Echo Argentine Well Enables Reserve Upgrade

AIM-listed Echo Energy is ready to upgrade its reserves at the Fraccion D asset in Argentina, following completion of its extended well test in the mature Canadon Salto field in Argentina, it said June 11.  The well CSo-85 underwent 16 days of stabilised gas production and results were very positive, indicating that the well is "in direct communication" with about 4bn ft³ in the Springhill C1 reservoir. 

Integration of this data along with the mapped extent of the Springhill C1 reservoir on the eastern flank indicates that some, or all, of the classified gross best case prospective resources of 15.3bn ft³ may be converted to contingent resources. After agreement to move forward with a development plan, conversion to a reserves categorisation would follow, it said.

In addition to these Springhill C1 resources, the deeper Springhill C3 reservoir also present across the same eastern flank has some 11.6bn ft³ of gross best case prospective resources attributed to it, which would also be incorporated into a development plan with a similar expectation of reclassification.

Echo and its local partner Companía General de Combustibles (GCG) are evaluating the drilling of an additional Tobifera gas well on the western flank of Canadon Salto that would target total gross prospective resource of 18.8bn ft³ in addition to confirming existing contingent resources of 19.0 bcf (gross best case). Success on such a well would support an early decision for gas development at Fraccion D.

 CEO Fiona MacAulay said the testing of the Springhill C1 reservoir indicated that it is commercially viable. Echo and its  partner CGC are "working to establish a fully costed development plan including the pipeline and associated gas processing facilities along with the timeline on which we could anticipate the development activities to commence." Echo last month also found gas at its Fraccion C asset.