(Alliance News) - Echo Energy PLC said Thursday that drilling of the Campo Limite exploration well in the Palermo Aike concession in Santa Cruz Sur, Argentina may have revealed increased reservoir volumes in the area.
The Latin American-focused oil & gas firm said the CLix-1001 well has identified the top of its primary target, the Springhill formation, 28 metres above pre-drill prognoses and 58 metres above the interpreted regional water contact zone in the area.
The revelation of the Springhill Formation being shallower than pre-drill estimates, is potentially indicative of increased reservoir volumes situated above the water contact, however future technical work will be need to confirm this.
Echo Energy said following the completion of drilling operations on the well, testing operations are expected to start in the second half of February.
The Eagle workover rig will be mobilised to the well, with the objective of determining the productivity of the Springhill reservoir at the CLix-1001 well location and identify which intervals are net pay.
"The company cautions that completion of the well test and analyses of the results is needed to conclusively establish both the presence of producible gas at CLix-1001 and the potential for the CLix-1001 well to de-risk further appraisal and development targets in the Campo Limite area. The presence of additional gas resources, if confirmed, would provide enhanced commercial development scenarios for existing discovered volumes at Palermo Aike," Echo Energy stated.
Shares in Echo Energy - which is based in London - were down 1.2% at 2.12 pence on Friday.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Echo Energy (ECHO)