Sign up USA
Proactive Investors - Run By Investors For Investors

Tullow Oil’s exploration plans in Guyana bode well for partner Eco Atlantic

VSA Capital's target price of 25p suggests some 50% upside to the current price of 17.3p.
oil drilling operations
Guyana could be a key exploration frontier for Tullow

Exploration could be a key driver for Eco Atlantic Oil & Gas Ltd's (LON:ECO, CVE:EOG) partner Tullow Oil PLC (LSE:TLW) going forward, according to VSA Capital analyst Edward Vaughan, who repeated a ‘buy’ recommendation for the AIM-quoted firm.

Vaughan’s target price of 25p suggests some 50% upside to the current price of 17.3p.

Tullow is kicking off a South American exploration campaign with a high-impact well in Suriname, and seismic programmes are already underway in Guyana where Eco has a 40% working interest in the large Orinduik area.

READ: Exploration can be a key driver for Tullow Oil – analyst

Earlier this year, Tullow and Eco more than doubled the size of the Orinduik 3D seismic survey up to 2,550 square kilometres.

The Orinduik Block is located up dip and just a few kilometres from Exxon's massive Liza and Payara discoveries, which could come online by 2020 - to yield some 120,000 barrels of oil per day in the initial production phase.

Tullow could potentially start Guyana drilling in the Kanuku licence area (where it is partnered with Repsol) as soon as the 2018/19 exploration season.

READ: Eco Atlantic Oil & Gas boosted as Exxon green-lights Liza oil field development

Ian Cloke, Tullow vice president for new ventures, in this morning’s statement said the company is seeking low-cost, light oil in geologies and geographies that it knows well in Africa and South America.

Specifically, he highlighted that the company is in “an excellent position as we decide what and where to drill in 2018 and beyond, with substantial prospects in Guyana, Suriname, Mauritania and Namibia all under evaluation."

View full ECO profile View Profile

Eco Atlantic Oil & Gas Ltd Timeline

Related Articles

picture of oil field
June 26 2017
“Ntorya-3 is ready to go but want to make sure, we maximise as many targets as we possibly can.”
oil and gas operations
Tue
Falcon is sitting on a major shale discovery in the Beetaloo basin, but, it is waiting for the Northern Territory to green-light fracking - with a decision expected next year.
oil and gas operations
August 22 2017
The area being targeted by Rose is believed to have very significant potential – Paradox could contain as much as 1.1bn barrels of oil and 2.2tn cubic feet of gas.

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You understand that the Company receives either monetary or securities compensation for our services. We stand to benefit from any volume this write-up may generate.

You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Copyright © Proactiveinvestors.com, 2017. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use