LONDON (Alliance News) - Echo Energy PLC on Monday reported positive results following the extended CSo-85 well testing, located in Fraccion D asset, in the mature Canadon Salto field in Argentina.
The Fraccion D asset is a joint venture between Echo Energy and Compania General de Combustibles SA.
The oil & gas company said well CSo-85 underwent an extended well test period which included 16 days of stabilised gas production at a variety of choke sizes from six to 14 millimetres. This well achieved a maximum rate of 2.5 million standard cubic feet per day at a tubing head pressure of 432 pounds per square inch.
The test result also showed that the well is in direct communication with a volume of about 4.0 billion cubic feet of natural gas in the Springhill C1 reservoir.
Echo Energy said the Springhill C1 reservoir, located on the eastern flank of Canadon Salto field, has a total of 15.3 billion cubic feet of resources. In addition to these Springhill C1 resources, the deeper Springhill C3 reservoir, also present across the same eastern flank, has some 11.6 billion cubic feet of resources.
The company said it plans to integrate both reservoirs into a development plan.
The joint venture is currently evaluating the drilling of an additional Tobifera gas well on the western flank of Canadon Salto field. The companies expect to find 18.8 billion cubic feet of resources at Tobifera. The successful completion of Tobifera well would support an early decision for gas development at Fraccion D.
"The extended testing of the Springhill C1 reservoir on the eastern flank of the Canadon Salto field has provided us with some very positive data relating to the likely commerciality of the gas development of the field," said Chief Executive Fiona MacAulay.
"Echo and its partner are working to establish a fully costed development plan including the pipeline and associated gas processing facilities along with the timeline on which we could anticipate the development activities to commence," added MacAulay.
Shares in Echo Energy were 0.3% lower on Monday at 11.62 pence each.
Echo Energy (ECHO)