Proactiveinvestors United Kingdom Echo Energy PLC https://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom Echo Energy PLC RSS feed en Tue, 16 Jul 2019 11:35:54 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Echo Energy completes seismic survey ahead of Tapi Aike drilling ]]> https://www.proactiveinvestors.co.uk/companies/news/222392/echo-energy-completes-seismic-survey-ahead-of-tapi-aike-drilling-222392.html Echo Energy PLC (LON:ECHO) shares rose on Wednesday as the firm told investors it has completed a 3D seismic exploration survey at the Tapi Aike licence in Argentina.

The survey covered the ‘western cube’ of the project and data processing is now underway.

It follows previous seismic data acquisition and processing of the ‘eastern cube’ data now said to be nearing completion.

READ: Echo tipped for new upside as Tapi Aike takes spotlight

“The timely completion of seismic acquisition at Tapi Aike prior to the end of H1 2019 is a key operational milestone for the company and one which ensures that the pathway to drilling Tapi Aike remains on track - with spud currently anticipated to take place in Q4 2019,” Echo said in a statement.

Echo added that it is working closely with its Argentinian partner with a view to drilling ‘early in the window’ now that seismic acquisition is complete.

In a note to clients, analysts at SPAngel said: " Positive news from Echo and its partners as they continue to target an Argentinean drilling campaign later in the year."

In late morning trading, Echo Energy shares were 2% higher at 2.55p.

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Wed, 19 Jun 2019 07:23:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/222392/echo-energy-completes-seismic-survey-ahead-of-tapi-aike-drilling-222392.html
<![CDATA[News - Echo Energy tipped for new upside as Tapi Aike takes spotlight ]]> https://www.proactiveinvestors.co.uk/companies/news/221960/echo-energy-tipped-for-new-upside-as-tapi-aike-takes-spotlight-221960.html Echo Energy PLC (LON:ECHO) could be worth nearly 100% more than current levels as it advances the ‘company maker’ Tapi Aike exploration prospect in Argentina, that’s according to Shore Capital.

Analyst Craig Howie, in a note, highlighted that Echo is presently pressing ahead with an extensive 3D seismic programme as a precursor to a planned four well drill campaign, slated to start later this year.

The analyst has set a 5p per share asset valuation (risked NAV) for Echo, which compares to a current market price of 2.52p

READ: Echo Energy rejigs Argentina assets to focus solely on Tapi Aike

“Alongside potential M&A deals that continue to be evaluated, and Echo’s increasingly exciting presence in Bolivia, we believe that Tapi Aike will be a critical share price driver in the months ahead,” Howie said.

He added: “Our sum-of-the-parts valuation is driven by Tapi Aike and we see exciting times ahead for this flagship asset, where Echo now has a 19% working interest and drilling is on track to commence in late FY2019.

“We see strong scope for material upside beyond our prevailing 5p/share estimate as Echo further de-risks Tapi Aike with modern 3D seismic data, upgrades leads to prospect status and commences exploration drilling. We also highlight potentially exciting initiatives to expand the regional footprint through M&A.”

 

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Wed, 12 Jun 2019 09:41:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/221960/echo-energy-tipped-for-new-upside-as-tapi-aike-takes-spotlight-221960.html
<![CDATA[News - Echo Energy rejigs Argentina arrangements to focus solely on Tapi Aike project ]]> https://www.proactiveinvestors.co.uk/companies/news/220567/echo-energy-rejigs-argentina-arrangements-to-focus-solely-on-tapi-aike-project-220567.html Echo Energy Plc (LON:ECHO) shares shot higher on Monday as the Argentina oil and gas junior reshuffled its priorities and made new arrangements that will allow the acceleration of exploration at the Tapi Aike project.

The group has agreed with its Argentinean partner Compañía General de Combustibles (CGC) that Echo will cut short its participation in the Fracción C, Fracción D, Laguna Los Capones (CDL) group of projects.

That saves some US$11mln of upcoming capex as Echo won’t fund a 3D seismic programme and some US$2.5mln of future acquisition fees will no longer be payable to CGC. Additionally, US$2.06 of the company’s cash held by CGC for work across the CDL assets will now be released.

The attention is now focused solely on the Tapi Aike exploration project, which is seen as a potential ‘multi trillion cubic feet' gas project.

Echo’s decision to walk away from the CDL assets comes after disappointing well testing results - which confirmed sub-commercial discoveries - and a review of the project that concluded there is limited upside to the projects.

READ: Echo Energy “very excited” for rest of 2019

Its participation in the Tapi Aike has concurrently been restructured from the original arrangement, which would have seen the AIM-quoted firm hold 50% of the project and pay 65% of the costs.

Going forward, Echo will own a 19% stake in the asset and it will pay a proportionate 19% share of the project costs.

The CDL savings and the removal of the ‘cost carrying’ arrangement with CGC means that the funding barriers to advance Tapi Aike have reduced significantly for Echo.

It is now intended that the exploration of Tapi Aike will be accelerated.

Seismic exploration work at Tapi Aike continues as planned and Echo highlighted that initial results reinforce ‘the exciting prospectivity’ previously seen from 2D data.

The company expects to complete a seismic survey by the end of the first half, and it aims to begin drilling operations later in the year, with a fourth quarter spud anticipated.

New boss Hull sees a ‘turning point’

Echo Energy, meanwhile, also confirmed the appointment of Martin Hull as the company’s new chief executive.

"I strongly believe that this transaction marks a significant turning point for Echo Energy, providing a much firmer financial footing, nearer term drilling and clearer strategic focus on high reward exploration,” Hull said.

“The restructuring retains a potentially highly material stake in Tapi Aike, offering significant potential upside for equity investors, whilst substantially reducing our capital requirement and accelerating drilling. In addition to delivering the Tapi Aike exploration programme my team and I will now focus on new business development to expand our regional footprint."

In a note to clients, analysts at ‘house’ broker ShoreCapital commented: “With Echo continuing to press ahead with its seismic programme ahead of an exciting drilling campaign at Tapi Aike, we continue to highlight the considerable unrisked potential offered by this high impact project.”

In afternoon trading, shares in Echo Energy were nearly 24% higher at 3.12p.

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Mon, 20 May 2019 07:34:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/220567/echo-energy-rejigs-argentina-arrangements-to-focus-solely-on-tapi-aike-project-220567.html
<![CDATA[News - Echo Energy “very excited” for rest of 2019, with Tapi Aike in the spotlight ]]> https://www.proactiveinvestors.co.uk/companies/news/219536/echo-energy-very-excited-for-rest-of-2019-with-tapi-aike-in-the-spotlight-219536.html Echo Energy Plc (LON:ECHO) managing director Martin Hull has told investors that the South America focused explorer sees the remainder of 2019 as “very exciting” as it aims to advance the Tapi Aike project.

In its financial results statement, for the year to 31 December 2018, the company highlighted the acquisition and initial advancement of the asset, located in Argentina.

READ: Echo Energy completes one Tapi Aike seismic survey

It more recently kicked off a 3D seismic data acquisition programme at Tapi Aike, meanwhile, it has also worked to enhance the separate Fracción C, D and Laguna de Los Capones licences with well drilling and work-overs.

"Having secured the world class Tapi Aike asset as part of an extensive acreage position in South America, Echo delivered on an ambitious work programme with four exploration wells drilled and three workovers completed safely and within budget,” Marin Hull said.

Ever cost-conscious, negotiations for the Tapi Aike seismic campaign translated into a significant discount, securing the acquisition of the full 1,200 square kilometre seismic commitment which will take us into the next stage of Echo's development.

He added: “2019 looks very exciting as we work towards drilling Tapi Aike, evaluating Bolivia and continuing to maximise returns across the portfolio."

Echo, a non-operating producer, reported US$8.8mln of revenue for 2018m and it realised US$600,000 as a positive gross margin on operations. But, disappointing well results led to a US$15.2mln impairment charge against assets.

The company reported a US$24.4mln loss before tax, and, it ended December with US$15.6mln of cash.

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Thu, 02 May 2019 07:39:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/219536/echo-energy-very-excited-for-rest-of-2019-with-tapi-aike-in-the-spotlight-219536.html
<![CDATA[News - Echo Energy seeing solid production from Argentina ]]> https://www.proactiveinvestors.co.uk/companies/news/218256/echo-energy-seeing-solid-production-from-argentina-218256.html In March, the Argentina-focused oil and gas firm said that output from the Fracción C and Fracción D licences amounted to 315,825 barrels oil equivalent, which translates to an average rate of 865 boe per day.

Around 31% of its production was oil and it saw an average sales price of US$63.80 per barrel.

Produced gas, meanwhile, was sold in the Argentinian market at a price of US$3.99 per million British thermal unit.

Echo is considering how to maximise potential returns from any new work-over programmes at the Fracción D’s Canadon Salto field.

No new work-overs are due to get underway before the end of the first quarter of 2019.

Tapi Aike

A 3D seismic programme is underway at Tapi Aike’s eastern cube on Tapi Aike.

Initial indications suggest very good data quality.

The equipment will now mobilise to the western cube and start acquisition once all equipment is on site and surveys have been completed. 

Eastern cube (Chiripa Oeste) covers 414 sq km and the western cube (Travesia de Arriba) covers 790 sq km.

Seismic results will underpin the Tapi Aike drilling campaign.

Joint evaluation in Bolivia

Away from Argentina, Echo has an involvement in the neighbouring Latin American country of Bolivia, where it is currently partnered in a joint evaluation agreement with Pluspetrol for the Huayco block in the prolific Tarija basin.

Tarija is believed to be home to 85% of Bolivia’s gas reserves.

Echo also recently agreed a new agreement in Bolivia for the onshore Rio Salado Block.

Inflexion points Oil and gas prices moving positively Argentina has been a difficult place to explore but global oil and gas prices have moved in the sector's favour even if the economic situation in the country remain uncertain. First oil sales from its Argentine blocks were priced at more than US$70 per barrel or close to a three-year high for Brent crude. Blue Sky

In a note to clients, analysts at joint house’broker Shore Capital said: “Echo’s unaudited net cash position as at 31 December 2018 was approximately US$15.6mln and, with Echo continuing to press ahead with its seismic programme ahead of an exciting drilling campaign at Tapi Aike, we continue to highlight the company’s active work programme at this high impact project, where we see considerable unrisked potential.”

