Operational Update

RNS Number : 4741M

Echo Energy PLC

30 April 2018

 

30 April 2018

Echo Energy plc

("Echo" or the "Company")

Operational Update

Echo Energy plc, the Latin American focused upstream oil and gas company, is pleased to provide an update on its operations at the Company's Fracción D and Fracción C assets, onshore Argentina.

Workovers

Following arrival of the full well testing equipment to the CSo-85 well, testing has commenced on the gas discovery and is anticipated to continue for a further 3 weeks with the initial clean up flow period now having been completed. Prospective gas resources for this Eastern flank of the Cañadon Salto field for the C1 and C3 horizons were estimated in the recent Competent Person's Report as 8.6 - 26.7 - 82.1 Bcf (Low-Mid-High, on a gross field basis) that subject to continued testing would be a positive indicator of the commerciality of the gas project which preliminary studies indicate need between 7-10 Bcf for commercial viability.

The deeper tobifera gas target also located in Cañadon Salto which carries Prospective Resources of 7-19-49 Bcf (Low-Mid-High, on a gross field basis) in addition to Contingent Resources of 7-19-49 Bcf (Low-Mid-High, on a gross field basis) may now be considered for a contingent exploration well later in the year.

The workovers to the west and centre of the field produced a combination of oil and water with the CSo-80 well having been suspended pending further development of the project to install an electric submersible pump. A number of other potential candidate locations have now been identified and will be incorporated into the rehabilitation project planning. The Quintara 01 rig is now demobilising from Fracción D and the Company expects that the total costs for this first part of the operational campaign are set to be materially lower than the budget of US$1.5 million.

Four Well Exploration Drilling Campaign

The Petreven H-205 rig which will be commencing the four well exploration programme is scheduled to commence mobilisation to the Company's Fracción C asset imminently and should arrive on location at the ELM 1004 well pad in early May. Further updates will be given when the rig is on location and ready to spud.

Seismic Acquisition Programme

Additionally, the Company, alongside its joint venture partner, is in receipt of multiple highly competitive tenders for the planned extensive campaign of c. 2,000 square kilometres of 3D seismic to be acquired across Fracción C, D and Tapi Aike expected to commence in Q3/Q4 2018 and will be announcing the successful bidder in due course.

Further announcements will be made, as appropriate.

Fiona MacAulay, Chief Executive Officer of Echo, commented:

"This is an exceptionally busy and exciting period for the Company and we are delighted to have completed this first phase of the operational programme on the Company's Fracción D asset safely and successfully. We are pleased that the positive results from the CSo-85 Well will enable us to assess the commerciality of the gas project for the field alongside planning of nearer term interventions to re-establish production from existing oil wells. We are also poised to commence our four well exploration programme in Fracción C in early May and alongside that are finalising the tenders for the Seismic Acquisition programme across all the licences scheduled to commence in Q3/Q4 2018. I would like to thank all the Echo team for their continued efforts to enable these multiple workstreams to continue.

For further information please contact:

Echo Energy plc Fiona MacAulay, CEO Will Holland, CFO	[e-mail] [e-mail]
Smith & Williamson (Nominated Adviser) Azhic Basirov David Jones Ben Jeynes	[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 Company's internal estimates are made in accordance with SPE standards.

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

 

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