(Alliance News) - Echo Energy PLC said Wednesday the Campo La Mata Exploration well CLM x-1 in the Tapi Aike licence in Argentina returned a non-commercial gas discovery.
Echo Energy shares were trading 30% lower in London at 1.43 pence each on Wednesday.
The Latin American-focused oil & gas firm said its primary Lobe C target flowed at surface at an estimated rate up to 0.28 million standard cubic feet per day, while the secondary Anita target flowed at 0.57 million standard cubic feet per day.
However, this was not enough to reach the threshold of commerciality, which is approximately 1.0 million standard cubic feet per day.
As a result, the company is now considering testing the shallower Magallenes 60 and Magallenes 40 intervals, secondary targets of CLM x-1 well, in order to achieve an aggregated commercial threshold.
Martin Hull, chief executive officer, said: "It is a disappointment that our initial exploration well at Tapi Aike has returned non-commercial flow rates from the tested intervals.
"Data from the CLM-x-1 well will now be used to calibrate and further inform our subsurface model and the joint venture partnership will use this enhanced dataset to identify future drilling locations on the licence. It is anticipated that the second Tapi Aike Exploration well will spud in the second half of 2020," Hull said.
Echo Energy also said testing operations at the recently drilled Campo Limite CLix-1001 well at Santa Cruz Sur, Argentina, are expected to commence in the second half of February as scheduled.
By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com
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Echo Energy (ECHO)