THE Stena Forth drillship, to be utilized to drill two wells in the Orinduik Block, is now en route to Guyana from West Africa for a June 24, 2019 arrival.
The drillship is expected to spud the Jethro Lobe prospect offshore Guyana on or around June 26, 2019 and the Joe prospect — located nearby — right after.
Companies involved are anticipating a 40 per cent Chance of Success for both prospects being hailed as “potentially transformational wells” while there are plans to drill up to six additional wells on Orinduik across 15 prospects.
This and more were announced on Monday by Eco (Atlantic) Oil & Gas Ltd. which holds a 15 per cent working interest in the Orinduik block and works alongside Total which owns 25 per cent and Tullow Oil, 60 per cent.
“The Stena Forth is being mobilized for Eco and its partners, Tullow Guyana B.V. and Total EP Guyana BV for a committed two well campaign. The first exploration well is to be drilled on the Jethro Lobe prospect, as announced on 5 December 2018. The second well is the Joe prospect, a few kilometres away. The two wells are not contingent and will be drilled immediately one after the other,” a release stated.
The Stena Forth drillship has been operating for Tullow in West Africa on an existing contract and will now transition to Guyana, fully crewed and with experienced personnel.
A smooth transition and with less rig-up and training time is expected.
In a resource study, known as the competent person’s report (CPR), Eco Atlantic said the Orinduik block is estimated to contain a resource of around 2.9 billion barrels of oil and gas equivalent in 10 large prospects.
However, the release added: “Whatever the outcome of the two planned wells, we have enough capital for a multi well-drilling campaign. We know that there are hydrocarbons on the Block, and good quality sands like those on Stabroek, therefore the main risks are the quality of the seal and the presence of a trap. Thanks to our successful US$17 million placement and subscription in April, we have a cash balance today of over US$35 million so we are in the fortunate position of being fully funded to drill up to six additional wells on Orinduik, across the fifteen identified prospects.”
It was explained to the newspaper last year by Tullow Oil’s spokesman, George Cazenove, that after a period of 30-45 days post drilling, the results of the Jethro Lobe prospect should be available.
In the meanwhile, the two wells will test both the Upper and Lower Tertiary aged turbidites, while Jethro will also be drilled down to the Cretaceous section.
Studies show that much of the world’s heavy oil is found in Cretaceous reservoir rocks due to a combination of tectonic, climatic, geological, and biological factors.
Eco (Atlantic) indicated on Monday that the focus is on near-term oil production while the exploration programme has been ordered around “risking, development and deliverability of oil for the people of Guyana and our stakeholders.”
However, Eco Atlantic said that a further announcement will confirm the spud date of the first well.
Speaking on the mobilization, Chief Operating Officer at Eco Atlantic, Colin Kinley, stated that the mobilization of the Stena Forth is the final stage of a long, conservative and quality-controlled process.
“Our team, together with Tullow and Total, have comprehensively interpreted the nearly 3,000 km2 of 3D seismic data we shot over and beyond Orinduik and have selected the first two targets that we feel will allow us to accelerate the Block’s development,” Kinley said.
“With the Stena Forth now mobilizing westwards to Guyana waters, we are on course to drill a pair of potentially transformational wells for the Company, for the Block partners, and for Guyana.”
The Chief Operating Officer further indicated that with 13 discoveries in just three years from ExxonMobil’s adjacent Stabroek Block totaling over 5.5 billion of barrels of oil equivalent, the commitment between Eco Atlantic’s joint venture partners has been recharged.
He stated that the involved partners have since expedited and significantly expanded their work programme far beyond committed requirements.
According to a Production Sharing Agreement (PSA) signed between the Government of Guyana, Tullow Guyana B.V and Eco (Atlantic) Guyana Inc, the country could benefit from as much as 60 per cent in oil profit.
Benefits also include a one per cent royalty once the explorations are successful and the companies start pumping for oil.
The Orinduik Block licence was applied for in March 2014 and was awarded to Eco and Tullow in January 2016 with a first well commitment for 2021/2022.
Meanwhile, the Carapa prospect over in the Kanuku Block offshore Guyana, is expected to be tested on the Kanuku licence in the third quarter of 2019.
In 2018, Tullow increased its equity share in the Kanuku licence from 30 per cent to 37.5 per cent through a farm-in deal with Repsol.