REG - Echo Energy PLC - Operational Update re Enhancement Plan

Echo EnergyAnnouncement

25/07/2022 07:00

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RNS Number : 5757T  Echo Energy PLC  25 July 2022

25 July 2022

 

Echo Energy plc

("Echo" or the "Company")

 

Operational Update on the Production and Infrastructure Enhancement Plan

 

Echo Energy, the Latin American focused energy company, is pleased to provide
an operational update regarding progress in the execution of the Santa Cruz
Sur assets Production and Infrastructure Enhancement Plan previously announced
by the Company on 7 July 2022 (the "Plan").

 

As previously announced, the first operational priority under the Plan is to
upgrade the power generation capacity sufficient to sustain the elevated
production levels anticipated as possible under the plan, the Company is
therefore pleased to announce that a contract for the long-term provision of
gas-powered electricity generation units to the Joint Venture for installation
across the Cerro Molino Oeste, El Indio Oeste and Oceano fields has now been
signed.

 

Accordingly, equipment has now been mobilised to the field in Santa Cruz Sur
and installation is anticipated to take a month from commencement. The new
generation infrastructure consists of one unit of 1,375 Kilo Volt Amps (KVA)
capacity for the Cerro Molino Oeste field, one unit of 375 KVA capacity for
the El Indio Oeste field, and one unit of 375 KVA capacity to be installed in
the Oceano field.  The on-site installation and commission of all three units
will begin during the week commencing 25 July 2022, notwithstanding the winter
conditions currently being experienced at Santa Cruz Sur. The work will be
undertaken by Santa Cruz Sur Joint Venture staff.

 

El Indio Oeste will be installed first, followed by Oceano and then Cerro
Molino Oeste. These works will be carried out with the intention of minimising
any disruption to existing gas and oil production, although some temporary
impact is expected. Following these units' installation, additional power will
be available to support existing and future production levels. Although there
may be some increase to current production, these infrastructure upgrades are
in preparation for the recommissioning of shut-in wells using the Joint
Venture rig. Work has also commenced on upgrading this pulling rig in
anticipation of this upcoming set of operations.

 

The installation of the additional power generation capacity, alongside the
upgrading of the workover rig, represents a critical step in the delivery of
the Plan. The Company looks forward to continuing to update shareholders on
progress on these plans throughout this year.

 

A second set of planned infrastructure improvements will be focused on the
maintenance and optimisation of the compressors at Cerro Norte and Campo
Bremen to enable the increased volumes of associated gas to be processed and
then sold into the main gas export line. This operation is anticipated to take
approximately three months from commencement and will be carried out with the
intention of minimising any disruption to existing gas production, although
some temporary impact is expected.

 

For further information, please contact:

 

 Echo Energy                                via Vigo Communications

 Martin Hull, Chief Executive Officer

 Vigo Consulting (IR & 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

 Arden Partners plc (Corporate Broker)      +44 (0) 20 74614 5900

 Simon Johnson (Corporate Broking)

 John Llewellyn-Lloyd (Corporate Finance)

 

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. The information contained in this announcement
has been reviewed by Echo Energy's Vice President, Exploration, Dr. Julian
Bessa Msc, DPhil, MBA ,a Fellow of the Geological Society and President of the
Petroleum Exploration Society of Great Britain.

 

Certain of the information contained within this announcement is deemed by the
Company to constitute inside information as stipulated under The Market Abuse
Regulation (EU 596/2014) pursuant to the Market Abuse (Amendment) (EU Exit)
Regulations 2018. Upon the publication of this announcement via a Regulatory
Information Service ("RIS"), this inside information is now considered to be
in the public domain.

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