Proactive Investors
Chief Executive Fiona MacAulay says the well can be brought to production quickly should testing prove successful.
Echo Energy Plc (LON:ECHO) told investors it has now completed the ELA-1 well, at the Laguna Los Capones project area, in the Fracción C licence area onshore Argentina.
The well, drilled to a depth of 1,829 metres, encountered gas shows across a 40metre section in the deeper Tobifera volcaniclastic target and some oil staining was also observed.
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Echo noted that analysis via wireline logging is complicated, as is expected in this particular area, due to complex mineralogy of the volcanic reservoir.
It is now working to determine the potential for further testing in the section once a test rig is present in the licence.
“The interpretation of oil in the Tobifera at this location is exciting and suggests the ability of that formation to generate hydrocarbons in situ as is seen in the nearby Laguna Maria field which has been on production since 2016,” said Fiona MacAulay, Echo chief executive.
“If testing determines that this section can support commercial flow rates, the well can be quickly brought into production.”
Shallower target unsuccessful in this location
Gas shows were also seen in a shallower target, however, following analysis the company believes it to be water bearing at this location. The company added that it may consider extending a sidetrack to test an up-dip portion of this reservoir.
The drill rig will now move on to the El Molino Sur location, which will be the third of four planned exploration wells.
MacAulay added: “Whilst the Springhill reservoir had only a limited interval of gas shows at this location, the extent and quality of the Springhill reservoir on the flanks of the structural high, is likely to indicate that the reservoir may unusually extend across the top of the structure with the potential of pay at a higher level.
“The performance of both the rig and crew has been excellent leading to a lower than anticipated capex spend on this well which could therefore be allocated to an up-dip location at a later date.”
