Eco (Atlantic) Oil and Gas Ltd. (ECAOF)

[pro_s2009]

https://www.upstreamonline.com/exploration/flag-day-exploration-probe-spuds-in-south-africas-orange-basin/2-1-1326674

Flag day: Exploration probe spuds in South Africa's Orange basin

Eco Atlantic's Gazania-1 well is drilling ahead offshore Northern Cape province
4 October 2022 8:34 GMT Updated 4 October 2022 8:34 GMT
By Iain Esau in London

Eco Atlantic has spudded what will be a highly watched exploration well in South Africa’s Orange basin, chasing some 300 million barrels of potential oil resources.

Located in shallow water in Block 2B, the Gazania-1 probe is targeting at least two oil prospects that could house over 300 million barrels of oil in a rift play, close to a legacy oil discovery called A-J1 that was drilled in the late 1980s.

Semi-submersible Island Innovator in now drilling ahead in 150 metres of water, with the well aiming for a total depth of about 2800 metres subsea.

The probe will target two prospects in a syn-rift basin, a geological setting similar to plays in Kenya and Uganda where major oil accumulations were discovered by Africa Energy's technical team when they worked for Tullow Oil.

In the event of success at Gazania-1, the partners have the option to drill a sidetrack to target a third prospect.

Both the Gazania-1 well and its potential sidetrack will be logged and then plugged back to surface, with the well to be sealed and the casing cut off below the seabed. No equipment will remain on the sea floor.

Colin Kinley, co-founder and chief operating officer of Eco Atlantic, said drilling Gazania-1 "offers a significant opportunity to South Africa to open up the Orange basin” which, across the border in Namibia, is home to the TotalEnergies huge Venus discovery and Shell’s major Graff find.

“A number of prior discoveries in the region are changing the understanding of this basin both in South Africa and Namibia where recent multi-billion-barrel discoveries have opened the gate to a new era of economic and resource opportunity,” noted Kinley.

He added that “the discovery at A-J1 is extremely helpful in creating the opportunity on the Gazania-1 well that we are confident that decades of science will prove out.”

Kinley said Eco “appreciates all the support of the South African government, the local industries and local communities in the communication, participation and planning of this well.”

Jan Maier, head of exploration at partner Africa EnergyCorp, said: “The block has significant resource potential in shallow water and contains the A-J1 discovery that flowed light sweet crude oil to surface.

A-J1 is estimated to house about 50 million barrels of contingent resources, according to Eco Atlantic.

“Gazania-1 is a relatively low-risk exploration well that will target two large oil prospects seven kilometres up-dip from A-J1," according to Maier.

Block 2B covers on area of more than 3000 square kilometres and is located about 25 kilometres off South Africa’s Northern Cape province in water depths ranging from 50 to 200 metres.

Soekor, South Africa’s former state oil company, discovered and tested oil on the block in 1988 with the A-J1 borehole, which hit thick reservoir sands between 2985 metres and 3350 metres.

That well flowed 191 barrels per day of 36-degree API oil from a 10-metre sandstone interval at a depth of some 3250 metres.

Eco Atlantic has a 50% stake in Block 2B and is partnered by Africa Energy on 27.5%, with Panoro Energy on 12.5% and Crown Energy with an indirect interest of 10%.