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.
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.