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Echo Energy unearths new gas discovery in Argentina

The first of four exploration wells has hit gas, with net pay seen towards the upper end of expectations
oil and gas operations
Well testing is slated for June, meanwhile, the exploration team moves on to the next well

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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Echo Energy Plc Timeline

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