Echo Energy reports gas discovery at first of four exploration wells in Argentina

LONDON -- Echo Energy plc, the Latin American focused upstream oil and gas company, has announced the successful completion of the ELM-1004 exploration well drilling at the Company's Fracción C asset, onshore Argentina, and a gas discovery for the first well in its four-well exploration campaign.

The well has been drilled into the Lower Tobífera formation to a Total Measured Depth of 1,760 m. The well encountered over 40 m of gas shows through the Upper Tobífera with gas peaks of over 195,000 ppm and a full distribution of C1 to C5 hydrocarbons, as measured against referenced background gas levels of less than 10,000 ppm outside of the zone.

Pre-drill resources for the ELM-1004 well were calculated on the basis of net pay of 7-11-15 m (P90-P50-P10). The determination of net pay from wireline log analysis with the complex mineralogy of the volcanic reservoir is, as normal in the basin, complicated, however initial interpretation computes around 14.5 m of net pay within the section, that being towards the upper end of the range and encouraging from a volumetric and value perspective.

A production casing string is currently being run in anticipation of the arrival of the completion rig, scheduled for June 2018, at which point the well will be tested to determine deliverability of the reservoir.

Following completion of this phase of the operation on the ELM-1004, the rig will move directly to the second prospect in our four well exploration progam, Los Alamos x-1 (ELA-1).