Orinduik resource upgrade for Eco Atlantic offshore Guyana

Published on 20-03-2019 09:19:12
Oils blog: Orinduik resource upgrade for Eco Atlantic offshore Guyana - 20032019 - Feature image

A CPR carried out for Eco Atlantic by Gustavson Associates LLC has increased the gross prospective resources (P50) in its Orinduik Block, offshore Guyana, from 2,913mmboe to 3,981mmboe. The new figure was assessed after taking into account ExxonMobil’s Hammerhead Tertiary discovery, together with the processing and interpretation of 2,550km2 3D seismic acquired in 2017.

The bulk of the increase is due to the addition of five new leads, of which four, Jethro, Jethro Ext, Joe and HH are all targeting the Tertiary.

Jethro will be the first well to be drilled as part of a two well campaign in the block led by operator Tullow Oil and is due to spud in Q2 2019 (The well was included in our ‘Exploration Watch:2019 exploration wells’ report) Eco had previously estimated Jethro to hold P50 resources of 250mmboe and this has been revised by Gustavson to 214.5mmboe. With the success at nearby Hammerhead, the Tertiary leads all carry relatively high chances of success (COS) in the CPR. Jethro, Jethro Ext and Joe all carry a geological COS of 43.2%, with the key risk being a lack of seal. As the HH lead is considered to be the extension of Hammerhead from the neighbouring Stabroek block into Orinduik, it has a very high COS of 81%, although the volume is assessed to be a modest 11mmbbls.

Upper Cretaceous leads Kumaka and Rappu are the largest targets in the portfolio at 667.5mmbbls and 535.6mmbbls respectively. Both are estimated to carry a higher risk than seen in the Tertiary leads, but still reasonably high for a frontier basin. Kumaka relies on a stratigraphic pinch out and has a COS of 22.4%, while Rappu has a COS of 25.5%.

The JV has not yet announced its choice for the second well in the drilling programme. We suggest that the most likely candidate at this stage is the 148.3mmbbl Tertiary prospect Joe, however this would probably be dependent on the outcome of the Jethro well.

Summary of exploration wells in ‘Exploration Watch’ report:

Prospect
Region
Operator
Resource estimate*
Estimated spud 2019
Current status
Winx-1
Alaska
88 Energy
400mmbbl
February
Non moveable hydrocarbons
Presto
Norway
Equinor
160mmboe
February
Drilling
Blackrock
West of Shetland
Siccar Point
200mmbbl
Q2
Spudded 19/3/19
Jethro
Guyana
Tullow Oil
>100mmbbl
May/June
2nd Orinduik prospect
Guyana
Tullow Oil
TBA
After Jethro
Warwick (x2)
West of Shetland
Hurricane Energy
935mmboe
Q2/Q3
Carapa
Guyana
Repsol
>200mmbbl
Q3
Chimera
North Sea
Cairn Energy
154mmboe
Q3
Block 7
Mexico
ENl
200mmboe
Q3
Alom
Mexico
Cairn Energy
140mmboe
Q3
Bitol
Mexico
Cairn Energy
180mmboe
Q3
Velociraptor/Fox
Mongolia
Petro Matad
201/206mmbbl
Q4

Source: Edison Investment Research, *Operator estimate where available
Orinduik JV: Tullow Oil (60% and operator), Total (25%), Eco Atlantic (15%)

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