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Tue, 09 Apr 2019 14:31:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/218256/echo-energy-seeing-solid-production-from-argentina-218256.html
<![CDATA[News - Echo Energy updates on Argentina production ahead of financial results ]]> https://www.proactiveinvestors.co.uk/companies/news/217294/echo-energy-updates-on-argentina-production-ahead-of-financial-results-217294.html Echo Energy PLC (LON:ECHO) shares rose on Wednesday morning after it provided a production update ahead of 2018’s financial results statement, due at the end of April.

The Argentina-focused oil and gas firm said that output from the Fracción C and Fracción D licences amounted to 315,825 barrels oil equivalent, which translates to an average rate of 865 boe per day.

READ: Echo Energy completes one Tapi Aike seismic survey

It noted that around 31% of its production was oil and it saw an average sales price of US$63.80 per barrel. Produced gas, meanwhile, was sold in the Argentinian market at a price of US$3.99 per million British thermal unit.

Echo told investors that it continues to work with its partner to determine the optimal use of investment capital to maximise potential returns from any new work-over programmes at the Fracción D’s Canadon Salto field.

No new work-overs are due to get underway before the end of the first quarter of 2019.

The company said it expects to give an update on its plans for Fracción C & Fracción D licences in due course.

In a note to clients, analysts at joint ‘house’ broker Shore Capital said “we continue to highlight the company’s active work programme at this high impact project, where we see considerable unrisked potential.”

In late morning trading, shares in Echo Energy were 0.8% higher at 3.35p.

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Wed, 27 Mar 2019 07:26:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/217294/echo-energy-updates-on-argentina-production-ahead-of-financial-results-217294.html
<![CDATA[News - Echo Energy completes one Tapi Aike seismic survey ]]> https://www.proactiveinvestors.co.uk/companies/news/215282/echo-energy-completes-one-tapi-aike-seismic-survey-215282.html Echo Energy Plc (LON:ECHO) has told investors that a 3D seismic survey has been completed for the eastern portion of the Tapi Aike project onshore Argentina.

Equipment is now being mobilised to the western portion, in order to complete the programme.

The eastern programme covers some 414 square kilometres while the western portion will cover some 790 square kilometres. Date from the whole Tapi Aike survey programme will support plans for future drilling.

READ: Echo Energy to walk away from EMS-1001 well

“Initial indications suggest very good data quality,” Echo said in a statement.

Elsewhere in Argentina, at the Fracción C licence, Echo said it is currently using results of mechanical stimulation at the EMS-1001 well to refine a mechanical stimulation design for the ELM-1004 well.

The analysis will  enable a final decision to be taken on whether to proceed with the stimulation, the company said.

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Tue, 26 Feb 2019 07:27:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/215282/echo-energy-completes-one-tapi-aike-seismic-survey-215282.html
<![CDATA[News - Echo Energy to walk away from EMS-1001 well location after disappointing test ]]> https://www.proactiveinvestors.co.uk/companies/news/214422/echo-energy-to-walk-away-from-ems-1001-well-location-after-disappointing-test-214422.html Echo Energy PLC (LON:ECHO) told investors it has completed the stimulation programme for the EMS-1001 well at the Fracción C licence, onshore Argentina.

Initial results indicate that the EMS-1001 location is not commercial, and, no further testing is planned.

The well was mechanically stimulated through a 4m perforated interval in the Tobifera formation.

READ: Echo Energy continues to progress Argentina assets

After the completion of clean-up operations, the well produced only a mix of stimulation fluid and water, at an average flow rate of 465 barrels per day, and, no interpreted hydrocarbons were present.

Echo said the results suggest the interpreted hydrocarbons present in the section are not mobile.

“The disappointing results of the EMS 1001 stimulation have demonstrated the challenges of working in a new volcaniclastic play,” said Martin Hull, Echo managing director.

“As we continue with our very active 2019 work programme we are now focused on more typical reservoirs, without volcaniclastics, in the West of the basin (Tapi Aike) and the Springhill in our C,D & L licences in the East.

“We have a heavy work programme at Tapi Aike this year, with seismic acquisition currently ongoing, leading to an exciting drilling campaign.”

In a note to clients, analysts at joint ‘house’ broker Shore Capital said: “Whilst we agree that this is a disappointing result, reflecting the challenges of working in a complex volcaniclastic play, we highlight the fact that Echo will now continue with its very active 2019 work programme, focusing on more conventional reservoirs in the west of the basin at Tapi Aike, and in the east on the “C”, “D” and “L” licences.

“We see particularly significant potential at the high impact Tapi Aike project, where seismic data acquisition is ongoing prior to commencement of an exciting drilling campaign.

“We therefore continue to highlight Echo’s active work programme across its portfolio in Argentina, where we see considerable unrisked potential.”

In afternoon trading, shares in Echo Energy were down 34.50p at 5.60p.

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Tue, 12 Feb 2019 07:22:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/214422/echo-energy-to-walk-away-from-ems-1001-well-location-after-disappointing-test-214422.html
<![CDATA[News - Echo Energy will shortly shoot seismic on Tapi Aike, chief executive moves to non-exec role ]]> https://www.proactiveinvestors.co.uk/companies/news/210933/echo-energy-will-shortly-shoot-seismic-on-tapi-aike-chief-executive-moves-to-non-exec-role-210933.html Echo Energy Plc (LON:ECHO) has mobilised equipment that will allow it to acquire 1,200 square kilometres of three-dimensional seismic data on the Tapi Aike exploration acreage in Neuquén province, Argentina.

The seismic programme will last four months and will commence once all the equipment has arrived on site and parameter testing is completed early in 2019.

READ: No let up in pace as Echo Energy pushes ahead with Argentina projects

Echo’s view is that Tapi Aike could contain several trillion cubic feet (tcf) of gas. Following the seismic programme, the plan is to undertake a four well exploration drilling programme, with each well likely to cost between US$2mln and US$4mln net to Echo.

Meanwhile, commencement of the stimulation of the EMS-1001 well, drilled in June 2018 on the Fracción C licence, onshore Argentina, is now scheduled to commence in approximately four weeks, following minor delays in the releasing of equipment from a third party contract.

And separately, it’s been announced that chief executive Fiona Macaulay is to step up into a non-executive role and that Martin Hull, Echo’s chief financial officer has been appointed managing director.

"It has been a huge pleasure to work with Fiona in these early stages of Echo's development and I would like to thank her for her significant contribution in securing our Argentinian portfolio, drilling four wells, completing various workovers and in strengthening and deepening the executive team,” said chairman James Parsons.

“At this stage in her career Fiona wishes to develop a non-executive portfolio and we look forward to having the benefit of her continuing input as a fellow director of the company.”

 

 

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Tue, 11 Dec 2018 07:48:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/210933/echo-energy-will-shortly-shoot-seismic-on-tapi-aike-chief-executive-moves-to-non-exec-role-210933.html
<![CDATA[News - Echo Energy looks forward to December start for Argentina well stimulation ]]> https://www.proactiveinvestors.co.uk/companies/news/209258/echo-energy-looks-forward-to-december-start-for-argentina-well-stimulation-209258.html Echo Energy Plc (LON:ECHO) told investors it expects to kick off a two-well stimulation programme in Argentina within the next three to four weeks.

The company earlier this year drilled four wells across its onshore Argentina portfolio, within the Fracción C licence, two of which were seen as successful.

READ: No let up in pace as Echo pushes ahead with Argentina projects

Notably, one well was thought to be particularly material following the analysis of wireline log data.

Both will now be followed up by a programme of stimulation, followed by well testing.

Equipment required to stimulate the wells is now expected to become available at the beginning of December.

Stable production continues from Fracción D

Echo also today updated investors on the production operations, where it has seen “stable production levels”, with three wells contributing some 876 barrels of oil per day in the year so far (up to 12 November).

It comes as the result of an earlier programme of well ‘workovers’ and Echo told investors that it has now identified a number of additional existing wells that are new workover candidates.

The next phase of well interventions is expected to take place starting in the first quarter of 2019.

Additionally, Echo noted that it is evaluating the potential for gas development projects within the Fracción D licence, as a means to unlock some of the asset’s resources.

Tapi Aike’s upcoming seismic will lead to 2019 wells

In the Tapi Aike area, meanwhile, Echo now intends to start an exploration drilling programme during the second half of 2019, preceded by a 3D seismic exploration programme due to get underway in December 2018.

“The company believes that the Tapi Aike licence offers a compelling proposition with a likely 4 well drilling programme targeting multi Tcf potential with each well estimated to cost between $2M and $5M net to Echo,” it said in the stock market statement.

At the same time, Echo highlighted that it continues to actively evaluate a range of potential opportunities for the development of its portfolio in the region.

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Thu, 15 Nov 2018 07:57:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/209258/echo-energy-looks-forward-to-december-start-for-argentina-well-stimulation-209258.html
<![CDATA[News - Echo Energy appoints former Shell vice-president as non-executive director ]]> https://www.proactiveinvestors.co.uk/companies/news/208396/echo-energy-appoints-former-shell-vice-president-as-non-executive-director-208396.html Echo Energy Plc (LON:ECHO) has appointed Dr Gavin Graham, a former vice-president at oil major Royal Dutch Shell PLC (LON:RDSA), as an independent non-executive director with immediate effect.

Graham previously served as Shell’s vice president for new business & commercial in the Middle East, Caspian & South Asia before becoming executive vice president for business development & technical services, working in Malaysia, Mexico and the UK continental shelf (UKCS) for FTSE 250 firm Petrofac Limited (LON:PFC).

READ: Echo Energy achieves significant production boost in Argentina from intervention work

Echo added that Graham was currently serving as the chief executive of LOTOS Upstream, part of the Polish state oil firm Grupa LOTOS, which focuses on assets in the North Sea, Poland, and Lithuania.

In early trading, Echo shares were steady around 8.3p.

