What it does
Among its key assets there is Santa Cruz Sur, comprising five production concessions with 12 producing oil and gas fields.
How it is doing
In September, Echo completed an assessment of the Monte Aymond gas project, part of the Santa Cruz Sur assets, which is now seen as an exciting commercial project.
The company’s view of the project is influenced by recent improvements to local infrastructure and prevailing gas pricing in the region.
Monte Aymond, which is located some 5.2 kilometres from the company’s Palermo Aike licence area, is host to historic wells that were drilled successfully in the mid-1980s.
It is envisaged that an existing well will be worked-over to target the Springhill reservoir structure, seen in 3D seismic data.
A previously abandoned well discovered, tested and produced gas and condensate. The well initially flowed 2.4mln cubic feet of gas per day during testing and subsequently produced for ten months at 5mln cubic feet per day.
Echo noted that a 2019 concept study looked at a possible 2.6 kilometre connection to gas processing facilities across the border in Chile, at a gross cost of US$570,000 – allowing economic payback over three months, based on benchmark prices of US$42 per barrel oil and US$3.5 per mmbtu gas.
The company has now launched a feasibility study to explore the option for micro-LNG at Monte Aymond, to enable gas sales directly to customers in remote areas via truck transportation. It noted that this creates the potential for materially higher sales prices.
Other options being considered include the development of Monte Aymond as part of a hub development, via the aggregation of the volumes of both Campo Limite and Monte Aymond assets.
At Campo Limite testing of the CLix-1001 well is due to be scheduled once ongoing COVID-19 travel restrictions (which include closed borders to non-resident travellers) have been lifted.
What the boss says: Martin Hull, chief executive
“Echo Energy is once again entering a phase of enhanced activity as we progress various workstreams to deliver maximum value from our existing portfolio with a balanced risk-reward ethos, ensuring prudent financial management while also keeping our options open to further opportunities in the region.
“Success at Campo Limite has the potential to materially de-risk other projects in the Campo Limite area.
“This may include follow-on exploration wells on other structures, appraisal and development wells, or bringing existing discoveries on stream as part of a larger gas commercialisation strategy for the Palermo Aike licence.”
What the broker says: SP Angel
SP Angel described Monte Aymond as a positive update and that it can become a potentially material commercial development.
“The potential micro-LNG development plan which would involve minimum capital investment also suggests limited technical risk, having already been tested and can potentially be exploited with an innovative, and low capital, route to market,” analyst Sam Wahab said in a note.