Echo Energy PLC ELA-1 Well Completion (4191Q)
June 06 2018 - 2:01AM
UK Regulatory
TIDMECHO
RNS Number : 4191Q
Echo Energy PLC
06 June 2018
6 June 2018
Echo Energy plc
("Echo" or the "Company")
ELA-1 Well Completion
Echo Energy plc, the Latin American focused upstream oil and gas
company, announces the succesful completion of drilling of the
ELA-1 exploration well at the Company's Laguna Los Capones Asset
(surrounded by the Fraccio n C licence area), onshore Argentina.
This block is operated by Compan i a General de Combustibles S.A.
("CGC"), the Company's Argentinian partner. The well reached a
total depth of 1,820m in the Upper Jurassic Tobifera formation.
Wireline log evaluation has been completed and a final production
casing run, prior to suspending the well for possible testing
and/or sidetrack.
In the deeper Tobifera volcaniclastic target, the well
encountered elevated gas shows of C1 through C4 hydrocarbon
indicators across an interval of approximately 40m in addition to
some oil staining. This section is evaluated as being a thinly
bedded sequence of oil pay intervals, with around 8m of net pay
currently interpreted across that section. As is normal in this
basin, the determination of effectiveness of pay from the wireline
log analyses is complicated due to the complex mineralogy of the
volcanic reservoir, and the current workflow is to determine the
potential for testing this section when the test rig is on the
licence. If testing proves to be successful the well could be
brought into production quickly.
In the shallower primary Springhill target, whilst the well
encountered gas shows at the top of the section and 57m of high
quality reservoir, the sequence is believed to be effectively water
bearing at this location. Given the thickness and quality of the
reservoir at this location on the flank of the structure, the
Company and CGC will likely consider a potential future sidetrack
updip and to the crest of the structure where it is now believed
that the Springhill deposition could be continuous.
Following completion of this phase of the operation on the
ELA-1, the rig will move directly to the third prospect in the
Company's four well exploration progamme, El Molino Sur, located on
the Fraccio n C asset and to the south of the current well
location
Fiona MacAulay, Chief Executive Officer of Echo, commented:
"The interpretation of oil in the Tobifera at this location is
exciting and suggests the ability of that formation to generate
hydrocarbons in situ as is seen in the nearby Laguna Maria field
which has been on production since 2016. If testing determines that
this section can support commercial flow rates, the well can be
quickly brought into production.
Whilst the Springhill reservoir had only a limited interval of
gas shows at this location, the extent and quality of the
Springhill reservoir on the flanks of the structural high, is
likely to indicate that the reservoir may unusually extend across
the top of the structure with the potential of pay at a higher
level.
The performance of both the rig and crew has been excellent
leading to a lower than anticipated Capex spend on this well which
could therefore be allocated to an updip location at a later
date."
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)
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
Vigo Communications (PR Adviser)
Patrick d'Ancona
Chris McMahon
Kate Rogucheva +44 (0)20 7390 0230
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 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.
Notes:
The assignment of the Echo's participation in the Laguna de Los
Capones licence is subject to the authorization of the Executive
Branch of Santa Cruz's Province, which is part of the overall
process of title transfer that is proceeding as anticipated.
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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