Despite the COVID-19 pandemic, Eco (Atlantic) Oil & Gas Ltd. has stated that it remains is eager to capitalise on the upside potential for the Orinduik Block Offshore Guyana in 2021 and remains fully-funded to do so.
As of June 30, 2020, the Company had cash and cash equivalents of US$ 17.9 million with zero debt. This is commendable in comparison to oil and gas companies such as the world’s largest offshore rig owner, Valaris Plc, which recently declared bankruptcy exacerbated by the pandemic.
“The Company has made significant strides towards advancing its asset portfolio in 2020. Due to the actions taken, Eco remains well capitalised and fully funded for a further drilling campaign in Guyana and additional activity elsewhere,” Gil Holzman, President and Chief Executive Officer (CEO) of Eco Atlantic, commented in a company update today.
As of 30 June 2020, Eco Atlantic had total assets of US$19.2 million, total liabilities of US$ 372,138 and total equity of US$18.8 million. There was a 58% cost reduction this quarter in response to COVID-19 strict cost cutting measures taken as of April 2020. The CEO said that, in Guyana, excellent progress has been made with high grading and multiple highly prospective drilling prospects have been further defined. The Orinduik Joint Venture (JV) partners are Eco Atlantic (15% working interest), Tullow Guyana B.V. (Operator, 60% working interest) and Total E&P Guyana B.V. with (25% working interest).
Holzman said that Eco Atlantic and its JV partners firmly believe in the upside potential of the Block and look forward to recommencing drilling activity next year. The JV partners are further defining the Orinduik geological modeling, previous discoveries, prospects maturation and drilling targets selection. They are also reviewing and incorporating the latest Kanuku Block Carapa-1 light oil discovery. The intention is to provide further definition to the Cretaceous interpretation and target selection for drilling. On 30 June 2020, the Company and its partners approved a budget in the amount of approximately US$5 million through to December 31, 2020 for 3D reprocessing based on new regional results and target selection. The Company’s share of this budget is US$750,000.
