From Guyana today, on ExxonMobil Corporation ("Exxon")'s Stabroek Block, Exxon and Hess Corporation have announced a new oil discovery of 60 metres (197 feet) of net pay of high-quality, oil-bearing sandstone reservoir in the Hammerhead-1 well. Exxon's Hammerhead-1 oil discovery is located approximately 7km from Eco's Orinduik licence boundary, where Eco (40%) and Tullow (60%, Operator) are partners (the "Partners"). This well has very positive implications for Eco and Tullow's adjacent acreage.
The Hammerhead-1 was drilled to a Total Depth of 4,225 metres and discovered material quantities of oil in turbidite channel systems. The Orinduik Block partnership has extensively studied 2D Geophysics throughout the area including out onto the Stabroek block and has completed a 2,550 km2 3D Survey last year. This 3D Survey includes the Hammerhead-1 well location and shows that these channel systems do extend up dip onto the Orinduik license. For the past eight months, the Tullow and Eco teams have been coordinating a detailed interpretation of the 3D seismic data, and this phase of the work is now nearing completion and progressing to target selection. Seeing and understanding the play, and today's Exxon discovery, is a major milestone for the Company.
The Partners agree that the Hammerhead-1 discovery has now materially de-risked one of the many similar channel systems in our Orinduik Block, positively mitigating both reservoir and migration principal risks. The Partners confirm that this area has of today been de-risked, and will shortly be in a position to pick the well location for our first well on this licence. We remain on track for drilling mid 2019.
Colin Kinley, Chief Operating Officer and Director of Eco Atlantic commented:
"We have carefully been analysing the channel systems and fan complexes on our Orinduik block for the past year and each successful well drilled by Exxon next door lowers our risks here. We have been painstakingly careful and meticulous in our processing quality control and with our interpretation and have shared efforts between our team of experts at Eco, Tullow and Gustavson and now with Total as they consider the exercise of their option. We all are confident in our understanding of these systems and this discovery immediately off board of our eastern border confirms our analysis. We see a number of significant resource opportunities on Orinduik and will be releasing a CPR (NI51-101 Compliant) on what we see as system potential in the near term.
"As the Hammerhead - 1 oil discovery is in very close proximity to the Orinduik Block boundary, the Tullow and Eco teams will now continue to carefully review today's findings so as to better understand its technical and commercial implications"