REG - Echo Energy PLC - Argentina Operational Update

Echo EnergyAnnouncement

30/05/2022 07:15

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RNS Number : 1596N  Echo Energy PLC  30 May 2022

30 May 2022

 

Echo Energy plc

("Echo" or "the Company")

 

Argentina Operational Update

 

Echo Energy, the Latin American focused upstream energy company, is pleased to
provide a operational update regarding the Company's producing Santa Cruz Sur
assets, onshore Argentina.

 

The Company confirms that daily gas production has materially increased in the
Oceano field, following a successful facilities maintenance and upgrading
programme focussed on improvements in efficiency, reliability and load
capacity of the gas facilities at Oceano, which delivers gas to residential
suppliers. As part of the Company's plan to increase production, the Oceano
field was temporarily shut-in in April 2022 to allow for maintenance and
upgrades to the compressor and associated infrastructure.

 

In Q1 2022, the Oceano field produced an average of 1.72 MMscf/d of gas (net
to Echo) and is now producing at an average rate of 2.63 MMscf/d of gas (net
to Echo) over the 12 days following the maintenance and upgrades. This
represents an increase of 53% in daily gas production at the Oceano field and
markedly exceeds the Company's expectations prior to the operations being
undertaken.

 

Following post-maintenance commissioning, total average daily gas production
(net to Echo) across the Santa Cruz Sur assets, for the 12 days prior to 21
May 2022, increased to 8.4 MMscf/d being a 14% increase over the average daily
gas production levels achieved in Q1 2022.

 

As previously announced, the Company has identified an extensive programme of
production enhancement opportunities across its portfolio of assets at Santa
Cruz Sur, including infrastructure and facility improvements, well
interventions and well workovers.

 

Martin Hull, Chief Executive Officer of Echo Energy, commented:

 

"The increase in production from the Oceano field is clearly encouraging and
is a further demonstration of the significant potential that we believe exists
within the Company's Santa Cruz Sur assets. We continue our focus, as cashflow
allows, on making targeted and cost effective investments to drive production
performance and improving revenues in an environment of sustained elevated
commodity prices. We remain committed to building value for our shareholders
and look forward to reporting further progress"

 

For further information, please contact:

 

 Echo Energy                            via Vigo Communications

 Martin Hull, Chief Executive Officer

 Vigo Communications (PR Advisor)       +44 (0) 20 7390 0230

 Patrick d'Ancona

 Chris McMahon

 Cenkos Securities (Nominated Adviser)  +44 (0) 20 7397 8900

 Ben Jeynes

 Katy Birkin

 Shore Capital (Corporate Broker)       +44 (0) 20 7408 4090

 Anita Ghanekar

 

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 Santa
Cruz's Province, which is part of the overall process of title transfer that
is proceeding as anticipated. MMscf/d means million standard cubic feet of gas
per day.

 

The information communicated within this announcement is deemed to constitute
inside information as stipulated under the UK version of the EU Market Abuse
Regulation (596/2014) which is part of UK law by virtue of the European Union
(Withdrawal) Act 2018, as amended and supplemented from time to time. Upon the
publication of this announcement, this inside information is now considered to
be in the public domain.

 

 

 

 

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