Acceleration of Fracción D Drilling
15 June 2018
Echo Energy plc
("Echo" or the "Company")
Acceleration of Fracción D Drilling
Echo Energy plc, the Latin American focused upstream oil and gas company, is pleased to announce that following completion of the succesful extended well test on well CSo-85 in the Company's Fracción D asset, the Company and its Joint Venture partner and operator Compañía General de Combustibles S.A. ("CGC") have elected to substitute the fourth and final well (Los Joaquines) in the current exploration programme across Fracción C and Laguna de Los Capones assets to enable the parties to drill the CSo 111-I well at Fracción D, targeting the Tobifera gas play, on an accelerated basis.
The CSo 111-I well would be located on the western flank of Cañadon Salto and would target total gross prospective resource of 18.8 bcf (best case) in addition to confirming existing contingent resources of 19.0 bcf (gross best case). Success on this well would further support an early decision for gas development at Fracción D.
The Los Joquines well, derisked through the drilling of the ELM 1004 well, has been substituted out of the current exploration programme by way of an agreed amendment to the CDL Farmout Agreement (covering the Fracción C, Fracción D and Laguna De Los Capones licence areas) between Echo and Joint Venture partner and operator CGC and will now instead potentially be drilled as the first well during the second phase of exploration drilling.
Fiona MacAulay, Chief Executive Officer of Echo, commented:
"The recent positive results from the extended testing at CSo-85 of the Springhill reservoir, mean that prior to sanction of any development plan the Company and its partner would like to understand the potential scale of development including contribution of gas from the Tobifera formation. We are delighted to be able to advance the drilling of CSo 111-1 well, as this will greatly enhance our understanding of the developable asset base in Fracción D and enable the optimised design of pipeline and processing facility capacities. We are, as ever, focused on maximising long term value for Echo shareholders and will continue to seek to optimise operational plans with that goal in mind."
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.
For further information please contact:
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Echo Energy plc Fiona MacAulay, CEO Will Holland, CFO
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Smith & Williamson (Nominated Adviser) David Jones Ben Jeynes Katy Birkin
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+44 (0)20 7131 4000 |
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Hannam & Partners (Corporate Broker) Giles Fitzpatrick Andrew Chubb Ernest Bell
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+44 (0)20 7907 8500
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Vigo Communications (PR Adviser) Patrick d'Ancona Chris McMahon Kate Rogucheva
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+44 (0)20 7390 0230 |
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 volumes included in this announcement are as included in the recent Competent Person's Report produced by Gaffney Cline & Associates and are in accordance with SPE standards; and bcf means billion standard cubic feet of gas.
Prospective Resources are those quantities of petroleum that are estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Contingent Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations, but the applied project(s) are not yet considered mature enough for commercial development because of one or more contingencies.
Note
The assignment of the Echo´s participation in the Fraccíon D 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.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
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