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Echo Energy #ECHO – Operations Update: Production and Infrastructure Enhancement Plan
Echo Energy, the Latin American focused energy company, is pleased to provide an operational update regarding further progress in the execution of the Santa Cruz Sur assets production and infrastructure enhancement plan first announced by the Company on 7 July 2022 (the “Enhancement Plan”).
Upgrades to the workover rig owned by the Santa Cruz joint venture partners have now been successfully completed.
As previously announced, the Enhancement Plan is targeting a total of approximately 30 or more wells with interventions to commence on mobilisation of the workover rig to the field. The scheduling of activities, on a well-by-well basis, remains dependent on the availability of materials required for individual well interventions and operational activities, including the timing of the future mobilisation of the now upgraded workover rig, will also be optimised from cash flow at the asset level in order to maximise the benefit of funds available.
Detailed scheduling and optimisation of the well re-opening programme under the Enhancement Plan has been undertaken and three additional oil wells have been identified which do not require the mobilisation of the workover rig. These wells have been offline for four years due to surface constraints. However, recently completed infrastructure upgrades have now removed these constraints and enable these wells to now be reactivated with the objective of bringing them back into production.
These three additional wells will be prioritised by the Santa Cruz Sur partners in seeking to further increase liquids production from the Chorillos field. This three well programme has now commenced and operations are expected to take around three weeks.
Following the previously announced successful completion of the first phase of the Enhancement plan focused on the power generation facilities, the already commenced programme to upgrade compressor capacity across the Santa Cruz Sur assets remains ongoing. Efforts continue to optimise the balance between maximising production and cashflow, minimising disruption and shortening the time required to complete the upgrades.
Production at Santa Cruz Sur in the first month of Q4 2022 has been strong with average daily production in October of 1,610 boe, net to Echo’s 70% interest. This represents the highest monthly average production achieved in 2022 and a 13% increase over the monthly average during Q3 2022.
These increased production levels demonstrate the positive impact of the successful implementation of the initial phases of the Enhancement Plan.
Corresponding net gas production for October was 7.7 MMscf/d with liquids production of 325 bopd. This represents the highest monthly average achieved for liquids in 2022, and a 27% increase over the levels achieved in January 2022, as the Company has prioritised liquids production given current commodity markets.
The Company looks forward to continuing to update shareholders on further operational progress.
For further information, please contact:
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Echo Energy Martin Hull, Chief Executive Officer
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via Vigo Communications |
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Vigo Consulting (IR & PR Advisor) Patrick d’Ancona Finlay Thomson
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+44 (0) 20 7390 0230 |
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Cenkos Securities (Nominated Adviser) Ben Jeynes Katy Birkin
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+44 (0) 20 7397 8900 |
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Arden Partners plc (Corporate Broker) Simon Johnson (Corporate Broking) John Llewellyn-Lloyd (Corporate Finance)
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+44 (0) 20 74614 5900 |
Note
The assignment of Echo’s 70% non-operated participation in the Santa Cruz Sur 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.
bopd means barrels of oil per day; boe means barrels of oil equivalent; MMscf means million standard cubic feet of natural gas; and MMscf/d means million standard cubic feet of natural gas per day.
Certain of the information contained within this announcement is deemed by the Company to constitute inside information as stipulated under The Market Abuse Regulation (EU 596/2014) pursuant to the Market Abuse (Amendment) (EU Exit) Regulations 2018. Upon the publication of this announcement via a Regulatory Information Service (“RIS”), this inside information is now considered to be in the public domain.
Echo Energy #ECHO CEO interview – Alan Green talks to Martin Hull
Echo Energy #ECHO CEO interview – Alan Green talks to Martin Hull, an oil and gas exploration, development and production company with onshore assets in Argentina. Martin provides an overview of the company’s activities, before looking at the recent move into renewable with the Chilean Solar project. We then look at the transformation that took place in 2021, with the ramp up in oil and gas production at the Company’s Santa Cruz Sur asset portfolio, and examine the upcoming well intervention programme that will ramp up production volumes in 2022. We look at the macro picture for commodity and energy prices, before Martin talks about ECHO’s financial position following the recent fund raise. Martin finishes by summarising upcoming milestone events for the first half of 2022.
Echo Energy #ECHO – Alan Green talks to CEO Martin Hull.
Echo Energy #ECHO – Alan Green talks to CEO Martin Hull.