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Fri, 02 Nov 2018 08:58:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/208396/echo-energy-appoints-former-shell-vice-president-as-non-executive-director-208396.html
<![CDATA[News - No let up in pace as Echo Energy pushes ahead with Argentina projects ]]> https://www.proactiveinvestors.co.uk/companies/news/207763/no-let-up-in-pace-as-echo-energy-pushes-ahead-with-argentina-projects-207763.html Echo Energy PLC (LON:ECHO) has a 50% working interest in four onshore blocks in Argentina.

Of these, Fraccion C, Fraccion D, and Laguna De Los Capones, either have previously or are in production while the fourth is an exploration permit for the hugely promising Tapi Aike block.

READ: Echo Energy puts CFO Martin Hull on board

Echo recently completed a four-well workover campaign at Fraccion D, while earlier in the year four exploration wells were drilled back-to-back.

Of these, three were in Fraccion C and one in Fraccion D.

Two of these, EMS-1001 and ELM-1004, will be subjected to mechanical stimulation tests by the end of the year.

The workovers on the four wells at the Cañadon Salto Field in Fracción D, meanwhile, boosted output to 115 barrels per day from 5 barrels.

Echo will now monitor the performance of the wells before making a decision on a full-scale remediation project across the Cañadon Salto field that might potentially see production levels of over 400 barrels oil per day.

Prior to the workovers, production across all of the three CDL licences (Fracción C, Fracción D and Laguna De Los Capones) was around 500 barrels per day excluding gas.

Elsewhere, a contractor has also been appointed to shoot 3D seismic over Tapi Aike this year and Fraccion C and D in 2019 to identify new drill targets.

Results are due in the second half of 2019.

Seismic planned

In September, Fiona MacAulay, chief executive, said:  “We are currently preparing for the 3D seismic shoot on Tapi Aike which we expect to commence this year.

The seismic acquisition programme should take approximately 4-5 months, with processed results expected in H2 2019.

“Once this new data has been integrated into our current dataset, and the identification and hi-grading of prospects has taken place, we would be anticipating to be drill ready at Tapi Aike by late 2019.”

Shore Capital, joint house broker, said the very active work offers excellent scope for reserves and production growth.

Echo though is still at a very stage of development and at the half year the production operations generated some US$2.1mln of oil sales and US$2.1mln of gas

At the end of June, the company had £26.1mln of cash.

Oil and gas prices moving positively

Argentina has been a difficult place to explore but global oil and gas prices have moved in the sector's favour even if the economic situation in the country remain uncertain.

First oil sales from its Argentine blocks were priced at more than US$70 per barrel or close to a three-year high for Brent crude.

Joint evaluation in Bolivia

Away from Argentina, Echo has an involvement in the neighbouring Latin American country of Bolivia, where it is currently partnered in a joint evaluation agreement with Pluspetrol for the Huayco block in the prolific Tarija basin.

Tarija is believed to be home to 85% of Bolivia’s gas reserves.

Echo also recently agreed a new agreement in Bolivia for the onshore Rio Salado Block.

A technical evaluation agreement (TEA) was signed with state-owned oil and gas firm YPFB that detailed the work commitments for Echo to undertake at Rio Salado.

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Wed, 24 Oct 2018 11:52:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/207763/no-let-up-in-pace-as-echo-energy-pushes-ahead-with-argentina-projects-207763.html
<![CDATA[News - Echo Energy achieves significant production boost in Argentina from intervention work ]]> https://www.proactiveinvestors.co.uk/companies/news/207535/echo-energy-achieves-significant-production-boost-in-argentina-from-intervention-work-207535.html Remedial work by Echo Energy Plc (LON:ECHO) at the Cañadon Salto Field in the Fracción D licence in Argentina has seen a major boost to production.

Pilot interventions were carried out on four wells, which boosted output to 115 barrels per day from 5 barrels.

READ: Echo Energy continues to progress​ Argentina wells, signs new deal in Bolivia

The first well to be commissioned, CSo-96, saw production rise to 60 barrels per day from 12 barrels and is a good indicator of the potential capacity of these wells, Echo added.

Prior to the interventions, production across the CDL licences (Fracción C, Fracción D and Laguna De Los Capones) was around 500 barrels per day excluding gas.

Echo will now monitor the pilot performance before making a decision on a full-scale remediation project across the field, which could potentially see production levels of over 400 barrels oil per day.

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Mon, 22 Oct 2018 07:57:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/207535/echo-energy-achieves-significant-production-boost-in-argentina-from-intervention-work-207535.html
<![CDATA[News - Echo Energy continues to progress Argentina wells, signs new deal in Bolivia ]]> https://www.proactiveinvestors.co.uk/companies/news/207042/echo-energy-continues-to-progress-argentina-wells-signs-new-deal-in-bolivia-207042.html Echo Energy Plc (LON:ECHO) told investors that it has confirmed that its third Argentinian well will be suitable for mechanical stimulation, and, it will now move on to the next stage in operations.

The company, in a statement, updated on the EMS-1001 well at the Fraccion C – which was drilled into the Jurassic Tobifera formation, previously described as “material and transformational”.

Latest operations saw the company perforate and perform inflow tests on two intervals, to ensure there’s no mobile formation water presence ahead of rigless mechanical stimulation work.

READ: Echo Energy completes Argentina well workovers

The drill rig has now been demobilised, meanwhile, design and planning are being finalised for the stimulation work. The company expects to start the stimulation of both the EMS-1001 and ELM-1004 wells before the end of this year.

Separately, Echo also announced that it has signed a new agreement in Bolivia for the onshore Rio Salado Block.

A technical evaluation agreement (TEA) was signed between Echo Energy Plc and state-owned oil and gas firm YPFB (Yacimientos Petrolíferos Fiscales Bolivianos).

It details the work commitments for Echo to undertake at Rio Salado, including the interpretation and integration of 2D seismic data with a view to better understand deep structures which have been mapped as crossing between the Rio Salado and Huayco blocks.

Echo highlighted that it has estimated the whole structure at around 1.75 trillion cubic feet of gas in place.

At the end of the TEA period, Echo will have the right to negotiate a longer-term contract with YPFB.

The company also said that it will continue to advance its joint venture at Huayco where, in the past year, it has completed a full reprocessing of 250 square kilometres of 3D seismic data.

'We are delighted to have signed the TEA with YPFB for the Rio Salado block, as well as extended our agreement with Pluspetrol regarding Huayco, given the potential we see running across both blocks,” said Fiona MacAulay, Echo chief executive.

“Much technical work has been done and we are pleased that by extending our agreement with Pluspetrol we have given ourselves time to further analyse what we still believe to be exciting potential as we evaluate newly available industry data across the licence areas.”

Echo noted that it does not yet hold an interest in Rio Salado, and any acquisition of a stake in the exploration venture remains contingent upon agreeing to commercial terms in the future.

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Mon, 15 Oct 2018 07:34:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/207042/echo-energy-continues-to-progress-argentina-wells-signs-new-deal-in-bolivia-207042.html
<![CDATA[News - Echo Energy completes Argentina well workovers ]]> https://www.proactiveinvestors.co.uk/companies/news/206267/echo-energy-completes-argentina-well-workovers-206267.html Echo Energy Plc (LON:ECHO) has told investors that its programme of well interventions has now been completed for four wells at the Fracción D project.

Commissioning work is now underway, and, the first of them has now been connected for production. The CSo-96 well is now flowing into storage tanks.

The company said it will update on production volumes once all four wells have been commissioned for production and rates have stabilised.

READ: Echo Energy to keep up pace through rest of 2018

"I am very pleased to announce the successful completion of our previously announced well intervention activity, and that the first well in the series has already been hooked up to the field facilities and is contributing to our production,” said Fiona MacAulay, Echo chief executive.

“The remaining wells in the programme are in the final process of commissioning and are expected to come online in the coming month.”

EMS-1001 testing and Tapi Aike seismic

Elsewhere, the company has moved on to the EMS-1001 well location, where a remedial cement job has been completed, and, two zones have been selected for initial flow testing.

The company noted that any further operations here will be conducted in future via rigless operations.

At the Tapi Aike exploration project, the company highlighted that seismic crews and equipment are now scheduled to be on location in the first two weeks of December.

The seismic programme is designed to capture 1,200 square kilometres of data, and, it is seen as critical in the planning for future high impact exploration wells.

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Wed, 03 Oct 2018 07:48:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/206267/echo-energy-completes-argentina-well-workovers-206267.html
<![CDATA[News - Echo Energy puts CFO Martin Hull on board ]]> https://www.proactiveinvestors.co.uk/companies/news/206154/echo-energy-puts-cfo-martin-hull-on-board-206154.html Echo Energy Plc (LON:ECHO) today notified investors of a new board appointment, with the exploration group’s existing chief financial officer Martin Hull taking a seat with immediate effect.

Hull joined the company in August from Rothschild & Sons in London where he led the global energy team. He has some 18 years’ experience in oil & gas investment banking.

READ: Echo Energy to keep up pace through rest of 2018

Notably, he previously advised on numerous transactions across the upstream sector, including equity and debt transactions at both corporate and asset level.

"I'm delighted to welcome Martin to the Board. Since joining Echo in August 2018 Martin's wealth and contacts throughout the sector have already proven invaluable to the company and the board looks forward to continuing to work closely with Martin at this pivotal time for the company," said Fiona MacAulay, Echo chief executive.

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Tue, 02 Oct 2018 07:25:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/206154/echo-energy-puts-cfo-martin-hull-on-board-206154.html
<![CDATA[News - Echo Energy to keep up pace through rest of 2018 ]]> https://www.proactiveinvestors.co.uk/companies/news/204705/echo-energy-to-keep-up-pace-through-rest-of-2018-204705.html Echo Energy Plc (LON:ECHO) chief executive Fiona MacAulay has told investors she expects the level of activity seen in the first half of the year to continue throughout the rest of the year.

In the first half, Echo completed its farm-in deal to secure assets in Argentina and quickly got to work.

It completed a three-well workover campaign in the Fraccion D, ahead of schedule and under budget, before moving on to a programme of new wells.

