Echo Energy announces rig mobilization for workover campaign in Argentina

OKLAHOMA CITY -- Echo Energy plc, the Latin American focused upstream oil and gas company, is pleased to announce the mobilization of the rig for a three well workover campaign at the Company's Fracción D asset, onshore Argentina.

The Quintana-01 rig, on contract to Compañía General de Combustibles S.A., the Company's Argentinian partner, has been mobilized from the west of the Austral basin and will travel approximately 250 km by road to Fracción D in the east of the Austral basin. Mobilization is expected to take approximately three days after which the rig-based activities on three selected existing wells will commence.

For each of the workovers, the rig workover program consists of abandoning the previously producing, but now suspended, oil zones and then completing the discovered but uncompleted gas zones within the Springhill formation. Each rig operation is expected to take up to 10 days, following which each well will be put on an extended well test to obtain further data on the existing gas volumes prior to any sanction of a commercial development, which would include the construction of a 28-km pipeline. Testing of each well is expected to take a maximum of 30 days, including flowing and shut in periods to determine reservoir pressures, connected volumes and flow rates. The total cost of the rig operations and testing is approximately $0.55 million per well.

The Company will provide market updates, as appropriate, as the workover programme advances.