Last checked at 6 Dec 2022 07:00
6 November 2022
Echo Energy plc
("Echo" or the "Company")
Operations Update: Successful Chorillos Well Reactivation
Echo Energy, the Latin American focused energy company, is pleased to provide an operational update regarding progress in the reactivation of three wells in the Chorillos field, announced by the Company on 10 November 2022.
This three well reactivation programme is in addition to the Santa Cruz Sur production and infrastructure enhancement plan first announced by the Company on 7 July 2022 (the "Enhancement Plan") and has been prioritised by the Santa Cruz Sur partners in seeking to further increase liquids production from the Chorillos field.
As previously announced, three candidate wells (Cho-10, Cho-13, Cho-19) had been offline for four years due to surface constraints and were identified for reactivation without use of the workover rig. Recently completed infrastructure upgrades had removed prior constraints, enabling these wells to be brought back into production.
The Company is pleased to announce that operations to reactivate the three wells have now been successful and safely completed and each of the three wells is now producing oil through surface lines to a field-storage tank.
Surface commissioning has now begun and, given the length of time that these wells have been offline, infrastructure integrity is being fully confirmed. This is expected to take several weeks, during which time the flow rate from the wells will be at intentionally reduced levels to enable the surface infrastructure to be fully tested under production conditions.
Following successful commissioning, each well will then be independently assessed with a mobile test unit, to confirm the yet to be determined flow-potential of this cluster.
The Company looks forward to continuing to update shareholders on further progress on these operations and in respect of the Enhancement Plan.
Martin Hull, Chief Executive Officer of Echo Energy, commented:
"The three well reactivation plan is an important operational development for our Santa Cruz Sur Assets. These wells were offline at the time of and prior to Echo's acquisition of an interest in Santa Cruz Sur in 2019 and our ability to safely, and successfully, reactivate these wells back to production is a great example of the breadth of the low-risk opportunity set that exists within our assets.
"This three well programme is in addition to the previously announced Santa Cruz Sur production and infrastructure enhancement plan and in light of the initial success, we look forward to executing similar opportunities, of which we believe there to be many, in the future. We remain committed to delivering on our strategy to grow production and look forward to reporting further progress."
For further information, please contact:
Echo Energy Martin Hull, Chief Executive Officer
| via Vigo Communications |
Vigo Consulting (IR & PR Advisor) Patrick d'Ancona Finlay Thomson
| +44 (0) 20 7390 0230 |
Cenkos Securities (Nominated Adviser) Ben Jeynes Katy Birkin
| +44 (0) 20 7397 8900 |
Arden Partners plc (Corporate Broker) Simon Johnson (Corporate Broking) John Llewellyn-Lloyd (Corporate Finance)
| +44 (0) 20 74614 5900 |
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.
Certain of the information contained within this announcement is deemed by the Company to constitute inside information as stipulated under The Market Abuse Regulation (EU 596/2014) pursuant to the Market Abuse (Amendment) (EU Exit) Regulations 2018. Upon the publication of this announcement via a Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.