Four wells were drilled back-to-back, followed by an ongoing testing programme.

READ: Echo Energy set for new seismic programme, starting at Tapi Aike

Looking to the upcoming schedule, MacAulay said: “The test rig is currently in the CDL licence area completing the testing programme for the wells drilled during the exploration campaign and is also engaged in a pilot project of workovers in the Cañadon Salto Field to reinstate or increase production in four selected wells.

“We are currently preparing for the 3D seismic shoot on Tapi Aike which we expect to commence this year. The seismic acquisition programme should take approximately 4-5 months, with processed results expected in H2 2019.

“Once this new data has been integrated into our current dataset, and the identification and hi-grading of prospects has taken place, we would be anticipating to be drill ready at Tapi Aike by late 2019.”

Production operations generated some US$2.1mln of oil sales and US$2.1mln of gas sales in the first half, while at the end of June the company had £26.1mln of cash.

The company reported a £4.2mln loss for the period, which also saw it mark £2.5mln of admin costs and £2mln of financing expenses. 

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Wed, 12 Sep 2018 07:28:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/204705/echo-energy-to-keep-up-pace-through-rest-of-2018-204705.html
<![CDATA[News - Echo Energy set for new seismic programme, starting at Tapi Aike ]]> https://www.proactiveinvestors.co.uk/companies/news/204403/echo-energy-set-for-new-seismic-programme-starting-at-tapi-aike-204403.html Echo Energy PLC (LON:ECHO) has signed up a contractor for a 3D seismic programme across its assets in Argentina, starting with the ‘high impact, frontier scale’ Tapi Aike exploration area.

The programme is due to get underway at Tapi Aike in November, to be followed by the Fraccíon C and Fraccíon D areas and it is scheduled to complete in the second quarter of 2019.

READ: Echo Energy picks up new Bolivia project

At Tapi Aike, some 41 exploration leads have already been identified, typically each is presently estimated between 50bn and 600bn cubic feet of potential gas resources – with a total of 22 trillion cubic feet estimated in the ‘high case’ across the project’s whole exploration inventory.

Tapi Aike has previously been assessed by 2D seismic, and, three independent exploration plays have been observed in the existing data.

New 3D seismic will be shot over 1,200 square kilometres, specifically designed to de-risk four possible exploration well locations.

"We are very pleased to have been able to finalise the contract award for seismic acquisition with UGA Seismic SA, a renowned Argentinian operator and part of the South American Seismic group of companies,” said Fiona MacAulay, Echo chief executive.

“The negotiation of the competitively priced contract has provided us with significant cost savings against our originally forecast budget and means that we will be able to shoot the entire committed seismic in one of our most exciting licence areas over the next few months.

“We look forward to updating our shareholders further as the programme progresses."

In late afternoon trading, Echo Energy shares were 0.8% lower at 12.55p.

In a note to clients, analysts at 'house' broker Shore Capital commented: "We are pleased to see signature of this competitively-priced seismic contract confirmed today and, with a very active work programme underway across the portfolio in Argentina, including in the shorter term planned stimulation of the ELM-1004 well and testing of EMS-1001, we look forward to further updates as activities progress."

 -- Adds share price, analyst comment --

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Fri, 07 Sep 2018 07:22:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/204403/echo-energy-set-for-new-seismic-programme-starting-at-tapi-aike-204403.html
<![CDATA[News - Echo Energy picks up new Bolivia project, deal done over Argentinian Peso ]]> https://www.proactiveinvestors.co.uk/companies/news/203951/echo-energy-picks-up-new-bolivia-project-deal-done-over-argentinian-peso-203951.html Echo Energy PLC (LON:ECHO) has revealed a deal that sees the explorer potentially take up a new project, located onshore Bolivia.

It has signed a letter of intent (LOI) for a one year technical evaluation of the Rio Salado licence area.

The deal is with state-owned YPFB (Yacimientos Petrolíferos Fiscales Bolivianos) and it gives Echo the right to negotiate contract terms for the project at the end of the evaluation period.

WATCH:  Echo Energy 'very encouraged' by recent Argentina drilling

Echo explained that the evaluation will include the interpretation and integration of 2D seismic, acquired in 2015 and 2016, which the company said will be ‘invaluable’ in the definition of deep multi-tcf structure mapped across the Rio Salado and Huayco blocks.

“We are delighted to have signed an LOI relating to a new Technical Evaluation Agreement which would secure a further period of time to evaluate the prospectivity of this licence area, incorporating additional 2D seismic data not previously available,” said Fiona MacAulay, Echo chief executive

“During the next 12 months the company will be in a position both to extend its understanding of the deeper structure and also to incorporate the results of the two important wells currently drilling in the area.”

Dollar over Pesos

Echo also told investors that in Argentina, it has agreed a deal with partner CGC (Compañía General de Combustibles S.A) that will see the company receive US dollars for all sales of gas instead of the Argentine Pesos.

The company detailed that gas sales remain denominated in US dollars but were previously settled in Pesos. All oil sales are denominated in US dollars - exports are settled in US dollars, while domestic sales are received in Pesos.

It also highlighted that, in August, the company sold approximately 71mln cubic feet of gas into the Argentinian market, while a further 24mln cubic feet was utilised for fuel and power.

The average price across Echo’s customer base remained above US$4.20 per million British thermal unit (mmbtu) through to July 2018.

It said 9,450 barrels of oil export cargo is waiting to be loaded at the Punta Loyola terminal, which follows a 6,400 barrel domestic oil sale which was completed during August. Receipts for the combined sales are expected to be around US$1mln.

MacAulay added: “We are very pleased that the strong market for oil exports continues in the region and that receipts in US$ are particularly positive for further reducing the exposure of the company to the current volatility of the Argentinian Peso.”

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Fri, 31 Aug 2018 07:55:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/203951/echo-energy-picks-up-new-bolivia-project-deal-done-over-argentinian-peso-203951.html
<![CDATA[News - Echo Energy well test disappoints, prepares work-over programme ]]> https://www.proactiveinvestors.co.uk/companies/news/203663/echo-energy-well-test-disappoints-prepares-work-over-programme-203663.html Echo Energy PLC (LON:ECHO) shares were on the back foot through Tuesday morning’s dealing after disappointing news from its well testing in Argentina.

Test results from the CSo-2001(d) well, within the Fracción D asset onshore Argentina, indicate a significant pressure depletion across this western flank of the field.

The pressure depletion is believed to be the result of long term production from the adjacent Springhill formation, and, the company said the gas in the underlying Tobifera formation will likely be insufficient to contribute economically to the Fraccíon D gas project.

It doesn’t impact the eastern flank, which through the testing and monitoring of the CSo-85 well remains economically viable.

Echo shares dropped 2.95p or 20.85%, changing hands at 11.2p.

READ: Echo Energy hit “significant hydrocarbons” in EMS-1001 exploration well

"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 Fracción 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.”

Shore Capital analyst Craig Howie, meanwhile, added: “We therefore look forward to further updates as activities progress - including, in the shorter term and at this relatively early stage of testing operations, progress on pump installation on CSo-80, stimulation of the ELM-1004 well and testing of EMS-1001.”

Data from the wells will support future planning for infrastructure and development projects.

The company also told investors that it will now advance a programme of work-overs, following the success of the CSo-80 well earlier this year, with the Quintana-1 rig remaining in the field for the next six weeks.

Additionally, Echo continues to prepare for the testing of the important EMS-1001 well, a potential new discovery which saw a significant (up to 500 metres) column with hydrocarbon saturations.

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Tue, 28 Aug 2018 07:24:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/203663/echo-energy-well-test-disappoints-prepares-work-over-programme-203663.html
<![CDATA[News - Echo Energy looks to stimulation options to remedy ELM-1004 well ]]> https://www.proactiveinvestors.co.uk/companies/news/202717/echo-energy-looks-to-stimulation-options-to-remedy-elm-1004-well-202717.html Echo Energy PLC (LON:ECHO) told investors that it is now considering stimulation options for the ELM-1004 well, at the Fracción C project in Argentina, after the first testing operation in its programme was compromised.

The company, in a stock market statement, said that the operator has found it challenging to completely isolate all of the well’s interpreted gas-bearing zones.

It was likely due to the breakdown of cement behind the production casing during an acid stimulation designed to remove drilling formation damage, the company added.

READ: Echo Energy encounters gas in fourth Argentina exploration well

Gas was produced to surface, with the isolation of 8 metres of pay (Echo previously encountered gas shows over 40 metres and saw 14.5 metres of net pay in logs) though flows to date were not sufficient for sustainable production.

The company is now preparing to move on to the next well test, which will be on the CSo‑2001(d) in the Fracción D area.

"Establishing dry gas production to surface in this intial phase of testing on the ELM-1004 well is significant and encouraging for the Estancia La Maggie accumulation,” said Fiona MacAulay, Echo chief executive.

“Having now isolated the upper zone of the well, a further rig-less stimulation can now be planned and completed without the testing rig on site and the rig will therefore shortly be moving to Fracción D to commence testing operations on the CSo-2001(d) well."

CSo-2001(d) was the fourth and well in the recently completed drill campaign. It was drilled down to a depth of 1,511 metres and it encountered the targeted Upper Jurassic Tobifera formation, with observations of extensive gas and light hydrocarbon shows.

Specifically, Echo highlighted that the measured 60 metres of gas shows through the Upper Tobífera – readings peaking at 168,000 parts per million, with full distribution of C1 to C5 hydrocarbons.

Wireline logging has indicated around 30 metres of net gas pay in the well, which it said is in the “upper end of the range” used in previously conducted contingent and prospective resource estimations (which were together seen at around 38bn cubic feet of gas).

