LONDON (Alliance News) - Latin America-focused oil & gas company Echo Energy PLC said on Monday it has signed a technical evaluation agreement with Yacimientos Petroliferos Fiscales Bolivianos for the Rio Salado block, onshore Bolivia.
The work programme will include the interpretation and integration of three 2D seismic lines, first acquired in 2015 and made available recently, which will be important in refining the definition of a deep structure mapped across the Rio Salado and Huayco blocks.
Echo Energy estimates the original gas in place at 1.75 trillion cubic feet for the whole structure.
The acquisition of an interest by Echo in Rio Salado remains dependent on final commercial terms being agreed.
In addition, Echo Energy is continuing the joint evaluation agreement with Pluspetrol over the Huayco block. During the last 12 months to date Echo completed a full reprocessing of a 250 kilometre of 3D data across Huayco and part of Rio Salado.
In Argentina, Echo Energy has continued work on the Fraccion C licence, with the perforation of the third well EMS-1001. The company also performed inflow tests on two representative intervals, looking to ensure that there no mobile formation water presence.
Echo said it is now satisfied that the intervals are suitable for mechanical stimulation, and will move on to the next phase of its work programme
"We are delighted to have signed the TEA with YPFB for the Rio Salado block, as well as extended our agreement with Pluspetrol regarding Huayco, given the potential we see running across both blocks. Much technical work has been done and we are pleased that by extending our agreement with Pluspetrol we have given ourselves time to further analyse what we still believe to be exciting potential as we evaluate newly available industry data across the licence areas," said Chief Executive Fiona MacAulay.
Shares in Echo Energy were down 1.0% at 9.80 pence on Monday.
Echo Energy (ECHO)