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Echo Energy says CLix-1001 well did hit primary target

The explorer speculated that the primary target being shallower than expected may mean there's more oil in the reservoir than previously estimated.

Echo Energy PLC - Echo Energy Plc says CLix-1001 well did hit primary target

Echo Energy PLC (LON:ECHO) told investors that the CLix-1001 well, its first in the Palermo Aike area, is now confirmed as successfully encountering its primary exploration target in the Springhill formation.

Following further analysis of well data, the company said that the primary target was found some 28 metres higher in the well than anticipated, and, some 58 metres above the interpreted regional water contact zone.

More work is needed, though Echo speculated that the target being shallower than anticipated is “potentially indicative” of increased reservoir volumes.

READ: Echo to test CLix-1001 following encouraging early analysis

Echo said that a programme of completion and conventional inflow testing has been agreed, and, it is slated to start in the second fortnight of February.

The aim will be to determine the productivity of the Springhill reservoir at the CLix-1001 well location and to identify which of the encountered intervals are ‘net pay’.

In the stock market statement, Echo said: “The company cautions that completion of the well test and analyses of the results is needed to conclusively establish both the presence of producible gas at CLix-1001 and the potential for the CLix-1001 well to de-risk further appraisal and development targets in the Campo Limite area.

“The presence of additional gas resources, if confirmed, would provide enhanced commercial development scenarios for existing discovered volumes at Palermo Aike.”

Last week, Echo revealed that it had completed drilling and wireline logging, and, it highlighted a zone of interest which coincides with elevated gas shows.

Quick facts: Echo Energy PLC

Price: 0.525 GBX

AIM:ECHO
Market: AIM
Market Cap: £3.74 m
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