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Mon, 13 Aug 2018 07:32:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/202717/echo-energy-looks-to-stimulation-options-to-remedy-elm-1004-well-202717.html
<![CDATA[Media files - Echo Energy's VP of Exploration 'very encouraged' by recent Argentina drilling ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/9959/echo-energy-s-vp-of-exploration-very-encouraged-by-recent-argentina-drilling-9959.html Thu, 26 Jul 2018 08:13:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/9959/echo-energy-s-vp-of-exploration-very-encouraged-by-recent-argentina-drilling-9959.html <![CDATA[Media files - Echo Energy's Fiona MacAulay delighted with Argentina exploration programme ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/9834/echo-energy-s-fiona-macaulay-delighted-with-argentina-exploration-programme-9834.html Thu, 12 Jul 2018 13:01:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/9834/echo-energy-s-fiona-macaulay-delighted-with-argentina-exploration-programme-9834.html <![CDATA[News - Echo Energy encounters gas in fourth Argentina exploration well ]]> https://www.proactiveinvestors.co.uk/companies/news/200339/echo-energy-encounters-gas-in-fourth-argentina-exploration-well-200339.html Echo Energy PLC (LON:ECHO) rose on Monday as it told investors that the fourth and final well in the current Argentina drilling campaign has encountered a ‘notable gas column’.

The well, referred to as CSo-2001(d), is located within the Fracción D project area. It was drilled down to a depth of 1,511 metres and it encountered the targeted Upper Jurassic Tobifera formation, with observations of extensive gas and light hydrocarbon shows.

WATCH: Echo Energy's Fiona MacAulay delighted with Argentina exploration programme

Specifically, Echo highlighted that the measured 60 metres of gas shows through the Upper Tobífera – readings peaking at 168,000 parts per million, with full distribution of C1 to C5 hydrocarbons.

Wireline logging has indicated around 30 metres of net gas pay in the well, which it said is in the “upper end of the range” used in previously conducted contingent and prospective resource estimations (which were together seen at around 38bn cubic feet of gas).

Production casing is now being set, ahead of a planned testing programme which will utilise a separate rig that’s due to come under contract for Echo’s assets this week.

"I am delighted that our fourth well in the current drilling campaign has again successfully interpreted a notable gas column in the Tobifera,” said Fiona MacAulay, Echo chief executive.

“With the Quintana 01 completion and testing rig mobilising to the area this week we will be able to test this interval within the forthcoming testing sequence, enabling an early decision to be made on monetisation options in Fracción D.

“We are now looking forward to commencement of testing on the ELM 1004 well which will be the first well to be tested in this programme."

In early afternoon trading, Eccho Energy shares were 1.1% higher at 18.1p.

 -- Adds share price --

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Mon, 09 Jul 2018 08:01:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/200339/echo-energy-encounters-gas-in-fourth-argentina-exploration-well-200339.html
<![CDATA[News - Echo Energy readies for Argentina well testing programme ]]> https://www.proactiveinvestors.co.uk/companies/news/200267/echo-energy-readies-for-argentina-well-testing-programme-200267.html Echo Energy Plc (LON:ECHO) told investors that the testing rig has now been mobilised for a hotly anticipated programme planned for the group’s newly drilled wells in Argentina.

First, the rig is being moved to the ELM-1004 well (drilled and suspended in May) where it will spend between two and three weeks of testing.

It will subsequently move on test the other three new wells drilled during the 2018 campaign.

READ: Echo Energy kicks off final well in Argentina campaign

The order of the test programme has yet to be determined because the test design for the most recent well, EMS-1001, which was said to have encountered a potentially significant oil column, has yet to be completed.

Whilst the rig is under contract, the company is considering opening up and recompleting existing wells, at both the Estancia La Maggie are of Fracción C and the Fracción D asset.

“The company will update shareholders with progress on both the testing and workover activities as the programme advances,” Echo said in a statement.

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Fri, 06 Jul 2018 07:54:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/200267/echo-energy-readies-for-argentina-well-testing-programme-200267.html
<![CDATA[Media files - 'A lot to look forward to' as Echo Energy begins final well in Argentina programme ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/9767/-a-lot-to-look-forward-to-as-echo-energy-begins-final-well-in-argentina-programme-9767.html Tue, 03 Jul 2018 15:11:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/9767/-a-lot-to-look-forward-to-as-echo-energy-begins-final-well-in-argentina-programme-9767.html <![CDATA[News - Echo Energy kicks off final well in current Argentina campaign ]]> https://www.proactiveinvestors.co.uk/companies/news/200002/echo-energy-kicks-off-final-well-in-current-argentina-campaign-200002.html Echo Energy Plc (LON:ECHO) told investors it has begun drilling on its fourth and final well in its Argentina programme, with the spudding of the CSo-2001d well at the Fracción D asset.

The well is targeting a prospect that was identified on 2D data and it is due to have a 1,514 metre measured depth.

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

It is targeting a possible 19bn cubic feet of contingent gas resources, shown in a recent competent persons report (CPR), in addition to a further 18.7bn cubic feet which was deemed to be prospective resources in the same report.

“The company will update shareholders with progress on the exploration drilling programme as the programme advances,” Echo said in a statement.

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Tue, 03 Jul 2018 07:23:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/200002/echo-energy-kicks-off-final-well-in-current-argentina-campaign-200002.html
<![CDATA[News - Echo Energy brings in industry veteran as new CFO ]]> https://www.proactiveinvestors.co.uk/companies/news/199852/echo-energy-brings-in-industry-veteran-as-new-cfo-199852.html Latin America-focused junior oiler Echo Energy Plc (LON:ECHO) has appointed Martin Hull as its new chief financial officer.

Hull, who will officially take up his post on August 1, joins from Rothschild & Sons where he was managing director in the global energy team focusing on Latin America and Africa.

Prior to that, he had been head of oil & gas, Southeast Asia, based out of Singapore.

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

Current CFO Will Holland will remain in his role until July 31, after which he will continue to assist Echo in an advisory position.

“I'm delighted to welcome Martin to the company and look forward to working together as we enter the next phase of growth,” said chief executive Fiona MacAulay.

“Martin brings a wealth of energy transaction experience and contacts throughout the sector through his work with listed companies, private equity, majors and NOCs over the course of his career with Rothschild.”

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Fri, 29 Jun 2018 08:11:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/199852/echo-energy-brings-in-industry-veteran-as-new-cfo-199852.html
<![CDATA[News - Echo Energy hits “significant hydrocarbons” in EMS-1001 exploration well ]]> https://www.proactiveinvestors.co.uk/companies/news/199281/echo-energy-hits-significant-hydrocarbons-in-ems-1001-exploration-well-199281.html 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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Thu, 21 Jun 2018 07:14:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/199281/echo-energy-hits-significant-hydrocarbons-in-ems-1001-exploration-well-199281.html
<![CDATA[News - Echo Energy up as it switches Argentina drill schedule to accelerate Fracción D ]]> https://www.proactiveinvestors.co.uk/companies/news/198920/echo-energy-up-as-it-switches-argentina-drill-schedule-to-accelerate-fraccion-d-198920.html Echo Energy Plc (LON:ECHO) shares rose on Friday as it told investors that it is changing its drill plans in Argentina to accelerate the Fracción D asset.

The company recently completed a successful well test on the CSo-85 well, which had been the subject of a work-over and it has now decided to substitute the fourth and final slot in the present Fracción C and Laguna de Los Capones drill programme with a new well at Fracción D.

As a result, Echo will next drill at the CSo 111-I well location at Fracción D. There, the company will be targeting the Tobifera gas play.

READ: Echo Energy highlights “very positive” well test results

It will test a gross prospective gas resource of 18.8bn cubic feet, as well as potentially confirming existing contingent resources of 19.0 bcf.

Echo said a success in the well would support an early decision for gas development at Fracción D.

"The recent positive results from the extended testing at CSo-85 of the Springhill reservoir, mean that prior to sanction of any development plan the company and its partner would like to understand the potential scale of development including contribution of gas from the Tobifera formation,” said Fiona MacAulay, Echo chief executive.

“We are delighted to be able to advance the drilling of CSo 111-1 well, as this will greatly enhance our understanding of the developable asset base in Fracción D and enable the optimised design of pipeline and processing facility capacities.

MacAulay added: “We are, as ever, focused on maximising long-term value for Echo shareholders and will continue to seek to optimise operational plans with that goal in mind."

In early morning trading, Echo Energy shares 0.9% higher at 11.8p.

 -- Adds share price --

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Fri, 15 Jun 2018 07:32:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/198920/echo-energy-up-as-it-switches-argentina-drill-schedule-to-accelerate-fraccion-d-198920.html
<![CDATA[News - Echo Energy kicks off drilling EMA-1001 exploration well ]]> https://www.proactiveinvestors.co.uk/companies/news/198663/echo-energy-kicks-off-drilling-ema-1001-exploration-well-198663.html Echo Energy Plc (LON:ECHO)  has told investors that drilling has now begun for the EMS-1001 well in Argentina.

It is the third of four planned wells in the current programme.

READ: Echo Energy highlights “very positive” well test results

EMS-1001 is located in the southern area of the Fracción C licence. The well will be drilled down to 2,250 metres deep and is targeting 60mln barrels of prospective oil in place.

Last week, Echo revealed details from the ELA-1 well, the second in the programme, which encountered gas shows across a 40metre section in the deeper Tobifera volcaniclastic target and some oil staining was also observed.

Echo noted that analysis via wireline logging is complicated, as is expected in this particular area, due to complex mineralogy of the volcanic reservoir. It is now working to determine the potential for further testing in the section once a test rig is present in the licence.

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Tue, 12 Jun 2018 07:13:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/198663/echo-energy-kicks-off-drilling-ema-1001-exploration-well-198663.html
<![CDATA[News - Echo Energy highlights “very positive” well test results ]]> https://www.proactiveinvestors.co.uk/companies/news/198573/echo-energy-highlights-very-positive-well-test-results-198573.html Echo Energy Plc (LON:ECHO) has released details of what it described as “very positive” well testing results, following the successful work-over of the CSo-85 well at the Fracción D asset, Argentina.

A maximum flow rate of 2.5mln cubic feet of gas per day was measured in the well during a sixteen day period of stabilised gas production.

READ: Echo Energy looks forward to testing ELA-1 well

"The extended testing of the Springhill C1 reservoir on the eastern flank of the Cañadon Salto field has provided us with some very positive data relating to the likely commerciality of the gas development of the field,” said Fiona MacAulay, Echo chief executive.

