Oil to Surface at Second Workover

RNS Number : 7017L

Echo Energy PLC

23 April 2018

 

23 April 2018

Echo Energy plc

("Echo" or the "Company")

Oil to Surface at Second Workover

Echo Energy plc, the Latin American focused upstream oil and gas company, is pleased to announce the successful and safe completion of the second workover of the three well workover campaign at the Company's Fracción D asset, onshore Argentina. 

The workover of well CSo-80, a former oil producer from the C3 Springhill Formation, saw the well plugged back across the C3 interval and perforated in the shallower C1 Springhill Formation. The well is located within the central area of the now predominately shut in Canandon Salto field and, following perforation, a combination of oil and water flowed into the wellbore and to surface, indicating the re-distribution of fluid phases in the central part of the field into the former gas leg.

With oil now having been encountered in the CSo-80, the well will now be suspended while a project to install an electric submersible pump (ESP) is developed. Thereafter the well will be tested with a view to being brought directly into production using much of the existing oil production facilities at Fracción D. It is anticipated that production rates utilising an ESP are likely to be in the region of 60bopd for this well.

This positive result provides scope for Echo to consider, in tandem with the Company's gas pipeline sanction, the early field rehabilitation of the Canandon Salto oil field and the Company has commenced a process to identify a number of potential candidate wells for recompletion in the central part of the field.  

The Quintana rig will now be moving to the CSo-50 location on the West flank of the field to complete  the third and final workover of the current campaign. Echo confirms the recent arrival of the full well testing equipment to the CSo-85 location.

Further announcements will be made, as appropriate, in due course.

Fiona MacAulay, Chief Executive Officer of Echo, commented:

"We are pleased that this second well in the workover programme has yielded this gratifying result and means that we can work towards rapidly bringing this well into production utilising existing facilities in the field. The fact that oil has flowed into the wellbore in the former gas leg in the central part of the Canandon Salto field is particularly pleasing in opening the potential for Canandon Salto field rehabilitiation - for which a work programme across a number of potential well candidates across the field could re-establish further increases in production over the next few months."  

For further information please contact:

Echo Energy plc Fiona MacAulay, CEO Will Holland, CFO	[e-mail] [e-mail]
Smith & Williamson (Nominated Adviser) Azhic Basirov David Jones Ben Jeynes	[phone]
Hannam & Partners (Corporate Broker) Giles Fitzpatrick Andrew Chubb Ernest Bell	[phone]
Vigo Communications (PR Adviser) Patrick d'Ancona Chris McMahon Kate Rogucheva	[phone]

The information contained in this announcement has been reviewed by Echo Energy's Chief Operating Officer, Mr Geoffrey Probert MEng, Member of Institute of Materials, Minerals and Mining.

Bopd means barrels of oil per day.

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.

 

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