ELA-1 Well Completion

RNS Number : 4191Q

Echo Energy PLC

06 June 2018

 

6 June 2018

Echo Energy plc

("Echo" or the "Company")

ELA-1 Well Completion

Echo Energy plc, the Latin American focused upstream oil and gas company, announces the succesful completion of drilling of the ELA-1 exploration well at the Company's Laguna Los Capones Asset (surrounded by the Fracción C licence area), onshore Argentina. This block is operated by Compañía General de Combustibles S.A. ("CGC"), the Company's Argentinian partner.  The well  reached a total depth of 1,820m in the Upper Jurassic Tobifera formation. Wireline log evaluation has been completed and a final production casing run, prior to suspending the well for possible testing and/or sidetrack.

In the deeper Tobifera volcaniclastic target, the well encountered elevated gas shows of C1 through C4 hydrocarbon indicators across an interval of approximately 40m in addition to some oil staining. This section is evaluated as being a thinly bedded sequence of oil pay intervals, with around 8m of net pay currently interpreted across that section.  As is normal in this basin, the determination of effectiveness of pay from the wireline log analyses is complicated due to the complex mineralogy of the volcanic reservoir, and the current workflow is to determine the potential for testing this section when the test rig is on the licence. If testing proves to be successful the well could be brought into production quickly.

In the shallower primary Springhill target, whilst the well encountered gas shows at the top of the section and 57m of high quality reservoir, the sequence is believed to be effectively water bearing at this location. Given the thickness and quality of the reservoir at this location on the flank of the structure, the Company and CGC will likely consider a potential future sidetrack updip and to the crest of the structure where it is now believed that the Springhill deposition could be continuous.

Following completion of this phase of the operation on the ELA-1, the rig will move directly to the third prospect in the Company's four well exploration progamme, El Molino Sur, located on the Fracción C asset and to the south of the current well location

Fiona MacAulay, Chief Executive Officer of Echo, commented:

"The interpretation of oil in the Tobifera at this location is exciting and suggests the ability of that formation to generate hydrocarbons in situ as is seen in the nearby Laguna Maria field which has been on production since 2016. If testing determines that this section can support commercial flow rates, the well can be quickly brought into production.

Whilst the Springhill reservoir had only a limited interval of gas shows at this location, the extent and quality of the Springhill reservoir on the flanks of the structural high, is likely to indicate that the reservoir may unusually extend across the top of the structure with the potential of pay at a higher level.

The performance of both the rig and crew has been excellent leading to a lower than anticipated Capex spend on this well which could therefore be allocated to an updip location at a later date."

For further information please contact:

Echo Energy plc Fiona MacAulay, CEO Will Holland, CFO	[e-mail] [e-mail]
Smith & Williamson (Nominated Adviser) David Jones Ben Jeynes Katy Birkin	[phone]
Hannam & Partners (Corporate Broker) Giles Fitzpatrick Andrew Chubb Ernest Bell	[phone]
Vigo Communications (PR Adviser) Patrick d'Ancona Chris McMahon Kate Rogucheva	[phone]

The information contained in this announcement has been reviewed by Echo Energy's Vice President, Exploration, Dr. Julian Bessa Msc, DPhil, a Fellow of the Geological Society and a Member of the Petroleum Exploration Society of Great Britain.

The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

Notes:

The assignment of the Echo´s participation in the Laguna de Los Capones licence is subject to the authorization of the Executive Branch of Santa Cruz´s Province, which is part of the overall process of title transfer that is proceeding as anticipated.

 

END

 

 

MSCDBGDLIUGBGIU