“Echo and its partner, CGC, are working to establish a fully costed development plan including the pipeline and associated gas processing facilities along with the timeline on which we could anticipate the development activities to commence."

The company told investors that the well results indicate that the CSo-85 well is “in direct communication” with around 4 billion cubic feet of gas that’s seen to be in the Springhill C1 reservoir.

It added that it may now be possible to convert some, or all, of the currently classified gross best case prospective resources of 15.3 bcf immediately to contingent resources.

Moreover, the company highlighted that deeper resources in the Springhill C3 reservoir has some 11.6 bcf of estimated prospective resources across the same eastern flank as CSo-85, and that gas could similarly be converted if that reservoir is added to the development plan.

Presently, a possible drill programme is being evaluated for an additional well in the current campaign, it would test 18.8 bcf of prospective resources, and if it’s a success it would support an early decision to develop the resources at Fracción D.

 

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Mon, 11 Jun 2018 07:32:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/198573/echo-energy-highlights-very-positive-well-test-results-198573.html
<![CDATA[News - Echo Energy looks forward to testing ELA-1 well ]]> https://www.proactiveinvestors.co.uk/companies/news/198334/echo-energy-looks-forward-to-testing-ela-1-well-198334.html Echo Energy Plc (LON:ECHO) told investors it has now completed the ELA-1 well, at the Laguna Los Capones project area, in the Fracción C licence area onshore Argentina.

The well, drilled to a depth of 1,829 metres, encountered gas shows across a 40metre section in the deeper Tobifera volcaniclastic target and some oil staining was also observed.

READ: Echo Energy raises £8.5mln to accelerate Argentina exploration

Echo noted that analysis via wireline logging is complicated, as is expected in this particular area, due to complex mineralogy of the volcanic reservoir.

It is now working to determine the potential for further testing in the section once a test rig is present in the licence.

"The interpretation of oil in the Tobifera at this location is exciting and suggests the ability of that formation to generate hydrocarbons in situ as is seen in the nearby Laguna Maria field which has been on production since 2016,” said Fiona MacAulay, Echo chief executive.

“If testing determines that this section can support commercial flow rates, the well can be quickly brought into production.”

Shallower target unsuccessful in this location

Gas shows were also seen in a shallower target, however, following analysis the company believes it to be water bearing at this location. The company added that it may consider extending a sidetrack to test an up-dip portion of this reservoir.

The drill rig will now move on to the El Molino Sur location, which will be the third of four planned exploration wells.

MacAulay added: “Whilst the Springhill reservoir had only a limited interval of gas shows at this location, the extent and quality of the Springhill reservoir on the flanks of the structural high, is likely to indicate that the reservoir may unusually extend across the top of the structure with the potential of pay at a higher level.

“The performance of both the rig and crew has been excellent leading to a lower than anticipated capex spend on this well which could therefore be allocated to an up-dip location at a later date."

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Wed, 06 Jun 2018 07:30:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/198334/echo-energy-looks-forward-to-testing-ela-1-well-198334.html
<![CDATA[News - Echo Energy kicks off ELA-1 well drilling ]]> https://www.proactiveinvestors.co.uk/companies/news/197810/echo-energy-kicks-off-ela-1-well-drilling-197810.html Echo Energy PLC (LON:ECHO) told investors that drilling is now underway on the ELA-1 well, at the Laguna de Los Capones asset which is part of the wider Fracción C project area.

It is the second of four planned wells in the current programme.

READ: Echo Energy raises £8.5mln to accelerate Argentina exploration campaign

Drilling began on May 26. The well is targeting a structural 4 way closure at the Springhill and Tobifera levels, Echo noted.

The well is being drilled down to a depth of 1,800 metres. The exploration target is estimated to host some 40 billion cubic feet of gas in place, according to consultant Gaffney Cline & Associates.

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Tue, 29 May 2018 09:49:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/197810/echo-energy-kicks-off-ela-1-well-drilling-197810.html
<![CDATA[News - Echo Energy raises £8.5mln to accelerate Argentina exploration campaign ]]> https://www.proactiveinvestors.co.uk/companies/news/197688/echo-energy-raises-85mln-to-accelerate-argentina-exploration-campaign-197688.html Echo Energy Plc (LON:ECHO) is raising £8.5mln of new capital though a share placing and subscription as it plans to accelerate its operations in Argentina.

It is issuing 71.18mln new shares, priced at 12p each.

WATCH: Echo Energy hails gas discovery at Fracción C asset in Argentina

The company, in a statement, highlighted the success of its programmes in Argentina to date. It has completed work-overs on three existing wells at the Fracción D project, and, has successfully drilled the first of four exploration wells at Fracción C and Laguna Los Capones.

Echo highlighted that following the successes and given attractive contractor rates it is bringing forward a planned 2,000 square kilometre seismic campaign for the Tapi Aike exploration area.

In the present climate, the company expects the seismic will cost around US$7mln and it believes the placing proceeds will be sufficient to complete the programme.

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Fri, 25 May 2018 07:29:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/197688/echo-energy-raises-85mln-to-accelerate-argentina-exploration-campaign-197688.html
<![CDATA[Media files - Echo Energy hails gas discovery at Fracción C asset in Argentina ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/9325/echo-energy-hails-gas-discovery-at-fraccin-c-asset-in-argentina-9325.html Fri, 18 May 2018 12:30:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/9325/echo-energy-hails-gas-discovery-at-fraccin-c-asset-in-argentina-9325.html <![CDATA[News - Echo Energy unearths new gas discovery in Argentina ]]> https://www.proactiveinvestors.co.uk/companies/news/197250/echo-energy-unearths-new-gas-discovery-in-argentina-197250.html Echo Energy Plc (LON:ECHO) has announced a gas discovery in the ELM-1004 exploration well, at the Fracción C asset, onshore Argentina.

As the first well in a four well programme, it marks a successful start to Echo’s exploration campaign.

The well was drilled down to 1,760 metres and it encountered over 40 metres of gas shows through the Upper Tobífera. The company highlighted that it saw gas peaks of over 195,000 parts per million and a full distribution of C1 to C5 hydrocarbons.

WATCH: Echo Energy hails gas discovery at Fracción C asset in Argentina

Echo noted that, as in other areas of the basin, determining net pay is complicated because of the mineralogy of the volcanic reservoir. Nonetheless, it estimates the net pay at around 14.5 metres within the gas section - which it said was towards the upper end of the anticipated range.

The well is now being prepared for testing and production, and, the next phase of work on ELM-1004 will utilise a completion rig.

"We are very excited to have confirmed the presence of a substantial gas column in this first well of our four well exploration programme and look forward to the arrival of the completion rig and subsequent testing in June,” said chief executive Fiona Macaulay, Echo chief executive.

Meanwhile, drilling operations will continue with the next well in the schedule, the Los Alamos x-1 well (also referred to as ELA-1).

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Fri, 18 May 2018 07:24:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/197250/echo-energy-unearths-new-gas-discovery-in-argentina-197250.html
<![CDATA[News - Echo Energy clarifies position regarding Argentinian Peso ]]> https://www.proactiveinvestors.co.uk/companies/news/196840/echo-energy-clarifies-position-regarding-argentinian-peso-196840.html Echo Energy PLC (LON:ECHO) has clarified its position regarding the economic situation in Argentina which, at a cash level, could be argued to be a positive for the explorer.

The company, in a statement, noted the increase in Argentina’s interest rate to 40% - which triggered a currency free-fall - and confirmed that it does not hold its cash in Argentinian Pesos.

READ: Echo Energy sizes up massive potential for Tapi Aike licence

It added that it has no borrowings linked to Argentinian Pesos either.

Instead, the group’s policy is to hold all cash in either GBP, USD and Euros. Capital costs tied to the group’s ongoing Argentinian work programme are priced in USD and only converted to Pesos at the point of payment.

Similarly, the company said that its sales in the country are denominated in USD and are only converted to Pesos on receipt of funds.

“These receipts are used to pay local operating costs that are due in Pesos, and, as a result, the Company's exposure to the recent weakening of the Peso has been positive,” Echo said in the statement.

Exploration and work-over programmes

Echo earlier this week kicked off an exploration drilling programme at the Fracción C asset, where it has four wells planned.

The first well, referred to as ELM-1004, is targeting the crest of a structure that’s estimated to host some 38bn cubic feet of potential gas resources. It is located around four kilometres from the Estancia La Maggie gas collection facilities, and thus has potential to be commercialised relatively quickly.

It follows well workover success at the Fracción D asset, where an extended flow period was recently completed in the CSo-85 well. Further announcements regarding both wells are anticipated as the respective programmes advance.

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Fri, 11 May 2018 14:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/196840/echo-energy-clarifies-position-regarding-argentinian-peso-196840.html
<![CDATA[News - Echo Energy shares rise as oiler kicks off exploration drilling in Argentina ]]> https://www.proactiveinvestors.co.uk/companies/news/196609/echo-energy-shares-rise-as-oiler-kicks-off-exploration-drilling-in-argentina-196609.html Echo Energy Plc (LON:ECHO) has told investors it has now begun drilling the first of four back-to-back exploration wells in Argentina.

All four wells are being drilled within the Fracción C asset.

The first well, referred to as ELM-1004, is targeting the crest of a structure that’s estimated to host some 38bn cubic feet of potential gas resources.

READ: Echo Energy reveals second well workover success

It is located around four kilometres from the Estancia La Maggie gas collection facilities, and thus has potential to be commercialised relatively quickly.

"We are delighted to be starting our exciting four well exploration campaign shortly after the successful workover well campaign in Fracción D,” said Fiona MacAulay, Echo chief executive.

Echo added that an extended flow period has now been completed at the CSo-85 well, at Fracción D, following successful work-over, and, the well will now be shut-in for a planned pressure build up.

Further announcements regarding both wells are anticipated as the respective programmes advance.

In afternoon trading, Echo Energy shares were nearly 4% higher at 13.05p.

