(Sharecast News) - Latin America-focussed Echo Energy updated the market on progress in the execution of the Santa Cruz Sur assets production and infrastructure enhancement plan on Thursday, which it first announced on 7 July.
The AIM-traded firm said upgrades to the workover rig owned by the Santa Cruz joint venture partners had now been successfully completed.
As it previously announced, the enhancement plan was targeting a total of around 30 or more wells, with interventions to begin on mobilisation of the workover rig to the field.
"The scheduling of activities, on a well-by-well basis, remains dependent on the availability of materials required for individual well interventions and operational activities, including the timing of the future mobilisation of the now upgraded workover rig, will also be optimised from cash flow at the asset level in order to maximise the benefit of funds available," the board said in its statement.
"Detailed scheduling and optimisation of the well reopening programme under the enhancement plan has been undertaken and three additional oil wells have been identified which do not require the mobilisation of the workover rig.
"These wells have been offline for four years due to surface constraints."
However, Echo said recently-completed infrastructure upgrades had now removed those constraints, and would enable the wells to be reactivated with the objective of bringing them back into production.
The three additional wells would be prioritised by the Santa Cruz Sur partners in seeking to further increase liquids production from the Chorillos field.
Echo said the three-well programme had now started. and operations were expected to take about three weeks.
"Following the previously-announced successful completion of the first phase of the enhancement plan focussed on the power generation facilities, the already-commenced programme to upgrade compressor capacity across the Santa Cruz Sur assets remains ongoing.
"Efforts continue to optimise the balance between maximising production and cashflow, minimising disruption and shortening the time required to complete the upgrades."
Production at Santa Cruz Sur in the first month of the fourth quarter was described as "strong", with average daily production in October of 1,610 barrels of oil equivalent net to Echo's 70% interest.
That represented the highest monthly average production achieved in 2022, and a 13% increase over the monthly average during the third quarter of the year.
"These increased production levels demonstrate the positive impact of the successful implementation of the initial phases of the enhancement plan."
Corresponding net gas production for October was 7.7 million standard cubic feet per day, with liquids production of 325 barrels of oil per day.
That, the board said, represented the highest monthly average achieved for liquids in 2022, and a 27% increase over the levels achieved in January, as it prioritised liquids production given current commodity markets.
"The company looks forward to continuing to update shareholders on further operational progress."
At 1130 GMT, shares in Echo Energy were up 3.49% at 0.24p.
Reporting by Josh White for Sharecast.com.
Echo Energy (ECHO)