Echo Energy PLC Operational Update (8161J)
August 26 2021 - 1:00AM
UK Regulatory
TIDMECHO
RNS Number : 8161J
Echo Energy PLC
26 August 2021
26 August 2021
Echo Energy plc
("Echo" or the "Company")
Operational Update
Liquid production increases
Echo Energy, the Latin American focused upstream oil and gas
company, is pleased to provide an operational update regarding its
Santa Cruz Sur assets, onshore Argentina, for Q3 2021 until 23
August 2021.
Operational Update
The Company is pleased to confirm that following installation of
the pipeline required to bring back online the liquids production
which was shut in April 2020, the infrastructure has now been
successfully commissioned for operation and shut-in wells are being
brought online. This follows an upgrade of the electrical
infrastructure, which was designed to support the first tranche of
production from the Campo Molino and Chorillos oil fields to
provide sufficient power to support sustained production from the
associated ten wells. These upgrades are also part of the Company's
strategy to control critical infrastructure previously rented from
contractors.
To date, the Campo Molino oil field has been brought back online
with four of the shut-in wells now back in operation and producing
from the Springhill reservoir. This first tranche of restored
production will increase the number of active producing oil wells
at Santa Cruz Sur to 18.
As of 23 August 2021, the recently reactivated wells have
contributed to an almost 50% increase in total liquids production
at Santa Cruz Sur compared to the period immediately prior to this
(281 bopd gross, 197 bopd net to Echo - during the period 1 -17
August 2021). This represents an increase of 137 bopd gross, 95
bopd net to Echo and work continues to bring the remainder of the
first tranche of shut-in production back online. The production
levels from the initial reactivated wells indicate that the shut-in
period has not had a detrimental impact on reservoir behaviour in
the Campo Molino oil field. Prior to shut-in, the combined gross
production from the ten oil wells was approximately 138 bopd gross,
96 bopd net to Echo, approximately the same level now being
achieved from the initial four wells, with the associated upgraded
infrastructure.
Daily operations across the asset base in Santa Cruz Sur
continue with the delivery of produced gas to industrial customers
under contract with premium winter pricing being achieved.
Production over the period from 1 January 2021 to 23 August 2021
reached an aggregate of 381,243 boe net to Echo, which included
48,211 bbls of oil and condensate and 1,998 mmscf of gas.
Martin Hull, Chief Executive Officer of Echo Energy,
commented:
"During Q3 2021 we have continued to make significant
operational progress and deliver against our objectives.
Successfully increasing our liquids production is an important
milestone. There remain further production upsides as we continue
through the programme of reopening previously shut-in wells.
Increased production combined with the continuing marked upswing in
global commodity prices materially increases our cashflows enabling
reinvestment to further drive growth. The ongoing production
increases have been achieved while maintaining our careful cost
management in order to maximise value for shareholders."
For further information, please contact:
Echo Energy via Vigo Communications
Martin Hull, Chief Executive Officer
Vigo Consulting (IR & PR Advisor)
Patrick d'Ancona
Chris McMahon +44 (0) 20 7390 0230
Cenkos Securities (Nominated Adviser)
Ben Jeynes
Katy Birkin +44 (0) 20 7397 8900
Shore Capital (Corporate Broker)
Jerry Keen +44 (0) 20 7408 4090
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. boe means barrels of oil equivalent; bopd means
barrels of oil per day; boepd means barrels of oil equivalent per
day; MMscf means million standard cubic feet of gas.
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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END
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