Gil Holzman, Eco Atlantic Oil and Gas Limited’s (LON:ECO) chief executive explains why he has topped up his holding in the company and the next steps on the Orinduik block offshore Guyana.
Shares in Eco dropped more than 50% when operator Tullow revealed that the oil discovered by the Jethro and Joe wells earlier this year was heavier than expected.
This was massively disproportionate, says Holzman, especially as demand for the heavy oil found in the tertiary formation is expected to rise as refineries on the east coast of the Americas look for new sources.
Orinduik holds an estimated 1bn of oil in the tertiary layer, but there are also potentially 3bn barrels in the cretaceous layer which is where all the discoveries of light oil so far made off the coast of Guyana have been located.
Holzman says it will sit down with Tullow early in the New Year to plan for the next drilling programme and is funded for three or possibly four explorations wells.