavson has independently updated the previously announced P50 Best estimate of the Gross Unrisked Prospective Resources within the Orinduik Block.

The updated CPR estimates an increase in Gross Unrisked Prospective Resources P50 (Best) to 3,981.9 MMBOE on the Block, implying Net (15%) 597.3 MMBOE to Eco, identified across a total of 15 Leads on the Orinduik Block.(.)

Gross (to Block) and Net (to Eco) Barrels of Oil Equivalent Unrisked Prospective Resources

 
                Gross Prospective Oil Equivalent             Net Prospective Oil Equivalent 
                       Resources, MMBOE(6)                         Resources, MMBOE(6) 
           ------------------------------------------  ------------------------------------------ 
Orinduik   Low Estimate  Best Estimate  High Estimate  Low Estimate  Best Estimate  High Estimate 
  Block 
---------  ------------  -------------  -------------  ------------  -------------  ------------- 
  TOTAL      2,015.8        3,981.9        7,215.0        302.4          597.3         1,082.3 
=========  ============  =============  =============  ============  =============  ============= 
 

Gross Unrisked Prospective Resource Estimates for Orinduik Block

 
                                                   Prospective Oil Resources,            Prospective Associated 
                  Oil in Place, MMBbl                         MMBbl                        Gas Resources, BCF 
           ----------------------------------  ----------------------------------  ---------------------------------- 
                           Best       High                     Best       High                     Best       High 
           Low Estimate   Estimate   Estimate  Low Estimate   Estimate   Estimate  Low Estimate   Estimate   Estimate 
---------  ------------  ---------  ---------  ------------  ---------  ---------  ------------  ---------  --------- 
Orinduik 
 Block       6,720.2     12,978.3   22,928.7     1,782.3      3,508.1    6,326.9     1,401.2      2,842.6    5,328.9 
=========  ============  =========  =========  ============  =========  =========  ============  =========  ========= 
 

(MMBbl = million barrels of oil; BCF = billion cubic feet)

Eco's 15% Net Unrisked Prospective Resource Estimates for Orinduik Block and Lead Risk Percentage

 
                                                   Prospective Oil              Prospective Associated         Risk 
                Oil in Place, MMBbl                Resources, MMBbl                Gas Resources, BCF 
           ------------------------------  -------------------------------  -------------------------------  --------- 
                                                                                                                POS 
             Low       Best       High        Low       Best       High        Low       Best       High      Range, 
           Estimate   Estimate   Estimate  Estimate    Estimate   Estimate  Estimate    Estimate   Estimate      % 
---------  --------  ---------  ---------  ---------  ---------  ---------  ---------  ---------  ---------  --------- 
Orinduik                                                                                                        16.8 - 
 Block     1,008.0    1,946.7    3,439.3     267.3      526.2      949.0      210.2      426.4      799.3         81.0 
=========  ========  =========  =========  =========  =========  =========  =========  =========  =========  ========= 
 

(MMBbl = million barrels of oil; BCF = billion cubic feet)

A link to the full CPR Report can be viewed online at www.sedar.com and is also available on the Company's website: www.ecooilandgas.com.

Colin Kinley, co-founder and Chief Operating Officer of Eco Atlantic commented:

"Eco is pleased with the progress made in defining the prospectivity on Orinduik. As the regional play continues to develop, and more discoveries have been made, particularly in the Tertiary play, as was proven by Exxon's Hammerhead 1 discovery, this has allowed us to build upon our model. Our first drill target scheduled for June is Jethro, on which Gustavson has firmed up their estimate to contain 214.5 MMBOE (P50) at 43.2% Chance of Success. The partners are in the process of approving a second well and we believe the risking will be in the same range as for Jethro. We hope to confirm drilling plans for well number two in the near future to take advantage of the economics of our rig on the block.

"We are very happy with the interpretation of the Hammerhead-1 discovery up on to Orinduik. Although the volumes are conservative, it has an extremely low risk for drilling (81% Chance of Success) and has confirmed the presence of oil on our block. We understand that this discovery will be offset drilled on the Stabroek block in the near future which will help further define our interpretation of our other leads and targets.

