Echo Energy seeing solid production from Argentina
How is it doing
In March, the Argentina-focused oil and gas firm said that output from the Fracción C and Fracción D licences amounted to 315,825 barrels oil equivalent, which translates to an average rate of 865 boe per day.
Around 31% of its production was oil and it saw an average sales price of US$63.80 per barrel.
Produced gas, meanwhile, was sold in the Argentinian market at a price of US$3.99 per million British thermal unit.
Echo is considering how to maximise potential returns from any new work-over programmes at the Fracción D’s Canadon Salto field.
No new work-overs are due to get underway before the end of the first quarter of 2019.
A 3D seismic programme is underway at Tapi Aike’s eastern cube on Tapi Aike.
Initial indications suggest very good data quality.
The equipment will now mobilise to the western cube and start acquisition once all equipment is on site and surveys have been completed.
Eastern cube (Chiripa Oeste) covers 414 sq km and the western cube (Travesia de Arriba) covers 790 sq km.
Seismic results will underpin the Tapi Aike drilling campaign.
Joint evaluation in Bolivia
Away from Argentina, Echo has an involvement in the neighbouring Latin American country of Bolivia, where it is currently partnered in a joint evaluation agreement with Pluspetrol for the Huayco block in the prolific Tarija basin.
Tarija is believed to be home to 85% of Bolivia’s gas reserves.
Echo also recently agreed a new agreement in Bolivia for the onshore Rio Salado Block.
- Oil and gas prices moving positively
- Argentina has been a difficult place to explore but global oil and gas prices have moved in the sector's favour even if the economic situation in the country remain uncertain.
- First oil sales from its Argentine blocks were priced at more than US$70 per barrel or close to a three-year high for Brent crude.
In a note to clients, analysts at joint house’broker Shore Capital said: “Echo’s unaudited net cash position as at 31 December 2018 was approximately US$15.6mln and, with Echo continuing to press ahead with its seismic programme ahead of an exciting drilling campaign at Tapi Aike, we continue to highlight the company’s active work programme at this high impact project, where we see considerable unrisked potential.”
Echo Energy PLC (LON:ECHO) has a 50% working interest in four onshore blocks in Argentina.
Of these, Fraccion C, Fraccion D, and Laguna De Los Capones, either have previously or are in production while the fourth is an exploration permit for the Tapi Aike block.
Echo also has early stage acreage in Bolivia