Echo Energy reports oil to surface at second workover in Argentina

HOUSTON -- Echo Energy plc, the Latin American focused upstream oil and gas company, has announced the successful and safe completion of the second workover of the three-well workover campaign at the Company's Fracción D asset, onshore Argentina.

The workover of well CSo-80, a former oil producer from the C3 Springhill formation, saw the well plugged back across the C3 interval and perforated in the shallower C1 Springhill formation. The well is located within the central area of the now predominately shut in Canandon Salto field and, following perforation, a combination of oil and water flowed into the wellbore and to surface, indicating the re-distribution of fluid phases in the central part of the field into the former gas leg.

With oil now having been encountered in the CSo-80, the well will now be suspended while a project to install an electric submersible pump (ESP) is developed. Thereafter the well will be tested with a view to being brought directly into production using much of the existing oil production facilities at Fracción D. It is anticipated that production rates utilizing an ESP are likely to be in the region of 60 bopd for this well.

This positive result provides scope for Echo to consider, in tandem with the Company's gas pipeline sanction, the early field rehabilitation of Canandon Salto oil field and the Company has commenced a process to identify a number of potential candidate wells for recompletion in the central part of the field.

The Quintana rig will now be moving to the CSo-50 location on the West flank of the field to complete the third and final workover of the current campaign. Echo confirms the recent arrival of the full well testing equipment to the CSo-85 location.

Further announcements will be made, as appropriate, in due course.