"We have confidence in our and our partners' work to date, as we continue to work with the industry leading teams at Tullow, who is Operator, and Total, who is a fully engaged partner. At this point we are looking to drill strategic lower risk targets. Assuming positive results, we aim to move quickly to production planning and optimum economics for our partnership and the people of Guyana."

Qualified Person's Statement:

Jan Joseph Tomanek, Vice President of Gustavson Associates LLC, has reviewed the technical information contained within this announcement for the purposes of the current Guidance Note for Mining, Oil and Gas Companies issued by the London Stock Exchange. Jan Tomanek is an American Association of Petroleum Geologists Certified Petroleum Geologist and an American Institute of Professional Geologists Certified Professional Geologist and has over 35 years' experience in the oil and gas field.

All Reserves and Resources definitions and estimates detailed in this announcement are based on the 2007 SPE/AAPG/WPC/SPEE Petroleum Resource Management System ("PRMS").

**S**

For more information, please visit www.ecooilandgas.com or contact the following:

 
 Eco Atlantic Oil and Gas                          [phone] 
 Gil Holzman, CEO 
  Colin Kinley, COO 
  Alan Friedman, VP 
 
   Strand Hanson Limited (Financial & Nominated 
   Adviser)                                          [phone] 
 James Harris 
  Rory Murphy 
  James Bellman 
 Stifel Nicolaus Europe Limited (Joint 
  Broker) 
  Callum Stewart 
  Nicholas Rhodes 
  Ashton Clanfield                                 [phone] 
 
   Berenberg (Joint Broker)                          [phone] 
 Matthew Armitt 
  Detlir Elezi 
 
  Pareto Securities Limited (Joint Broker)           [phone] 
 Søren Clausen                                [phone] 
 Davide Finelli                                    [phone] 
  Matilda Mäkitalo                             [phone] 
 
   Blytheweigh (PR)                                  [phone] 
 Tim Blythe 
  Julia Tilley 
  Jane Lenton 
 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014.

Notes to editors

About Eco Atlantic:

Eco Atlantic is a TSX-V and AIM listed Oil & Gas exploration and production Company with interests in Guyana and Namibia where significant oil discoveries have been made.

The Group aims to deliver material value for its stakeholders through oil exploration, appraisal and development activities in stable emerging markets, in partnership with major oil companies, including Tullow, Total and Azinam.

In Guyana, Eco Guyana holds a 15% working interest alongside Total (25%) and Tullow Oil (60%) in the 1,800 km(2) Orinduik Block in the shallow water of the prospective Suriname-Guyana basin. The Orinduik Block is adjacent and updip to the deep-water Liza Field and Snoek, Payara, Pacora, Turbot, Longtail and Hammerhead discoveries, recently made by ExxonMobil and Hess Corporation. The more recent discovery by ExxonMobil and Hess Corporation, Pluma-1, increased the estimate of recoverable resources for the Stabroek Block to more than 5.5 billion barrels of oil equivalent, and the latest discoveries at Tilapia-1 and Haimara-1 will further add to that estimate.

In Namibia, the Company holds interests in four offshore petroleum licences totalling approximately 25,000km(2) with over 2.3 billion barrels of prospective P50 resources in the Walvis and Lüderitz Basins. These four licences, Cooper, Guy, Sharon and Tamar are being developed alongside partners Azinam and NAMCOR. Eco has been granted a drilling permit on its Cooper Block (Operator).

About Gustavson Associates:

Gustavson Associates LLC ("Gustavson") is an international oil, gas, and mining consulting firm consisting of professional geologists, engineers, economists, and appraisers. Gustavson has acted independently in the preparation of this Report. The company and its employees have no direct or indirect ownership in the property appraised or the area of study described. The fee for the CPR and the other services that may be provided is not dependent on the amount of resources estimated.

Gustavson has the relevant and appropriate qualifications, experience and technical knowledge to appraise the assets professionally and independently. Gustavson considers that the scope of the CPR is appropriate and includes and discloses all information required to be included therein and was prepared to a standard expected in accordance with the AIM Rules.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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March 18, 2019 03:01 ET (07:01 GMT)