Last checked at 21 Nov 2019 07:00
21 November 2019
Echo Energy plc
("Echo" or the "Company")
CLM x-1: Commencement of Drilling
Echo Energy, the Latin American-focused upstream oil and gas company, is pleased to announce the commencement of drilling of the Campo La Mata x-1 ("CLM x-1") well on the Company's Tapi Aike block following the mobilisation of the Petreven H-205 rig to location earlier this week. CLM x-1 is the first well of an expected four-well Tapi Aike exploration drilling programme and is located in the eastern portion of the 3D seismic area, the Chiripia Oeste.
The primary target of CLM x-1 is a stratigraphic trap which lies in the Magallanes Formation ("Magallanes 20" or "Lobe C") at an approximate depth of 2,000 metres TVD. A secondary horizon in the Anita Formation ("D3") and a shallower secondary interval ("Magallanes 60") will also be targeted by the well and is expected to be encountered at depths of 2,225 metres TVD and 1,925 metres TVD respectively. Technical work with the operator, Compañía General de Combustibles S.A. ("CGC"), has identified a high negative amplitude signature at the target area and Class III amplitude vs offset characteristics.
The well will be drilled to a total measured depth of approximately 2,600 metres in two vertical sections. Furthermore, a core sample from Magallanes 20 will be extracted and tested, and a full suite of wireline logging will be conducted over all targeted intervals.
Completion of CLM x-1 is expected to take approximately four weeks. Should the results of drilling and logging support further operations, drilling and logging may be followed by a mechanical stimulation and well test, which is a standard technique in the basin. This is anticipated to take a further five to six weeks.
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 (Joint Corporate Broker) Jerry Keen
| +44 (0) 20 7408 4090 |
Hannam & Partners (Joint Corporate Broker) Giles Fitzpatrick Andrew Chubb Ernest Bell
| +44 (0) 20 7907 8500 |
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The assignment of Echo's 19% participation in the Tapi Aike 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. The licence is operated by Compañía General de Combustibles S.A. ("CGC").
The information contained in this announcement has been reviewed by Echo Energy's Vice President, Exploration, Dr. Julian Bessa Msc, DPhil, a Fellow of the Geological Society and a Member of the Petroleum Exploration Society of Great Britain.