September 26th, 2017
TORONTO – Total has secured an option agreement to acquire a 25% interest from Eco (Atlantic) Oil & Gas in the Orinduik block offshore Guyana.
Currently Eco Guyana has a 40% share of the block, with operator Tullow holding the remaining 60%.
The concession offsets a line of discovery wells operated by ExxonMobil in its Stabroek block in the Guyana-Suriname basin, with combined estimated resources of 2.25-2.75 Bbbl of recoverable oil.
Total will make an immediate payment of $1 million for the option to farm in to the block, at a total cost of $13.5 million. It must exercise this option within 120 days of the completion of processing of recently acquired 3D seismic over Orinduik.
According to Eco, exploratory wells offshore Guyana cost around $35 million to drill, so if the transaction goes ahead, its share of future costs will be around $5.25 million per well.
The partners are considering drilling at least two wells on the block.