Eco releases updated reserve figures
South America and Africa-focused upstream firm Eco Oil & Gas released a new competent person's resources (CPR) report on March 21 for its assets off the coasts of Guyana, Namibia and South Africa.
The CPR concludes Eco has 7.4 trillion ft3 of unrisked prospective gas resources on a best estimate basis. Best-estimate prospective resources are now assessed at 3.6 trillion ft3 gross at Orinduik in Guyana. As Eco has a 15% interest in the project, this nets the company 544bn ft3. The last CPR, published in 2019, pegged its net associated gas resource at 426.4bn ft3.
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Tullow Oil has a 60% operated stake in Orinduik, while TOQAP Guyana has the remaining 25%. Eco says 22 prospects have been identified, and that most have at least a 30% chance of success.
The committed work programme for Orinduik comprises 1,000 km2 of 3D seismic to follow 2,500 km2 acquired in 2017. One exploration well is expected during the first three-year renewal period, and will be followed by a further probe in the second period.
Away from Guyana, Eco estimates reserves of 73bn ft3 and 1.4 trillion ft3, respectively, for its "lower risk" South African targets at the 2B and 3B/4B licences. Its net shares of these resources are 37bn ft3 and 272bn ft3 respectively.
Eco, listed on stock exchanges in London and Toronto, is pursuing another lower risk gas play at Namibia's Cooper. The best case scenarios for Cooper is 240bn ft3 of gross best estimate gas resources, netting Eco 204bn ft3.
In addition, Cooper hosts a "higher risk" play with potential to yield 422bn ft3 in gas reserves net to Eco. A further two high risk Namibian upstream assets are located at Guy (4.1 trillion ft3 net to Eco) and Sharon (1.9 trillion ft3 net to Eco).
Eco's foothold in South African and Namibian upstream strengthened in January 2022, when it agreed to acquire a group of assets including 2B and 3/4B in South Africa through the takeover of Azinam Group.
"With our current strategy for increasing our stakeholder asset base, we have focused solely on strategic acquisitions that can add material and near-term growth and catalysts for the company," Colin Kinley, co-founder and COO of Eco Atlantic, said. "The addition of the Azinam assets in Namibia and South Africa have quickly added prospective resources to our portfolio."