Echo Energy PLC 2018 Work Programme (5198E)
12 February 2018 - 6:00PM
UK Regulatory
TIDMECHO
RNS Number : 5198E
Echo Energy PLC
12 February 2018
12 February 2018
Echo Energy plc
("Echo" or the "Company")
2018 Work Programme
Echo Energy plc, the South and Central American focused upstream
oil and gas company, is pleased to announce its 2018 work
programme, onshore Argentina.
The programme is expected to commence in March 2018 with 3
back-to-back workovers of existing wells on Fracción D which will
then be followed by 4 back-to-back exploration wells on Fracción C
and Laguna De Los Capones.
The Company is also simultaneously initiating a seismic
programme as it looks to unlock the potential of its highly
prospective Tapi Aike exploration block where the Competent
Person's Report included in the Company's admission document dated
15 December 2017 ("CPR") identified an inventory of 41 leads,
across three independent play types, including five individual
leads each in excess of 1 Tcf and up to 3.8 Tcf. On an aggregated
basis over 22 Tcf of gross unrisked potential GIIP was identified
across the Tapi Aike Block (2.7 - 11.0 - 22.5 Tcf
(Low-Mean-High)).
Exploration Well Programme:
The Company is delighted to confirm a back-to-back 4 exploration
well programme, in the Company's producing licences of Fracción C
and Laguna de Los Capones.
Well Expected Maximum Prospect Post Estimated
Spud Anticipated Size (P50) tax unrisked Chance
Depth / Gross Mean of Success
Target Reservoir NPV10 (GCOS)
(Net
to Echo
50%)
US$M
--------------- ----------- ----------------------------- ------------- -------------- ------------
Estancia
La Maggie 1700m
X- 1004 May 2018 (Tobifera) 20 BCF $16.9 40%
--------------- ----------- ----------------------------- ------------- -------------- ------------
June
Los Alamos 2018 1900m (Springhill/Tobifera) 21 BCF $10.5 36%
--------------- ----------- ----------------------------- ------------- -------------- ------------
Molino June/July 2300m
Sur 2018 (Springhill) 11 MMBBLS $69.8 36%
--------------- ----------- ----------------------------- ------------- -------------- ------------
July
/August 1700m
Los Joaquines 2018 (Tobifera) 15 BCF $15.0 36%
--------------- ----------- ----------------------------- ------------- -------------- ------------
Drilling each well is expected to take approximately 15 days and
cost some US$1.8M (Gross) on a dry hole basis, with completion
costs of around US$1.0M (Gross). Drilling and environmental permits
for the wells are very advanced, with approval for the first well
(ELM1004) already complete and permits for the other wells likely
to be approved by April 2018.
The Company has now secured the 1,000 Hp hydraulic PetrevenH-205
rig for the drilling programme, which has an excellent operational
and safety track record and has has been on contract to CGC (the
Company's partner on its licences in Argentina) since 2016
elsewhere in the basin.
Appraisal Workovers:
Prior to commencing the exploration drilling programme on
Fracción C and Laguna De Los Capones, the Company will complete
three workovers, currently anticipated to commence in March 2018.
The workovers will cover previously drilled but suspended gas wells
in another of the Company's producing licences (Fracción D). Each
workover is expected to take approximately 10 days and cost a total
of US$0.55M per well. The programme will involve perforation or
re-perforation of each of the wells in the already discovered but
uncompleted gas zones of the Springhill Formation. The wells will
then be put on an extended well test prior to any sanction of
commercialisation.
Seismic Acquisition:
In addition to the above drilling and workovers, the Company is
focusing on unlocking its exploration potential in the Tapi Aike
licence. As a first step towards the planned first exploration
drill in 2019, the Company is planning a 1,200km seismic
acquisition programme. Tendering for the acquisition programme is
underway and six companies were invited to bid. The Company expects
to initiate the programme in Q4 2018 and the results of the seismic
will enable the planning of the first transformational exploration
well in the area in 2019.
Investor Visit:
The Company is intending to hold an investor event and site trip
in June 2018 with details to be finalised alongside the drilling
programme. Please contact s.dees@echoenergyplc.com to register your
interest in this event. A further 'Time with the Team' Q&A is
also planned for 14 March 2018, further details of registration
will be published on our newly relaunched website
www.echoenergyplc.com.
Fiona MacAulay, Chief Executive of Echo, commented:
'I am delighted to report that we are making real progress as we
move towards the commencement of our operational programme this
year. It is very pleasing that we have been able to move so rapidly
to the operational phase after the completion of the transaction to
enter Argentina. We are now ready to initiate an exciting programme
of back-to-back workovers, exploration drilling, seismic
acquisition and prospect generation. Our onshore exploration wells
are all located close to existing facilities and in the success
case can be commercialised into gas hungry markets at advantaged
pricing in very short order. We look forward to updating investors
on our progress in due course.'
For further information please contact:
Echo Energy plc
Fiona MacAulay, CEO f.macaulay@echoenergyplc.com
Will Holland, CFO w.holland@echoenergyplc.com
Smith & Williamson (Nominated
Adviser)
Azhic Basirov
David Jones
Ben Jeynes +44 (0)20 7131 4000
Hannam & Partners (Corporate
Broker)
Giles Fitzpatrick
Andrew Chubb
Ernest Bell +44 (0)20 7907 8500
Vigo Communications (PR Adviser)
Patrick d'Ancona
Chris McMahon
Kate Rogucheva +44 (0)20 7830 9700
The information contained in this announcement has been reviewed
by Echo Energy's Vice President, Exploration, Dr. Julian Bessa Msc,
DPhil, a Fellow of the Geological Society and a Member of the
Petroleum Exploration Society of Great Britain. The Company's
internal estimates are made in accordance with SPE standards.
GIIP means gas initially in place, the volume of gas in a
reservoir before production; Tcf means trillion standard cubic feet
of gas; Bcf means billion standard cubic feet of gas and mmbbls
mean millions of barrels of oil.
This information is provided by RNS
The company news service from the London Stock Exchange
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