Echo Energy Regulatory News (ECHO)

31 October 2019

Echo Energy

("Echo" or the "Company")

Tapi Aike Update

Echo Energy, the Latin American-focused upstream oil and gas company, provides the following update on progress in relation to its upcoming Tapi Aike drilling programme.

Following the successful completion of seismic analysis which has resulted in a positive decision to drill and, the subsequent refinement and finalisation of detailed engineering work, the Company is pleased to announce that the final location for the first well of a four well Tapi Aike exploration programme has now been selected by Echo and Compañía General de Combustibles S.A. ("CGC" or the "Operator"). The well will be located in Chiripia Oeste, the eastern portion of the Tapi Aike 3D survey area, and will be re-named Campo La Mata x-1 ("CLM x-1") on account of the now confirmed location.

All permits to enable operations to commence have been received, contracts have been awarded and, construction works are now being finalised on the well pad and access roads to the drill site.

The primary target of CLM x-1 is a stratigraphic trap which lies in the Magallanes Formation ("Magallanes 20") at an approximate depth of 2,000 metres. A secondary horizon in the Anita Formation ("D3") and a shallower secondary interval ("Magallanes 60") will also be targeted by the well. Technical work with the Operator has identified a high negative amplitude signature at the target area and Class III amplitude vs offset characteristics.

The achievement of these technical and operational milestones will enable drilling of CLM x-1 to be commenced on schedule during December 2019, if not before. The rig will be mobilised to the CLM x-1 location once its existing activity with CGC has completed.

The well will be drilled in two vertical sections, using the Petreven H-205 rig, to a Total Measured Depth of approximately 2,600 metres and a core will be cut over the primary target and a full suite of logs taken over all intervals of interest.

In a success case, CLM x-1 will be completed and may be followed by a mechanical stimulation, which is a standard technique in the basin.

Further announcements will be made, as appropriate.

Martin Hull, Echo Energy's Chief Executive Officer, commented:

"The Company is pleased to report positive operational progress in moving towards the drilling of the CLM x-1 well and to confirm that we are now in the final stages of preparation as we await the mobilisation of the contracted drilling rig. "

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Note

The assignment of Echo´s 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").