Operational Update re Enhancement Plan
25 July 2022
Echo Energy plc
("Echo" or the "Company")
Operational Update on the Production and Infrastructure Enhancement Plan
Echo Energy, the Latin American focused energy company, is pleased to provide an operational update regarding progress in the execution of the Santa Cruz Sur assets Production and Infrastructure Enhancement Plan previously announced by the Company on 7 July 2022 (the "Plan").
As previously announced, the first operational priority under the Plan is to upgrade the power generation capacity sufficient to sustain the elevated production levels anticipated as possible under the plan, the Company is therefore pleased to announce that a contract for the long-term provision of gas-powered electricity generation units to the Joint Venture for installation across the Cerro Molino Oeste, El Indio Oeste and Oceano fields has now been signed.
Accordingly, equipment has now been mobilised to the field in Santa Cruz Sur and installation is anticipated to take a month from commencement. The new generation infrastructure consists of one unit of 1,375 Kilo Volt Amps (KVA) capacity for the Cerro Molino Oeste field, one unit of 375 KVA capacity for the El Indio Oeste field, and one unit of 375 KVA capacity to be installed in the Oceano field. The on-site installation and commission of all three units will begin during the week commencing 25 July 2022, notwithstanding the winter conditions currently being experienced at Santa Cruz Sur. The work will be undertaken by Santa Cruz Sur Joint Venture staff.
El Indio Oeste will be installed first, followed by Oceano and then Cerro Molino Oeste. These works will be carried out with the intention of minimising any disruption to existing gas and oil production, although some temporary impact is expected. Following these units' installation, additional power will be available to support existing and future production levels. Although there may be some increase to current production, these infrastructure upgrades are in preparation for the recommissioning of shut-in wells using the Joint Venture rig. Work has also commenced on upgrading this pulling rig in anticipation of this upcoming set of operations.
The installation of the additional power generation capacity, alongside the upgrading of the workover rig, represents a critical step in the delivery of the Plan. The Company looks forward to continuing to update shareholders on progress on these plans throughout this year.
A second set of planned infrastructure improvements will be focused on the maintenance and optimisation of the compressors at Cerro Norte and Campo Bremen to enable the increased volumes of associated gas to be processed and then sold into the main gas export line. This operation is anticipated to take approximately three months from commencement and will be carried out with the intention of minimising any disruption to existing gas production, although some temporary impact is expected.
For further information, please contact:
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Echo Energy Martin Hull, Chief Executive Officer
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via Vigo Communications |
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Vigo Consulting (IR & PR Advisor) Patrick d'Ancona Chris McMahon
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+44 (0) 20 7390 0230 |
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Cenkos Securities (Nominated Adviser) Ben Jeynes Katy Birkin
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+44 (0) 20 7397 8900 |
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Arden Partners plc (Corporate Broker) Simon Johnson (Corporate Broking) John Llewellyn-Lloyd (Corporate Finance)
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+44 (0) 20 74614 5900 |
Note
The assignment of Echo's 70% non-operated participation in the Santa Cruz Sur licences is subject to the authorisation of the Executive Branch of Santa Cruz's Province, which is part of the overall process of title transfer that is proceeding as anticipated. The information contained in this announcement has been reviewed by Echo Energy's Vice President, Exploration, Dr. Julian Bessa Msc, DPhil, MBA ,a Fellow of the Geological Society and President of the Petroleum Exploration Society of Great Britain.
Certain of the information contained within this announcement is deemed by the Company to constitute inside information as stipulated under The Market Abuse Regulation (EU 596/2014) pursuant to the Market Abuse (Amendment) (EU Exit) Regulations 2018. Upon the publication of this announcement via a Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.
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