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

[douginil]

Eco (Atlantic Oil & Gas)

Eco has announced the arrival of the Island Innovator Semi-Submersible Drilling Rig on Block 2B and the commencement of operations of the Gazania-1 Exploration Well.

October 4, 2022

[[ Thanks to Malcy' blog
https://www.malcysblog.com/2022/10/oil-price-union-jack-eco-atlantic/
]]



Eco holds a 50% Working Interest in Block 2B and is Operator of the block. The drilling location is located 25km offshore the Northern Cape in Orange Basin South Africa in approximately 150 meters of water. The Gazania-1 Exploration Well is being drilled to a depth of approximately 2,800 meters through a multizone pay section. The well is being drilled up dip of the AJ-1 Discovery Well on the block, which proved approximately 50 million barrels of contingent resources.

The Gazania-1 Prospect is targeting over 300 million barrels of light oil. Pending discovery in the vertical section the JV partners have the option to directionally drill a second sidetrack well from the main well bore. Both the vertical well and the sidetrack optional well will be logged and then plugged back to surface, the well will be sealed, plugged and the casing cut off below surface. No equipment will remain on the sea floor.

The JV partnership in respect of Block 2B comprises Eco Atlantic (50% WI and Operator), Africa Energy Corp (27.5% WI), Panoro 2B Limited, a subsidiary of Panoro Energy ASA (12.5% WI), and Crown Energy AB (10% WI).

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

“Drilling Gazania-1 offers a significant opportunity to South Africa to open up the Orange Basin. 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. The Discovery at AJ-1 is extremely helpful in creating the opportunity on the Gazania-1 well that we are confident that the decades of science will prove out.

“This well is being drilled to define the opportunity and the initial path in the Basin. We are drilling this strictly as an Exploration well. Once we have defined the resources here, South Africa and the JV partners will make its choices and we will determine the next stage of development. 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.

“We are entering an exciting and busy period of drilling and work programmes and we look forward to updating the market, our partners and all stakeholders in the coming weeks on our progress and the Gazania-1 exploration well results.”

This represents the culmination of Eco’s hard work and preparation in Southern Africa. I am lucky to be here on the ground in a region that is as excited as I’ve ever seen some of whom I met at a reception last night.

At an Eco hosted industry event yesterday I saw a number of the key people in the fast-moving hydrocarbon landscape, a tribute to them was that anyone who is anyone around here turned up. The South African Government is as keen as could be to support those companies exploring in the area and here and in Namibia companies from Eco through Africa Oil and of course the likes of Total, Shell and Exxon were represented as well as latest joiner in Chevron.

Chevron finally confirmed the secret that even made yesterday’s blog by announcing that it had acquired block 2813B in the hydrocarbons rich Orange Basin offshore Namibia adding to the excitement in this part of the world.

I was lucky to be given an exclusive interview with Gil Holzman, CEO of Eco Atlantic this morning after the announcement of the Gazania well spud and clearly he is very excited, as he should be as the well is targeting some 300m barrels of oil of which they have 50%.

Success here would indeed be a company maker, I don’t need to do the maths for you but you just need to know that for a straight up exploration well this has some significant appeal, especially to the hydrocarbon short countries down here where upstream projects have been few and far between but which recently have had kicked in. This well is in shallow water and close to the shore, any discovery here would be able to be brought onstream very quickly and be the first upstream project in Southern Africa for some time.

Finally, the well is near an existing, modest discovery, the AJ-1 Discovery Well on the block, which proved approximately 50 million barrels of contingent resources, another find here would justify all the hard work and faith exhibited by such leading industry players.

As I said this is a game changing well which shareholders will receive a magnificent reward should it come in, what is for certain is that with other prospects such as with Africa Oil there are many other plays for Eco and its partners in this vibrant, excited part of the world.

So, be excited, think of 50% of 300m bbls and compare it with the current market cap of £150m, if this well comes in that will be dwarfed.