17:00 Mon 08 Jun 2020
Echo Energy PLC - Santa Cruz Sur: Reserve and Resource Update
("Echo" or "the Company")
From
The Company is pleased to confirm the identification of an initial portfolio of sixteen low cost workover and intervention operations at Santa Cruz Sur focussed on 1P proven developed non producing ("PDNP") and 2P reserve intervals - with the intention of bringing those volumes into production and, therefore, migrating the associated volumes to proven developed producing ("PDP") reserves. The cost of workover potentials identified is low, as compared to the cost of a new well, and given that the workovers sit in the developed part of the field, they are straight forward to bring online.
This initial portfolio of opportunities is part of a wider portfolio of
Estimated Santa Cruz Sur Reserves as at
Reflecting production from
|
Gross (100%) |
Net attributable to Echo's 70% working interest |
||||||||
1P |
2P |
3P |
1P |
2P |
3P |
|||||
PDP |
PDNP |
Total |
PDP |
PDNP |
Total |
|||||
Oil (MMbbls) |
0.97 |
0.32 |
1.29 |
3.29 |
3.57 |
0.68 |
0.22 |
0.90 |
2.30 |
2.50 |
Gas (Bcf) |
15.9 |
7.2 |
23.1 |
78.9 |
83.6 |
11.1 |
5.0 |
16.1 |
55.2 |
58.5 |
Total (MMboe) |
3.80 |
1.60 |
5.40 |
17.34 |
18.47 |
2.66 |
1.12 |
3.78 |
12.14 |
12.93 |
Estimated Santa Cruz Sur Unrisked Prospective Resources as at
Based on the resource inventory as at
|
Gross (100%) |
Net attributable to Echo's 70% working interest |
Risk Factor |
||||
|
Low Estimate |
Best Estimate |
High Estimate |
Low Estimate |
Best Estimate |
High Estimate |
% |
Oil (MMbbls) |
|
|
|
|
|
|
|
|
0.50 |
1.41 |
3.94 |
0.35 |
0.99 |
2.76 |
70% |
|
- |
- |
- |
- |
- |
- |
13% |
Total oil |
0.50 |
1.41 |
3.94 |
0.35 |
0.99 |
2.76 |
- |
Gas (Bcf) |
|
|
|
|
|
|
|
|
13.4 |
34.1 |
97.4 |
9.4 |
23.9 |
68.2 |
70% |
|
1.3 |
27.3 |
557.2 |
0.9 |
19.1 |
390.0 |
13% |
Total gas |
14.7 |
61.4 |
654.6 |
10.3 |
43.0 |
458.2 |
- |
Workover Programme Update
The Company previously announced that the Eagle workover rig, owned by Echo and its partners in the Santa Cruz Sur assets, had been redeployed from
Echo is now pleased to confirm that in addition to the successful operation described above, an initial portfolio of sixteen workovers, focussed on seeking to bring PDNP & 2P reserves intervals into production, has now been matured. Of this portfolio of potential projects, four initial opportunities (consisting of 3 well workovers to bring associated PDNP 1P reserves into production and one project targeting 2P reserves) are estimated to be capable of adding expected combined additional production of up to 4.8 MMscf/d of gas and 84 bopd (total combined additional production potential of 884 boepd). These 4 initial opportunities offer a combined estimated value of approximately US
CEO
"The addition of the important work in maturing the production enhancement opportunities recomfirms the flexibility and range of well-balanced risk-reward upside options contained within the Santa Cruz Sur portfolio. In addition to the existing revenue generating producing proved reserves, the combination of PDNP 1P and 2P production enhancement opportunities with exploration upside provides a diversified portfolio in a single set of assets at Santa Cruz Sur."
The Company will update on further developments when appropriate. A new presentation reviewing the Santa Cruz Sur opportunities will shortly be available on the Company website: www.echoenergyplc.com
The volumes included in this announcement are in accordance with SPE standards and the information contained in this announcement has been reviewed by
For further information, please contact:
|
via |
Patrick d'Ancona
|
+44 (0) 20 7390 0230 |
Cenkos Securities (Nominated Adviser)
|
+44 (0) 20 7397 8900 |
Shore Capital (Corporate Broker) |
+44 (0) 20 7408 4090 |
Note
The assignment of Echo's 70% non-operated participation in the Santa Cruz Sur licences is subject to the authorisation of the Executive Branch of
bbl(s) means barrel(s) of oil; bcf means billion cubic standard feet of gas; boe means barrels of oil equivalent; boepd means barrels of oil equivalent per day; MMboe means million barrels of oil equivalent; MMbbl means million barrels of oil; MMscf means million standard cubic feet of gas; MMscf/d means million standard cubic feet of gas per day; bopd means barrels of oil per day; and mmbtu means million British thermal units.
The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
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