 -- Adds share price --

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Wed, 09 May 2018 07:19:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/196609/echo-energy-shares-rise-as-oiler-kicks-off-exploration-drilling-in-argentina-196609.html
<![CDATA[News - Echo Energy readies for exploration drilling in Argentina ]]> https://www.proactiveinvestors.co.uk/companies/news/196016/echo-energy-readies-for-exploration-drilling-in-argentina-196016.html Echo Energy Plc (LON:ECHO) told investors it soon expects a four-well exploration drilling campaign will get underway in the Fracción C area, in Argentina.

The Petreven H-205 rig is due to mobilise to the first well site, ELM 1004, imminently and it is expected to be on site in early May.

In an operations update, Echo also gave investors insights into the ongoing workover programme, where testing is underway on the gas discovery in the CSo-85 well. Testing is expected to last for a further three weeks as the company works to investigate the asset’s economic viability.

READ: Echo Energy reveals second well workover success in Argentina

The company highlighted that a recent competent persons report estimated the resources in the targeted C1 and C3 between 8.6 and 82 billion cubic feet of gas (low case to high), with the mid case estimate pitched at 26.7bn.

In order to be considered commercially viable the project would need at least 7-10bn cubic feet of gas.

Additionally, it noted that a separate gas target - located in Cañadon Salto - may now be considered for exploration later this year. Here, some 7 to 49bn cubic feet of gas has been estimated.

Workovers under budget

Echo also updated investors on well workovers in the west and centre of the field, which produced a combination of oil and water.

The CSo-80 well has been suspended pending further development of the project, to install an electric submersible pump. Further potential well candidates have now been identified, and will be incorporated into project planning.

It added that the rig will now be demobilised, and that the programme costs for the first part of the campaign have been materially lower than the budget of US$1.5mln.

Seismic exploration is additionally on the agenda, and the company said that it has received multiple highly competitive tenders for the proposed 2,000 square kilometre survey to span the  Fracción C, D and Tapi Aike areas.

The work is due to start later this year, in the third or fourth quarter.

Exceptionally busy

Echo chief executive Fiona MacAuley said: “This is an exceptionally busy and exciting period for the company and we are delighted to have completed this first phase of the operational programme on the company's Fracción D asset safely and successfully.

“We are pleased that the positive results from the CSo-85 Well will enable us to assess the commerciality of the gas project for the field alongside planning of nearer term interventions to re-establish production from existing oil wells.

She added: “We are also poised to commence our four well exploration programme in Fracción C in early May and alongside that are finalising the tenders for the Seismic Acquisition programme across all the licences scheduled to commence in Q3/Q4 2018.

“I would like to thank all the Echo team for their continued efforts to enable these multiple workstreams to continue.”

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Mon, 30 Apr 2018 07:31:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/196016/echo-energy-readies-for-exploration-drilling-in-argentina-196016.html
<![CDATA[News - Echo Energy reveals second well workover success in Argentina ]]> https://www.proactiveinvestors.co.uk/companies/news/195528/echo-energy-reveals-second-well-workover-success-in-argentina-195528.html Echo Energy PLC (LON:ECHO) has told investors that the second well workover in Argentina has been a success.

The CSo-80, within the Fracción D asset, was opened up in a previously untapped reservoir section and a combination of oil and water flowed to surface, the company revealed.

It is now planned that an electric submersible pump (ESP) will be installed in the well, before it is tested and brought into production. The company expects the well will produce some 60 bopd with the pump’s assistance.

READ: Echo Energy sizes up massive potential for Tapi Aike licence

“This positive result provides scope for Echo to consider, in tandem with the company's gas pipeline sanction, the early field rehabilitation of the Canandon Salto oil field and the company has commenced a process to identify a number of potential candidate wells for recompletion in the central part of the field,” Echo said in a statement.

In the meantime, the company will move the Quintana rig on to the CSo-50 well location, for the third and final well workover in the current programme.

At the same time, Echo confirmed that testing equipment has now arrived at the CSo-85 well location, where it will have to provide further information following the first workover success.

Earlier this month, the worked over CSo-85 well perforated a previously untapped gas reservoir which flowed to surface without any further intervention. Gas flows from the reservoir are estimated at 2mln cubic feet per day.

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Mon, 23 Apr 2018 07:18:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/195528/echo-energy-reveals-second-well-workover-success-in-argentina-195528.html
<![CDATA[News - Echo Energy sizes up massive potential for Tapi Aike licence ]]> https://www.proactiveinvestors.co.uk/companies/news/195256/echo-energy-sizes-up-massive-potential-for-tapi-aike-licence-195256.html At the start of 2018, Echo Energy PLC (LON:ECHO) acquired a 50% working interest in four onshore blocks in Argentina.

Of these, Fraccion C, Fraccion D, and Laguna De Los Capones, either have previously or are in production while the fourth was an exploration permit for the hugely promising Tapi Aike block.

READ: Echo Energy pushing ahead with programmes in Argentina

According to valuation estimates by Gaffney Cline & Associates (GCA), net 2P and 2C reserves for Echo are worth a total of US$49.3mln, with the Fraccion C and Fraccion D sites containing reserves of US$14mln.

Tapi Aike, located in the Austral basin, is at a much earlier stage but a provisional estimate for the field suggests a risked value net to Echo of approximately US$87mln.

Tapi Aike was one of the most hotly contested blocks when it was put out to tender recently, with a competent person’s report identifying the largest two leads as potentially containing 3.8 and 2.6 trillion cubic feet (Tcf) worth of gas in place, with three other leads containing potentially more than 1 Tcf each.

Echo has earmarked US$26mln for exploration at the licence.

Oil and gas prices moving positively

Argentina has been a difficult place to explore for oil and gas in the past but the mood has improved markedly since a new government was elected last year.

Global oil and gas prices are also starting to move in its favour.

First oil sales from its Argentine blocks were priced at more than US$70 per barrel or close to a three-year high for Brent crude.

Joint evaluation in Bolivia

Away from Argentina, Echo has an involvement in the neighbouring Latin American country of Bolivia, where it is currently partnered in a joint evaluation agreement with Pluspetrol for the Huayco block in the prolific Tarija basin.

Tarija is believed to be home to 85% of Bolivia’s gas reserves, and with natural gas making up 40% of the country’s exports, the national government is keen to increase sales as it recently sanctioned a direct export pipeline to Paraguay.

Like Argentina, the political situation has been uncertain in the past but like its neighbour, sentiment about the industry is improving rapidly as the government looks to build up its internal production.

Calculating the potential of all its assets, and deducting farm-in costs, GCA has estimated the value of Echo (excluding warrants and options) at US$172.4mln, or £129.6mln.

As of midday on 18 April 2018, Echo’s market cap stood at £60.3mln.

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Wed, 18 Apr 2018 12:47:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/195256/echo-energy-sizes-up-massive-potential-for-tapi-aike-licence-195256.html
<![CDATA[News - Echo Energy exports first oil cargo from Argentina projects ]]> https://www.proactiveinvestors.co.uk/companies/news/195230/echo-energy-exports-first-oil-cargo-from-argentina-projects-195230.html Echo Energy Plc (LON:ECHO) said it exported its first cargo of oil produced at the Fraccion C and Fraccion D projects on 14 April 2018.

The AIM-listed oil and gas company said its share of oil production in the first quarter of 2018 from the two sites was around 25,000 barrels, with a final realised sale price based on the average Brent crude price (currently US$71.6 per barrel) for the 5 days following cargo loading with a US$6 discount per barrel. 

READ: Echo Energy pushing ahead with programmes in Argentina

The group added that it had sold all its sales gas produced in the first quarter, totalling a net of 245.1mln standard cubic feet, to the Argentinian market for an average price of US$4.21 per million British thermal units (mmbtu).

Echo estimated that net sales receipts for the first quarter before royalty, tax and operating expenses will be around US$2.7mln.

Echo Energy chief executive, Fiona MacAulay, said: “Loading our first cargo was a significant step for Echo, particularly with Brent currently trading at a sustained US$70 / barrel for the first extended period during 2018.

She added: “We are also delighted that gas sales have remained strong and our realised blended price for those has been in excess of US$4.20 per mmbtu throughout the summer season in Argentina. Receipt of maiden LATAM revenues in Q1 marks an important milestone in the Company's mission to become an exploration-led gas-focused mid-cap E&P, delivering value for shareholders.”

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Wed, 18 Apr 2018 08:02:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/195230/echo-energy-exports-first-oil-cargo-from-argentina-projects-195230.html
<![CDATA[News - Echo Energy pushing ahead with programmes in Argentina ]]> https://www.proactiveinvestors.co.uk/companies/news/195032/echo-energy-pushing-ahead-with-programmes-in-argentina-195032.html Echo Energy Plc's (LON:ECHO) status as an Argentina and Bolivia-focused firm enabled it to acquire a 50% working interest in four onshore blocks in Argentina at the start of the year, said Fionia MacAulay, chief executive.

Echo acquired a 50% working interest in Fraccion C, Fraccion D, Laguna De Los Capones and the exploration permit at Tapi Aike.

READ: Echo Energy reveals early success with Argentina workover programme

Work has already started on a three-well workover programme at Fraccion D, while a drill rig has been secured for a four well back-to-back exploration campaign in Fracción C and Laguna De Los Capones in May.

Tenders for a 2,000 km seismic acquisition campaign across Tapi Aike and Fracción C and D have also been issued.

In Bolivia, Echo has a joint evaluation agreement with Pluspetrol on the Huayco block and a technical evaluation agreement with Pluspetrol and YPFB over the Rio Salado block.

Development on these two blocks remains dependent on commercial terms being agreed.

MacAulay added: “Echo ended the year with having secured a transformation deal in Argentina with CGC and a strong balance sheet consisting of £19.7m of cash, sufficient to complete the first phase of the exploration and appraisal programme in Argentina.

Losses for 2017 were £7.4mln. Since the year-end Echo has raised a further £6.4mln through a share issue at 17.5p.

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Mon, 16 Apr 2018 08:33:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/195032/echo-energy-pushing-ahead-with-programmes-in-argentina-195032.html
<![CDATA[News - Echo Energy reveals early success with Argentina workover programme ]]> https://www.proactiveinvestors.co.uk/companies/news/194918/echo-energy-reveals-early-success-with-argentina-workover-programme-194918.html Echo Energy Plc (LON:ECHO) told investors that it has successfully brought gas to surface following the well workover of a three well programme at the Fracción D asset, onshore Argentina.

