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CSo-2001(d) Well Completion and EMS-1001 Test Planning

Source: www.gulfoilandgas.com 8/28/2018, Location: South America

Echo Energy plc, the Latin American focused upstream oil and gas company announces the completion of testing of the CSo-2001(d) well and its suspension for a period of pressure monitoring at the Company's Fraccion D asset, onshore Argentina, operated by Compania General de Combustibles S.A. ("CGC").

The CSo-2001(d) well reached a total depth of 1,511m in the Upper Jurassic Tobifera formation across which, as previously reported, significant gas and hydrocarbon shows were recorded both on driling and wireline log data.

The testing programme has demonstrated that long term production from the adjacent Springhill formation has caused significant pressure depletion across this western flank of the field, and that the remaining gas in the underlying Tobifera will likely be insufficient to contribute economically to the Fraccion D gas project.

This depletion does not impact the Eastern flank of the Canandon Salto field, which has demonstrated through testing and pressure monitoring of the CSo-85 well that the extensive gas resource to the east remains economically viable for a monetisation project and that the information gathered will now enable the appropriate planning, sizing and timing of the required infrastructure.

As previously announced, following the successful workover of the CSo-80 well earlier in the year, a pump will now be installed on that well, and additionally a further 3 candidates for workover activities (pulling jobs) have been selected to restore or improve existing production. The Quintana-1 rig will now remain in the field area to complete these activities which are anticipated to be completed within the next 6 weeks.

The Company will also now work to finalise preparations for testing on the important EMS-1001 well, including the potential stimulation of select intervals which were interpreted as hydrocarbon bearing upon drilling. The Company again cautions that log results in this complex reservoir may not be conclusive indicators prior to testing of the well.

Fiona MacAulay, Chief Executive Officer of Echo, commented:

"Whilst disappointing to see the extent of the depletion effects of the Springhill formation production into this reservoir, the CSo-2001(d) well was drilled in part to help us understand the volumes to be dealt with for the gas monetisation project in Fraccion D, and phasing of that development. The focus of any plan will now concentrate on the dry gas of the Springhill Formation contained within the eastern flank of the field area to enable the right sizing of that project. The pulling projects that the rig is now moving to, including the pump installation project on the CSo-80 well, will enable a near term boost to oil production whilst we finalise planning for both the stimulation of the ELM-1004 well and further evaluation and testing of the EMS-1001 well, both anticipated later this year."

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