TORONTO, July 22, 2013 /CNW/ - Eco (Atlantic) Oil & Gas Ltd. ("Eco Atlantic" or the "Company") (TSXV: EOG) (NSX: EOG) provides technical interpretation of Murombe-1 well drilled by HRT Participações em Petróleo S.A ("HRT") in the Walvis Basin, offshore Namibia.
HRT announced on Friday July 18, 2013 that the Murombe-1 well, the second offshore well in their exploratory drilling campaign has been concluded and is considered as a dry hole. This well was targeting the Murombe Prospect, located in Petroleum Exploration License 23 in the Walvis Basin. Although the well was dry and presence of poor reservoir in the main target, the results reconfirmed the presence of Aptian source rock in the oil window, which was also encountered during the drilling of the Wingat-1 well.
The Murombe-1 exploration well was drilled to a total depth of 5,729 meters with the objective of penetrating two targets. The primary target, Murombe, a Barremian Age turbidite fan system and a secondary target, the Baobab, a shallower Santonian Age structure were both penetrated. The average porosity was 19% and no reservoir was encountered.
Gil Holzman, Chief Executive Officer of Eco Atlantic commented: "The results of the Murombe-1 well announced by HRT late last week was disappointing for HRT from a commercial perspective, however they provide valuable information on the basin and the geological structures of the region. The well reconfirmed the evidence of source rock which complements that which was established by the Wingat-1 well drilled in May. In that well, samples of high quality light sweet crude were recovered, and a working petroleum system in the Walvis Basin was established."
Earlier this month, Eco Atlantic was granted a one year extensions of its Exploration Phase of the Sharon and Guy licenses, extending the obligation period for both 3D seismic and drilling by a further 12 months into 2016.
"Repsol recently announced the anticipated drilling of its Welwitschia-1 prospect in February 2014, which is contiguous to Eco Atlantic's Cooper Block in the Walvis Basin." Added Holzman, "HRT has also confirmed the imminent drilling of its third exploration well on the Moosehead prospect in the Orange Basin. Our Strategy is to continue with ongoing exploration during the extended term as approved by the Ministry, which comfortably allows the Company sufficient time to work obligations. Our team continues to gather information from ongoing exploration work which is allowing us to further define our prospects and targets. We and the E&P industry are well aware of the statistics of early dry holes drilled in the major fields around the world in order to bring them on line. We are being very conservative in our budgetary moves at this early stage and remain confident in the prospectivity of our offshore Namibia licenses."
About Eco Atlantic
Eco Atlantic is an oil and gas exploration company focused on the new and bourgeoning energy play in Namibia. Through its wholly owned Namibian subsidiary, it holds three offshore petroleum licenses and two onshore CBM and shale licenses issued by the Government of the Republic of Namibia. Offshore in the Walvis Basin, Eco Namibia holds three license blocks covering more than 25,000 square kilometers (6,177,000 acres). Onshore, Eco Namibia holds two license blocks covering 30,000 square kilometers (7,413,000 acres). Eco Namibia, founded in 2008, enjoys a strong local presence, and has a longstanding relationship with the energy and oil and gas sector in Namibia and the region. The terms and conditions of these licenses are regulated by agreements signed by Eco with the Government of the Republic of Namibia in March 2011.
Forward Looking Statements
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Such factors include, without limitation, risks associated with oil and gas production and exploration, marketing and transportation; loss of markets; volatility of commodity prices; currency and interest rate fluctuations; environmental risks; competition; inability to access sufficient capital from internal and external sources; government regulation of petroleum and natural gas matters; environmental risks; unanticipated reclamation expenses; title disputes or claims, termination or amendment of existing contracts; actual results of drilling activities; conclusions of economic evaluations; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the petroleum and natural gas industries and delays in obtaining or failure to obtain any governmental approvals or licenses. . Readers are cautioned that the foregoing list of factors is not exhaustive.
Although Eco Atlantic believes in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because Eco Atlantic can give no assurance that they will prove to be correct. The forward-looking statements contained in this press release are made as of the date hereof and Eco Atlantic undertakes no obligation to update publicly or revise any forward- looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
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SOURCE Eco Oil & Gas (Atlantic) Ltd.