The existing well, tagged CSo-85, perforated a previously untapped gas reservoir which flowed to surface without any further intervention. Gas flows from the reservoir are estimated at 2mln cubic feet per day.

A testing unit is due on site in the next 10-14 days, Echo said.

'We are delighted that the first step of this exciting workover campaign has been safely and successfully completed, re-entering the well and establishing gas flow to the wellhead without any requirement for artificial lift,” said Fiona Macaulay, Echo chief executive.

“Once the full testing unit is in place we will analyse the well performance during the scheduled long term test. In this fast moving operational phase, the Quintana-01 rig will be moved directly to the second well in the workover campaign to complete and perforate a similar gas zone.”

READ: Echo Energy details plans for projects in Argentina

Echo cautioned that whilst it considers the initial gas flows to be a positive initial indication, they should not be considered conclusive until the extended flow and build-up test is complete. 

The workover rig will move on to the next well, CSo-80, and operations are expected to get underway there over the weekend.

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Fri, 13 Apr 2018 07:30:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/194918/echo-energy-reveals-early-success-with-argentina-workover-programme-194918.html
<![CDATA[News - Echo Energy readies for start of well operations in Argentina ]]> https://www.proactiveinvestors.co.uk/companies/news/194614/echo-energy-readies-for-start-of-well-operations-in-argentina-194614.html Echo Energy Plc’s (LON:ECHO) signalled on Friday that operations were just around the corner in Argentina as it announced that a rig had been mobilised for the planned three well programme at the Fracción D asset.

The Quintana-01 rig was due to travel around 250 kilometres by road over a three-day period.

Today, a social media post on Twitter indicated that the mobilisation has been completed and that the rig will soon be ready to get to work.

Rig up at Fraccion D for first workover. See video here: https://t.co/okeebMxk3H pic.twitter.com/Zs7ZxmAyNz

— Echo Energy Plc (@echoenergyplc) April 10, 2018

Moreover, a  Youtube video gave investors further insight ahead of the three-well workover.

At each well location, the programme will see the abandonment of the previously producing but now suspended oil zones, before the recompletion of discovered but uncompleted gas zones. The expectation is that each well programme will take about 10 days.

"We are delighted to be moving into this exciting workover campaign and look forward to updating our shareholders as the programme progresses,” Echo chief executive Fiona MacAulay said, in Friday’s statement.

“Alongside these workovers we continue with the detailed engineering work programmes that are now being finalised for the back to back four well exploration campaign at Fracción C, where the drilling rig is due to arrive on location in early May."

Each well will undergo a period of testing, before the company makes any decision to sanction a wider redevelopment of the field (which would include the building of a 28 kilometre pipeline).

Testing is expected to last for up to 30 days for each well. The programme is estimated to cost US$550,000 per well.

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Tue, 10 Apr 2018 10:25:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/194614/echo-energy-readies-for-start-of-well-operations-in-argentina-194614.html
<![CDATA[News - Echo Energy looks forward to well workover programme as rig is mobilised ]]> https://www.proactiveinvestors.co.uk/companies/news/194402/echo-energy-looks-forward-to-well-workover-programme-as-rig-is-mobilised-194402.html Echo Energy PLC (LON:ECHO) told investors that the rig has been mobilised for the planned three well programme at the Fracción D asset, onshore Argentina.

The Quintana-01 rig is travelling around 250 kilometres by road to Fracción D and the mobilisation is expected to take three days.

At each well location, the programme will see the abandonment of the previously producing but now suspended oil zones, before the recompletion of discovered but uncompleted gas zones. The expectation is that each well programme will take about 10 days.

READ: Echo Energy details plans for projects in Argentina

"We are delighted to be moving into this exciting workover campaign and look forward to updating our shareholders as the programme progresses,”

“Alongside these workovers we continue with the detailed engineering work programmes that are now being finalised for the back to back four well exploration campaign at Fracción C, where the drilling rig is due to arrive on location in early May."

Each well will undergo a period of testing, before the company makes any decision to sanction a wider redevelopment of the field (which would include the building of a 28 kilometre pipeline).

Testing is expected to last for up to 30 days for each well. The programme is estimated to cost US$550,000 per well.

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Fri, 06 Apr 2018 07:21:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/194402/echo-energy-looks-forward-to-well-workover-programme-as-rig-is-mobilised-194402.html
<![CDATA[News - Echo Energy hires new COO and updates on Bolivia progress ]]> https://www.proactiveinvestors.co.uk/companies/news/192966/echo-energy-hires-new-coo-and-updates-on-bolivia-progress-192966.html Echo Energy Plc (LON:ECHO) has announced the appointment of Geoff Probert as its new chief operating officer and updated investors on activities in Bolivia, where desktop work continues to advance the group’s exploration portfolio.

The explorer has completed a package of seismic reprocessing, for around 250 square kilometres, and it noted that more data will be incorporated into its studies later this year.

READ: Echo Energy details plans for projects in Argentina

Additionally, it highlighted the opportunity to progress to a commercial agreement by completing a technical evaluation, due in the second half of this year.

Echo expects that the selection of new well locations will wait until the results of regional well drilling are known, and it expects that the programme would follow the introduction of a new partner.

"We continue to make significant progress technically and in strengthening our senior resource,” said chief executive Fiona MacAulay.

“It has already been a busy year for Echo, including in Bolivia, and I am pleased that the complex advanced techniques employed to enhance the seismic data have enabled us to build a more robust model across the acreage under consideration.

“Efforts will now be focused on defining the prospectivity across the Huayco and Rio Salado acreage alongside evaluating other complementary opportunities in the region. 

MacAulay highlighted that Probert, the new chief operating officer, brings ‘invaluable skills’ as the company advances its busy operation plans for its recently acquired Argentina assets.

Probert has previously held senior and executive roles at Shell, BHP Billiton and Petroceltic.

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Mon, 12 Mar 2018 07:21:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/192966/echo-energy-hires-new-coo-and-updates-on-bolivia-progress-192966.html
<![CDATA[News - Echo Energy details plans for projects in Argentina ]]> https://www.proactiveinvestors.co.uk/companies/news/191492/echo-energy-details-plans-for-projects-in-argentina-191492.html Echo Energy Plc (LON:ECHO) has revealed plans for its projects in Argentina where it will drill four new exploration wells this year.

First, however, the company will carry out three back-to-back workover programmes on existing wells at the Fracción D project area. The exploration wells, meanwhile, will be positioned in the Fracción C and Laguna De Los Capones areas.

READ: Echo Energy “ready to initiate” busy exploration campaign in Argentina

A new seismic exploration programme is also planned, at the Tapi Aike exploration block. A recent competent persons assessment identified some 41 leads here, with the potential estimated in excess of 22 trillion cubic feet. The assessment included five individual leads which were each seen to have the potential for 1-3.8 trillion cubic feet of gas.

The Tapi Aike seismic is due to get underway in the fourth quarter, allowing for exploration drilling in 2019. Echo described the potential drill programme at Tapi Aike as “transformational”.

In a stock market statement, Echo chief executive Fiona MacAulay highlighted the “real progress” made by the company since it took up the Argentina assets in 2017.

“It is very pleasing that we have been able to move so rapidly to the operational phase after the completion of the transaction to enter Argentina,” she said.

“We are now ready to initiate an exciting programme of back-to-back workovers, exploration drilling, seismic acquisition and prospect generation.

“Our onshore exploration wells are all located close to existing facilities and in the success case can be commercialised into gas hungry markets at advantaged pricing in very short order. We look forward to updating investors on our progress in due course.”

Drill plans detailed

Echo will start exploration drilling in May with the Estancia La Maggie X- 1004 well targeting 20 billion cubic feet of gas. The well is estimated to have a 40% chance of success. Echo’s stake in the prospect is valued at around US$16.9mln.

It will be followed by the Los Alamos well which targets 21bn cubic feet of gas and is seen to have a 36% chance of success.

The Molino Sur oil target is third in the schedule, anticipated in either later June or July, and it will test a potential 11mln barrel resources. The chance of success is seen at 36%, and Echo’s stake in the project could potentially be worth US$69mln.

Echo plans to end the four-well programme with the Los Joaquines well, in July or August, where it is targeting a 15bn cubic feet prospect with a 36% chance of success.

Each well in the programme has an estimated gross drill cost of US$1.8mln and gross completion costs are budgeted at US$1mln per well. Each is expected to take around 15 days to drill.

The preceding three well work-over programme aims to open up suspended gas wells. Each well is expected to take 10 days, at a cost of US$0.55mln per well. It is planned that the wells will undergo extended well testing, ahead of the sanctioning of commercial production operations.

 

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Mon, 12 Feb 2018 08:02:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/191492/echo-energy-details-plans-for-projects-in-argentina-191492.html
<![CDATA[News - Echo Energy “ready to initiate” busy exploration campaign in Argentina ]]> https://www.proactiveinvestors.co.uk/companies/news/190882/echo-energy-ready-to-initiate-busy-exploration-campaign-in-argentina-190882.html Echo Energy Plc (LON:ECHO) told investors it is now “ready to initiate” a busy new work programme in Argentina.

The company completed its Argentina acquisition earlier this month, and has already issued tenders for the planned seismic programme.

READ: Echo Energy investors excited by Argentina, shares rise as trading resumes

It intends to start drilling during the second quarter. It has reserved a slot in the rig schedule for what it described as a “ transformative” four well exploration well programme in the Fracción C area. To enable that programme to go ahead as planned, the well permitting process is presently underway.

READ: Echo Energy resonates with investors as its fortunes (and the business) are transformed

Echo said it has US$32mln of cash at the end of 2017, and it added that it won’t need further funding for the planned exploration drilling programme.

It will no longer proceed with a previously announced (on January 3) open offer of new shares.

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Wed, 31 Jan 2018 07:52:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/190882/echo-energy-ready-to-initiate-busy-exploration-campaign-in-argentina-190882.html