Tullow Makes Second Discovery Offshore Guyana

Monday, September 16, 2019

Tullow Oil announced it has made a second oil discovery on the Orinduik block, opening a new Upper Tertiary oil play in the Guyana offshore basin.

The Joe-1 exploration well was drilled by the Stena Forth drillship to a total depth of 2,175 meters in 780 meters water depth. Evaluation of logging and sampling data has confirmed that Joe-1 has encountered 14 meters of net oil pay in high-quality oil bearing sandstone reservoirs of Upper Tertiary age. Joe is the first oil discovery to be made in the Upper Tertiary and de-risks the petroleum system in the west of the Orinduik block, where a significant number of Tertiary and Cretaceous age prospects have been identified, Tullow said.

Tullow and its partners will now evaluate data from the Joe-1 discovery alongside data from the Jethro-1 discovery announced in August 2019 and await the outcome of the Carapa well to determine the optimal follow-on exploration and appraisal program, the company said.

Tullow Guyana B.V. is the operator of the Orinduik block with a 60% stake. Total E&P Guyana B.V. holds 25% with the remaining 15% being held by Eco (Atlantic) Guyana Inc. On completion of operations, the Stena Forth drill ship will depart Guyana and return to Ghana.

Angus McCoss, Exploration Director, said, “I am very pleased that we have made back-to-back discoveries in Guyana and successfully opened a new, shallower play in the Upper Tertiary age of the Guyana basin with our second well. The Joe-1 discovery and its surrounding prospects represent another area of significant potential in the Orinduik block and we are greatly looking forward to the next phase of the program as we continue to unlock the multi-billion barrel potential of this acreage.”

Colin Kinley, COO and Co-Founder of Eco Atlantic, said, "The Joe-1 discovery has now opened up an additional play on the Orinduik block that further defines the full potential for Eco and our partners in Guyana. Our initial interpretation, prior to drilling, defined over a dozen potential resource targets throughout the entire hydrocarbon section. We set a strategy to first focus on these shallower Tertiary plays as they have a huge positive effect on overall economics and allow a speedy path to production. Fast, low risk drilling to thick, clean, high porosity oil-bearing sands has decreased the drilling costs and greatly de-risks the development. This new discovery in the Upper Tertiary has opened a new play, the first Upper Tertiary discovery in Guyana, throughout our block, just as the Jethro-1 discovery did in the Lower Tertiary section. It has greatly increased our chance of success on our upcoming drilling targets and significantly de-risks other resource not previously considered in our interpretation."

Gil Holzman, CEO and Co-Founder of Eco Atlantic, said, "Yet another oil discovery for Eco in Guyana, and we are delighted to have been successful on both of our first two wells. We share this success with the people of Guyana and our great partners at Tullow and Total. With Jethro and Joe as two proven oil discoveries on our block, in two separate horizons, and with multiple drilling targets in front of us, we are in a great place. We are well funded and budgeted to drill more prospects, as we continue to develop a world class asset for Guyana and for our shareholders. The Joe-1 discovery, only a month after the Jethro-1 discovery, is very material for us as it has proven that our theory of shallow low-cost plays exists in Guyana, as we are up-dip from the huge Exxon fields at Liza and Turbot areas, with good quality sands and oil that is clearly present on our block. Extrapolating the overall extent of the play, the quality and accuracy of our interpretation and the significant upside as defined in our CPR, we now have a clear path to making further discoveries, and additional shareholders value creation."

Categories: Drilling Activity Oil South America

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