Echo Energy PLC Operations Update (4093H)
November 15 2018 - 1:01AM
UK Regulatory
TIDMECHO
RNS Number : 4093H
Echo Energy PLC
15 November 2018
15 November 2018
Echo Energy plc
("Echo" or the "Company")
Operations Update
Echo Energy, the Latin American focused upstream oil and gas
company, is pleased to provide an update on its planned operational
programme and the continued development of its regional
portfolio.
Initiation of Two Well Stimulation Programme
During 2018, the Company 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.
The Company is pleased to confirm 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 is delighted to confirm that, it has
identified a number of additional candidates for well interventions
and that it currently expects these operations to commence in Q1
2019.
The Company 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
The Company'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 is pleased to confirm that it intends to commence an
exploration drilling programme on the licence in the second half of
2019, after completing the 1,200 km(2) 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
The Company continues to actively evaluate a range of potential
opportunities for the development of its portfolio in the
region.
The Company looks forward to updating shareholders on the
Operational activities in due course in what will be a renewed
period of Operational activity.
For further information please contact:
Echo Energy plc
Fiona MacAulay, CEO f.macaulay@echoenergyplc.com
Smith & Williamson (Nominated
Adviser)
David Jones
Ben Jeynes
Katy Birkin +44 (0)20 7131 4000
Hannam & Partners (Corporate
Broker)
Giles Fitzpatrick
Andrew Chubb
Ernest Bell +44 (0)20 7907 8500
Shore Capital (Joint Corporate
Broker)
Jerry Keen +44 (0)20 7408 4090
Vigo Communications (PR Adviser)
Patrick d'Ancona
Chris McMahon
Kate Rogucheva +44 (0)20 7390 0230
Note
The assignment of Echo's participation in the Fracción C,
Fracción D, Laguna Los Capones and Tapi Aike 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 licences are operated by Compan i a
General de Combustibles S.A. ("CGC").
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.
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.
END
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