Echo Energy PLC Result of EMS-1001 Well Stimulation Programme (6934P)

TIDMECHO

RNS Number : 6934P

Echo Energy PLC

12 February 2019

12 February 2019

Echo Energy plc

("Echo Energy" or the "Company")

Result of EMS-1001 Well Stimulation Programme

Further to the Company's announcement of 8 January 2019, the Company confirms that mechanical stimulation and testing operations on the EMS-1001 well in the Company's Fracción C licence, onshore Argentina, have been completed.

The well was mechanically stimulated through a 4m perforated interval in the Tobifera formation between 1892m and 1896m. Following clean-up operations using coiled tubing, EMS-1001 produced a mixture of pumped stimulation fluid and formation water at an average rate of 465 b/d while being artificially lifted using swabbing. No hydrocarbons were recovered from the well which suggests that the interpreted hydrocarbons present in the section are not mobile.

Based on these testing results, the Company has concluded that the EMS-1001 location is not commercial and no further testing is planned. The well will now be shut-in.

Martin Hull, Managing Director of Echo, commented:

The disappointing results of the EMS 1001 stimulation have demonstrated the challenges of working in a new volcaniclastic play. As we continue with our very active 2019 work programme we are now focused on more typical reservoirs, without volcaniclastics, in the West of the basin (Tapi Aike) and the Springhill in our C,D & L licences in the East. We have a heavy work programme at Tapi Aike this year, with seismic acquisition currently ongoing, leading to an exciting drilling campaign.

For further information please contact:

 
 Echo Energy 
  Martin Hull, Managing Director            [e-mail] 
 Cenkos Securities (Nominated Adviser) 
  David Jones 
  Ben Jeynes 
  Katy Birkin                             [phone] 
 Hannam & Partners (Joint Corporate 
  Broker) 
  Giles Fitzpatrick 
  Andrew Chubb 
  Ernest Bell                             [phone] 
 
 
 Shore Capital (Joint Corporate Broker) 
  Jerry Keen                               [phone] 
 
 
 Vigo Communications (PR Adviser) 
  Patrick d'Ancona 
  Chris McMahon                      [phone] 
 

The information contained in this announcement has been reviewed by Echo Energy's Chief Operating Officer, Mr Geoffrey Probert MEng, Member of Institute of Materials, Minerals and Mining. b/d means barrels per day.

The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

Note

The assignment of Echo's participation in the Fracción C, Fracción D, Laguna Los Capones and Tapi Aike licences is subject to the authorisation of the Executive Branch of Santa Cruz's Province, which is part of the overall process of title transfer that is proceeding as anticipated. The licences are operated by Compan i a General de Combustibles S.A. ("CGC").

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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February 12, 2019 02:00 ET (07:00 GMT)