Echo Energy PLC (LON:ECHO) has switched its drill rig in Argentina from its Tapi Aike licence to its new prospect at Santa Cruz Sur where drilling of the first well at Camp Limite is scheduled to start next week.
CLix-1001 will target the conventional Springhill reservoir on a structure located two kilometres from the Chilean border with a target depth of 2,300m.
The target structure is in the same fault block and up-dip of a well that has historically tested and produced gas from the Springhill reservoir.
The operator's estimated geological Chance of Success (CoS), based on analyses of other wells in the area, is 70%, with the identified risks being reservoir presence and deliverability.
Costs for CLix-1001 well will initially be paid for by previous owner Phoenix Global Resources with Echo to reimburse up to 60% of these up to a maximum of US$1.1mln.
Martin Hull, Echo’s chief executive, said: "The coming weeks represent a very exciting period for Echo as we drill CLix-1001 and move to begin the testing of the recently drilled CLM x-1 well in the Tapi Aike concession, following the previously announced encouraging initial data.”
Echo acquired a 70% non-operating stake in five producing blocks at Santa Cruz Sur in November for US$8.5mln.