– Santa Cruz Sur portfolio of #oil assets in #Argentina
– VAT refunds and bond restructuring
– Near 50% increase in liquids production
– Blue sky projects
Twitter: https://twitter.com/Brand_UK | Facebook: https://www.facebook.com/brandcommsuk | LinkedIn: https://www.linkedin.com/in/alangreenbranduk/
#ceo #oil #gas #interview #echoenergy
Echo Energy #ECHO – Operational Update – Liquid Production Increases
Echo Energy, the Latin American focused upstream oil and gas company, is pleased to provide an operational update regarding its Santa Cruz Sur assets, onshore Argentina, for Q3 2021 until 23 August 2021.
Operational Update
The Company is pleased to confirm that following installation of the pipeline required to bring back online the liquids production which was shut in April 2020, the infrastructure has now been successfully commissioned for operation and shut-in wells are being brought online. This follows an upgrade of the electrical infrastructure, which was designed to support the first tranche of production from the Campo Molino and Chorillos oil fields to provide sufficient power to support sustained production from the associated ten wells. These upgrades are also part of the Company’s strategy to control critical infrastructure previously rented from contractors.
To date, the Campo Molino oil field has been brought back online with four of the shut-in wells now back in operation and producing from the Springhill reservoir. This first tranche of restored production will increase the number of active producing oil wells at Santa Cruz Sur to 18.
As of 23 August 2021, the recently reactivated wells have contributed to an almost 50% increase in total liquids production at Santa Cruz Sur compared to the period immediately prior to this (281 bopd gross, 197 bopd net to Echo – during the period 1 -17 August 2021). This represents an increase of 137 bopd gross, 95 bopd net to Echo and work continues to bring the remainder of the first tranche of shut-in production back online. The production levels from the initial reactivated wells indicate that the shut-in period has not had a detrimental impact on reservoir behaviour in the Campo Molino oil field. Prior to shut-in, the combined gross production from the ten oil wells was approximately 138 bopd gross, 96 bopd net to Echo, approximately the same level now being achieved from the initial four wells, with the associated upgraded infrastructure.
Daily operations across the asset base in Santa Cruz Sur continue with the delivery of produced gas to industrial customers under contract with premium winter pricing being achieved. Production over the period from 1 January 2021 to 23 August 2021 reached an aggregate of 381,243 boe net to Echo, which included 48,211 bbls of oil and condensate and 1,998 mmscf of gas.
Martin Hull, Chief Executive Officer of Echo Energy, commented:
“During Q3 2021 we have continued to make significant operational progress and deliver against our objectives. Successfully increasing our liquids production is an important milestone. There remain further production upsides as we continue through the programme of reopening previously shut-in wells. Increased production combined with the continuing marked upswing in global commodity prices materially increases our cashflows enabling reinvestment to further drive growth. The ongoing production increases have been achieved while maintaining our careful cost management in order to maximise value for shareholders.”
For further information, please contact:
| Echo Energy
Martin Hull, Chief Executive Officer
|
via Vigo Communications |
| Vigo Consulting (IR & PR Advisor)
Patrick d’Ancona Chris McMahon
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+44 (0) 20 7390 0230 |
| Cenkos Securities (Nominated Adviser)
Ben Jeynes Katy Birkin
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+44 (0) 20 7397 8900 |
| Shore Capital (Corporate Broker)
Jerry Keen |
+44 (0) 20 7408 4090 |
Note
The assignment of Echo’s 70% non-operated participation in the Santa Cruz Sur 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. boe means barrels of oil equivalent; bopd means barrels of oil per day; boepd means barrels of oil equivalent per day; MMscf means million standard cubic feet of gas.
Certain of the information contained within this announcement is deemed by the Company to constitute inside information as stipulated under The Market Abuse Regulation (EU 596/2014) pursuant to the Market Abuse (Amendment) (EU Exit) Regulations 2018. Upon the publication of this announcement via a Regulatory Information Service (“RIS”), this inside information is now considered to be in the public domain.
Echo Energy #ECHO – Operational Update – Q2 Update 2021
Echo Energy, the Latin American focused upstream oil and gas company, is pleased to provide an operational update regarding its Santa Cruz Sur assets, onshore Argentina, for Q2 2021 until 14 June 2021.
Operational Update
The Company is pleased to confirm that following fabrication, installation of the pipeline infrastructure required to bring back online the liquids production previously shut in April 2020 is now complete. The schedule has been delivered in line with the timeline anticipated in the Company’s announcement of 24th February 2021.
It is expected that the first tranche of production to be brought back online will be from ten wells in the Campo Molino and Chorillos oils fields. This work to bring the initial production back online is expected to take around 15 days. When these wells were last online, the combined gross production was approximately 138 bopd gross, 96 bopd net to Echo.
