Echo Energy Updates On Onshore Argentine Licenses

(Echo Energy plc, 15.Nov.2018) — Echo Energy provided an update on its planned operational programme and the continued development of its regional portfolio.

Initiation of Two Well Stimulation Programme

During 2018, Echo drilled four wells across the company’s onshore licences in Argentina (Fracción C licence). The first (ELM 1004) and third (EMS-1001) of these wells were initially successful with the company announcing on 21 June 2018 that the third well in the sequence was considered potentially material following interpretation from the wireline logs.

Echo announced that the equipment required for the stimulation of these two wells is expected to be available for the beginning of December and that a stimulation programme for each of the two wells will therefore commence within 3 to 4 weeks.

Production Update

In 2018, the company also successfully completed four well interventions (CSo-96, CSo-104, CSo-21, and CSo-80) in the Cañadon Salto Field, onshore Argentina (Fracción D licence). On 22 October 2018, the company announced that these wells had achieved stable production levels. Production from these wells has contributed to a total company average net production in the year to 12 November, of 876 barrels of oil equivalent per day.

Following the success of these workovers and the associated production uplift, the company has identified a number of additional candidates for well interventions and currently expects these operations to commence in Q1 2019.

Echo is also evaluating the potential for gas development projects within the Fracción D licence, with a view to monetising existing undeveloped 2C resources.

Tapi Aike

Echo’s primary objective in acquiring its Argentinean business earlier this year was to secure access to the high impact Tapi Aike exploration acreage.

The company intends to commence an exploration drilling programme on the licence in the second half of 2019, after completing the 1,200 km2 3D seismic programme which will start mobilisation in December.

The company believes that the Tapi Aike licence offers a compelling proposition with a likely 4 well drilling programme targeting multi Tcf potential with each well estimated to cost between $2M and $5M net to Echo.

Portfolio Development

Echo continues to actively evaluate a range of potential opportunities for the development of its portfolio in the region.

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