(Alliance News) - Echo Energy PLC said Monday the integration of the recently-acquired Santa Cruz Sur assets in Argentina is "progressing positively," with mobilisation of the rig expected by the end of the year.
The Latin America-focused upstream oil and gas company said meetings have been held between the company and the operator, with particular focus on the near-term work programme and 2020 activity and budgets.
Echo announced the Santa Cruz Sur deal in late October, which saw it acquiring 70% of the Argentine on-shore production blocks from Phoenix Global Resources PLC.
Since November 1, Santa Cruz Sur has delivered average gross production of 3,687 barrels of oil equivalent per day, the company said.
The company also said once the rig has completed drilling the Campo La Mata x-1 well on the Tapi Aike licence, it will move to the Palermo Aike production concession on Santa Cruz Sur to spud the Campo Limite exploration well .
Mobilisation of the rig to the drill site is expected to take place by year end, the company noted.
The Campo Limite exploration well will target the conventional Springhill reservoir on a structure located two kilometres from the Chilean border and will be drilled to a depth of approximately 2,600 meters in two vertical sections.
Martin Hull, chief executive, said: "We are delighted to be able to confirm the Campo Limite well remains on track to spud before year end, representing the continuing delivery of our growth strategy."
Echo Energy shares closed up 5.7% in London at 2.80 pence each on Monday.
By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com
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Echo Energy (ECHO)