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Echo Energy hits “significant hydrocarbons” in EMS-1001 exploration well

Published: 16:14 21 Jun 2018 AEST

oil and gas operations
A test rig is due on site in July

Echo Energy Plc (LON:ECHO) has told investors that “significant hydrocarbons” have been identified in the EMS-1001 through the interpretation of well data.

Specifically, the Argentina-focused exploration company, in a statement, said that a “significant light oil column” was encountered in its third well of a four well programme.

EMS-1001 is located within the Fraccíon C licence, it was drilled down to 2,460 metres and it cut through the Upper Jurassic Tobifera formation in which significant gas and hydrocarbon shows were recorded.

READ: Echo Energy switches Argentina drill schedule to accelerate Fracción D

It said that the Tobifera Formation was encountered between 1,722 metres and 2,220 metres meaning that, if hydrocarbon saturations are confirmed, the well may have hit a 500 metre column.

Echo highlighted that such a result could “significantly open up the play for the area”.

Fiona MacAulay, Echo chief executive, said: "We are delighted that initial interpretation of our third well suggests a material and potentially transformational light oil column in the emerging Tobifera play of the basin, exceeding our high case expectations.

“We can already consider results for this well to date to be very encouraging from a volumetric and value perspective.”

The well is now being completed, with production casing being set, before it is suspended for a future testing programme. A test rig is due to arrive in July.

“Testing is the critical next step to establish the effectiveness and deliverabilty of the reservoir and we caution that any conclusions prior to test results would be premature,” MacAulay added.

“The company will now take the time required to confirm the early interpretation of the wireline logs and design an effective test program with a view to confirming the scale of our new oil discovery.”

In the meantime, the drilling rig will move to the Fraccíon D project where the fourth and final well of the current campaign will be drilled.

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