Echo Energy PLC (LON:ECHO) has confirmed an average production of 2,394 barrels oil equivalent (boe) per day in the first quarter of 2020 whilst detailing an opportunity for low-cost development work.
In an update on resources and reserves in Argentina, the company told investors that it has identified an initial portfolio of sixteen low-cost workover and intervention operations within the Santa Cruz Sur asset package.
These operations will be focused on taking additional volumes into production which will, in turn, migrate associated volumes into proven developed producing (PDP) reserves.
Echo noted that the cost of workover activity is low compared to new drilling and because the selected wells are within the producing area it will be straight forward to bring them online.
This initial sixteen well programme is part of a wider portfolio of workover and interventions opportunities being assessed by Echo and its partners.
"The addition of the important work in maturing the production enhancement opportunities recomfirms the flexibility and range of well-balanced risk-reward upside options contained within the Santa Cruz Sur portfolio,” Martin Hull, Echo chief executive said in the statement.
“In addition to the existing revenue-generating producing proved reserves, the combination of PDNP 1P and 2P production enhancement opportunities with exploration upside provides a diversified portfolio in a single set of assets at Santa Cruz Sur."
In the formal part of the statement, Echo confirmed it had 2.66mln boe of net attributable reserves at Sant Cruz Sur by the end of December 2019, with proved and probable reserves stated at 12.14mln barrels.
The resource inventory meanwhile included a ‘best estimate’ of 43mln barrels, with the ‘low’ case pitched at 10.3mln and the ‘high’ estimate at 458.2mln.