Page 10 - LatAmOil Week 26 2021

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“If the JHI Warrant is exercised in full, Eco will year, it added.
hold an interest, ceteris paribus, of 10% in JHI Keith Hill, the non-executive director of Eco
on a fully diluted basis.” it added. Atlantic and the president and CEO of Africa Oil
The deal will also see Keith Hill, a member of Corp., commented: “We are very pleased to have
its own board of directors, “join the JHI Board Eco team up with the two most knowledgeable
as Eco’s nominee with immediate effect,” the operating partners in the basin and believe the
company said. Canje block has the potential to hold resources
Eco Atlantic said it intended to fund the pur- comparable to the world-class Stabroek block,
chase of the JHI stake with a combination of cash which is undoubtedly the most successful explo-
and the anticipated proceeds of a private share ration campaign in recent history. Combining
placement to Africa Oil Corp. (Canada) and this with the holdings in the Orinduik block,
Charlestown Energy, a US-based private equity Eco is well positioned to be part of the historic
firm. (The placement is expected to generate oil development in offshore Guyana.”
CAD6.1mn, or about $4.95mn.) This approach Equity in the Canje project is split between
will ensure that the company is able to cover its ExxonMobil, with 35%; TotalEnergies, with
share of costs at Orinduik, it commented. 35%; JHI Associates, with 17.5%; and Mid
The company went on to say that the pur- Atlantic Oil & Gas, with 12.5%. Both ExxonMo-
chase would provide it with “immediate expo- bil and TotalEnergies are participating in several
sure to a current active drilling programme in other offshore projects in the Guyana-Suriname
the Canje block offshore Guyana,” as the inves- basin. The former is leading development efforts
tors in this licence area are slated to drill a total at Stabroek, which is believed to contain more
of two wells this year. Both targets are expected than 9bn barrels of oil equivalent (boe), while
to be extensions of the oil reserves discovered by the latter is the operator of Block 58 offshore
ExxonMobil (US) and its partners at the neigh- Suriname, which may hold 6.5bn boe. ™
bouring Stabroek block, it noted.
The first of these two wells, Jabillo-1, is
already being sunk by the Stena Carron drillship,
and results are likely to be available next month,
Eco Atlantic reported. The second, Sapote-1,
will be sunk by the Stena DrillMAX ship in the
third quarter of the year, it said. (It also pointed
out that JHI would be carried on the costs of
drilling Jabillo-1 and would be similarly carried
on the costs of drilling an appraisal well, in the
event that a discovery is made at that site.)
These efforts will “increase Eco Atlantic’s
presence in the Guyana-Suriname basin to
include a three-well drilling programme” in
2021, assuming that shareholders in the Orin-
duik block agree to drill an exploration well this ExxonMobil will drill two wells at Canje this year (Image: Westmount Energy)

BRAZIL
ANP gives Enauta green light to

claim 100% of Atlanta production

BRAZILIAN independent Enauta Participações concession agreement for the block within the
revealed last week that it had secured govern- next few days. This will serve to “[conclude] the
ment approval for the final step in its acquisi- transfer of 50% of the rights and obligations for
tion of BS-4, an offshore block within the Santos the exploration, development and production of
basin that contains the Atlanta oilfield. oil and natural gas in the field,” it noted.
In a statement, Enauta explained that the The amendment to the concession agree-
National Agency of Petroleum, Natural Gas ment allows Enauta to include 100% of produc-
and Biofuels (ANP) had approved the corpo- tion from Atlanta in its financial statement, up
rate guarantee arrangement that will serve as its from the current level of 50%. The field is cur-
financial guarantee instrument for the decom- rently yielding around 18,000 barrels per day,
missioning of the Atlanta field. It said that it an all-time high, and output levels are expected
expected ANP to sign the amendment to the to average around 14,000 bpd in 2021, it added.

P10 www. NEWSBASE .com Week 26 01•July•2021