Last checked at 13 Jan 2023 07:00
13 January 2023
Echo Energy plc
("Echo" or the "Company")
Q4 2022 Production Update & Directorate Change
Echo Energy, the Latin American focused energy company, is pleased to provide an operational update regarding its Santa Cruz Sur assets, onshore Argentina, for the quarter ended 31 December 2022 ("Q4 2022").
Operational Update
During Q4 2022, daily operations in the field at Santa Cruz Sur continued to deliver produced gas and liquids to key industrial customers and total 2022 cumulative production from Santa Cruz Sur, net to Echo's 70% interest, reached an aggregate of 532,302 boe (including 101,574 bbls of oil and condensate and 2,584 MMscf of gas).
During Q4 2022, net liquids production averaged 298 boepd whilst net gas production averaged 7.3 MMscf/d. Net daily production averaged 1,522 boepd during the quarter. The combined Q4 2022 oil and gas production levels were the highest quarterly levels achieved in 2022 and reflect the measures undertaken under the Company's Production and Infrastructure Enhancement Plan (the "Plan") to improve infrastructure. Liquids production during Q4 2022 was the ninth continuous quarter of production growth, and a 12% production increase over Q1 2022. Average liquids production over the course of 2022 was 278 bbls per day, 25% higher than that in the previous year.
Quarter | Aggregate Net Production (boe) | Average Net Production rate (boe/d) | Aggregate Net Liquids Production (bbls) | Average Net Liquids Production rate (bbls/d) | Aggregate Net Gas Production (MMscf) | Average Net Gas Production (MMscf/d) |
Q1 2022 | 134,167 | 1,491 | 23,830 | 265 | 662 | 7.4 |
Q2 2022 | 127,123 | 1,397 | 24,770 | 272 | 618 | 6.8 |
Q3 2022 | 130,963 | 1,424 | 25,527 | 276 | 629 | 6.9 |
Q4 2022 | 149,049 | 1,522 | 27,447 | 298 | 675 | 7.3 |
2022 | 532,302 | 1,458 | 101,574 | 278 | 2,584 | 7.1 |
As previously announced on 10 November 2002, the scheduling of activities under the Plan is currently being optimised from cash flow at the asset level in order to maximise the benefit of funds available. Given the success of the Plan to date, the Company is also looking at options to increase working capital availability which can be used for the benefit of accelerating production increases in early 2023 under the Plan. These production increases target the reactivation of a total of approximately 30 or more wells in Santa Cruz Sur which, when combined with the infrastructure upgrades under the Plan, could result in further increases to net production.
The Company looks forward to updating shareholders on further progress on production growth under the Plan.
Martin Hull, Chief Executive Officer of Echo Energy, commented:
"I am pleased to report that we continue to make progress with our Plan. This is a strong set of quarterly production results, with liquids production showing a ninth continuous quarterly increase. This production growth is a direct result of the infrastructure investments that we made under the Plan during 2022. We remain committed to delivering on our strategy to grow production and are looking at working capital options that can build on the initial success of the programme and accelerate production growth from Santa Cruz Sur. I look forward to reporting further progress that will deliver value to our shareholders."
Directorate Change
The Company also announces that further to the announcement on 13 October 2022, the Company confirms that Marco Fumagalli has stepped down as a Director of the Company with immediate effect.
James Parsons, Echo's Chairman, said:
"We would like to reiterate our thanks to Marco for his contribution over the last few years and wish him well with his future plans."
For further information, please contact:
Echo Energy Martin Hull, Chief Executive Officer
| via Vigo Consulting |
Vigo Consulting (IR/PR Advisor) Patrick d'Ancona Finlay Thomson Kendall Hill
| +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 7614 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. Boe or bbls means barrels of oil equivalent; bbl/d means barrels of oil per day; boepd means barrels of oil equivalent per day; MMscf mean million standard cubic feet of gas; MMscf/d means million standard cubic feet of gas per day.
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.