LONDON -- Echo Energy plc, the South and Central American focused upstream oil and gas company, is pleased to announce its 2018 work program, onshore Argentina.
The program is expected to commence in March 2018 with three back-to-back workovers of existing wells on Fracción D, which will then be followed by four back-to-back exploration wells on Fracción C and Laguna De Los Capones.
The Company is also simultaneously initiating a seismic program as it looks to unlock the potential of its highly prospective Tapi Aike exploration block where the Competent Person's Report included in the Company's admission document, dated Dec. 15, 2017 (CPR), identified an inventory of 41 leads, across three independent play types, including five individual leads each in excess of 1 Tcf and up to 3.8 Tcf. On an aggregated basis over 22 Tcf of gross unrisked potential GIIP was identified across the Tapi Aike Block (2.7 - 11.0 - 22.5 Tcf (Low-Mean-High).
Exploration well program:
The Company is delighted to confirm a back-to-back four-exploration well program, in the Company's producing licences of Fracción C and Laguna de Los Capones.
Drilling each well is expected to take approximately 15 days and cost some $1.8 million (Gross) on a dry hole basis, with completion costs of around $1 million (Gross). Drilling and environmental permits for the wells are very advanced, with approval for the first well (ELM1004) already complete and permits for the other wells likely to be approved by April 2018.
The Company has now secured the 1,000 Hp hydraulic PetrevenH-205 rig for the drilling program, which has an excellent operational and safety track record and has has been on contract to CGC (the Company's partner on its licences in Argentina) since 2016 elsewhere in the basin.
Appraisal workovers:
Prior to commencing the exploration drilling program on Fracción C and Laguna De Los Capones, the Company will complete three workovers, currently anticipated to commence in March 2018. The workovers will cover previously drilled but suspended gas wells in another of the Company's producing licences (Fracción D). Each workover is expected to take approximately 10 days and cost a total of $0.55 million per well. The program will involve perforation or re-perforation of each of the wells in the already discovered but uncompleted gas zones of the Springhill Formation. The wells will then be put on an extended well test prior to any sanction of commercialization.
Seismic acquisition:
In addition to the above drilling and workovers, the Company is focusing on unlocking its exploration potential in the Tapi Aike licence. As a first step towards the planned first exploration drill in 2019, the Company is planning a 1,200-km seismic acquisition program. Tendering for the acquisition program is underway and six companies were invited to bid. The Company expects to initiate the program in fourth-quarter 2018 and the results of the seismic will enable the planning of the first transformational exploration well in the area in 2019.