Last checked at 30 May 2022 07:00
30 May 2022
Echo Energy plc
("Echo" or "the Company")
Argentina Operational Update
Echo Energy, the Latin American focused upstream energy company, is pleased to provide a operational update regarding the Company's producing Santa Cruz Sur assets, onshore Argentina.
The Company confirms that daily gas production has materially increased in the Oceano field, following a successful facilities maintenance and upgrading programme focussed on improvements in efficiency, reliability and load capacity of the gas facilities at Oceano, which delivers gas to residential suppliers. As part of the Company's plan to increase production, the Oceano field was temporarily shut-in in April 2022 to allow for maintenance and upgrades to the compressor and associated infrastructure.
In Q1 2022, the Oceano field produced an average of 1.72 MMscf/d of gas (net to Echo) and is now producing at an average rate of 2.63 MMscf/d of gas (net to Echo) over the 12 days following the maintenance and upgrades. This represents an increase of 53% in daily gas production at the Oceano field and markedly exceeds the Company's expectations prior to the operations being undertaken.
Following post-maintenance commissioning, total average daily gas production (net to Echo) across the Santa Cruz Sur assets, for the 12 days prior to 21 May 2022, increased to 8.4 MMscf/d being a 14% increase over the average daily gas production levels achieved in Q1 2022.
As previously announced, the Company has identified an extensive programme of production enhancement opportunities across its portfolio of assets at Santa Cruz Sur, including infrastructure and facility improvements, well interventions and well workovers.
Martin Hull, Chief Executive Officer of Echo Energy, commented:
"The increase in production from the Oceano field is clearly encouraging and is a further demonstration of the significant potential that we believe exists within the Company's Santa Cruz Sur assets. We continue our focus, as cashflow allows, on making targeted and cost effective investments to drive production performance and improving revenues in an environment of sustained elevated commodity prices. We remain committed to building value for our shareholders and look forward to reporting further progress"
For further information, please contact:
Echo Energy Martin Hull, Chief Executive Officer
| via Vigo Communications |
Vigo Communications (PR Advisor) Patrick d'Ancona Chris McMahon
| +44 (0) 20 7390 0230 |
Cenkos Securities (Nominated Adviser) Ben Jeynes Katy Birkin
| +44 (0) 20 7397 8900 |
Shore Capital (Corporate Broker) Anita Ghanekar | +44 (0) 20 7408 4090 |
Note
The assignment of Echo's 70% non-operated participation in the Santa Cruz Sur licences is subject to the authorisation of the Executive Branch of Santa Cruz's Province, which is part of the overall process of title transfer that is proceeding as anticipated. MMscf/d means million standard cubic feet of gas per day.
The information communicated within this announcement is deemed to constitute inside information as stipulated under the UK version of the EU Market Abuse Regulation (596/2014) which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended and supplemented from time to time. Upon the publication of this announcement, this inside information is now considered to be in the public domain.