This first tranche of restored production will increase the number of active producing oil wells at Santa Cruz Sur to 18. Subsequent tranches of production when brought back online should increase this active oil well stock to around 35. The programme of work to bring online the subsequent tranches of wells will be optimised both to maximise cost efficiencies and accelerate production increases.
Increasing liquids production represents delivery upon the Company’s strategy to leverage the marked upswing in global commodity prices. It is expected that the additional liquids production will contribute to a material cashflow increase.
The Company is additionally pleased to confirm that since 1 May 2021 gas production has been sold under the previously announced new gas sales agreements, with the significantly increased winter pricing. Gas volumes not sold under long term contracts are sold to the spot market.
In May 2021, the company sold a total of 18 MMscf to the spot market at an average price of $US 5 per mmbtu representing a 151% in prices compared to the March 2021 average spot price.
Daily operations in the field at Santa Cruz Sur continue with the delivery of produced gas to customers as expected. Production over the period from 1 January 2021 to 14 June 2021 reached an aggregate of 278,600 boe net to Echo, which included 33,910 bbls of oil and condensate and 1470 mmscf of gas.
Martin Hull, Chief Executive Officer of Echo Energy, commented:
“As we have moved into mid 2021, Echo has continued to deliver on its promises, with the pipeline infrastructure delivered to schedule. We are now moving into a phase of increasing liquids production enabling Echo to benefit from the upswing in global oil prices and the improved macro-outlook as demonstrated by our increased frequency of oil sales. Against this global backdrop, domestic spot market gas prices have also risen markedly, and we have been able to take advantage of this improving domestic situation. With improved economic tailwinds and new infrastructure installed in the field, we will have additional capacity to commission incremental enhancement projects within the portfolio. The increasing cashflows are expected to enable further production investments to be funded from operations. These preparations to take advantage of identified material organic growth options demonstrate Echo’s commitment to and confidence in its growth strategy in the Santa Cruz Sur assets . Our clear focus remains on creating value for our shareholders and we continue to progress opportunities to do that across the portfolio connected by our enhanced infrastructure.”
For further information, please contact:
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Echo Energy Martin Hull, Chief Executive Officer
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via Vigo Communications |
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Vigo Communications (PR Advisor) Patrick d’Ancona Chris McMahon
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+44 (0) 20 7390 0230 |
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Cenkos Securities (Nominated Adviser) Ben Jeynes Katy Birkin
|
+44 (0) 20 7397 8900 |
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Shore Capital (Corporate Broker) Jerry Keen |
+44 (0) 20 7408 4090 |
Note
The assignment of Echo’s 70% non-operated participation in the Santa Cruz Sur 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. boe means barrels of oil equivalent; bbl/d means barrels of oil per day; boepd means barrels of oil equivalent per day; MMscf mean million standard cubic feet of gas; MMscf/d means million standard cubic feet of gas per day.
Certain of the information contained within this announcement is deemed by the Company to constitute inside information as stipulated under The Market Abuse Regulation (EU 596/2014) pursuant to the Market Abuse (Amendment) (EU Exit) Regulations 2018. Upon the publication of this announcement via a Regulatory Information Service (“RIS”), this inside information is now considered to be in the public domain.
Echo Energy #ECHO – Operational and Commercial Update Q1 2021
Echo Energy, the Latin American focused upstream oil and gas company, is pleased to provide an operational and commercial update regarding its Santa Cruz Sur assets, onshore Argentina, for the quarterly period ended 31 March 2021.
Operational Update
Daily operations in the field at Santa Cruz Sur continue with the delivery of produced gas to customers as expected and without interruption. Production over the period from 1 January 2021 to 31 March 2021 reached an aggregate of 152,673 boe net to Echo, which included 17,814 bbls of oil and condensate and 809 mmscf of gas.
As a result of a series of optimisation activities being implemented in the field around the current production, average net daily liquids production in March 2021 increased to 230 bbls/d, a 24% increase over production in February 2021.
The Company is pleased to confirm that the materials required for the infrastructure upgrades of 23 km of pipeline, announced on 24 February 2021, are now being fabricated by the supplier in Buenos Aires following contract execution and the installation schedule remains in line with that announcement.
Commercial Update
Domestic energy demand in Argentina has continued to improve through 2021 to date and the Company has recently sold a significant domestic cargo of 8,812 bbls of oil net to Echo, at the Punta Loyola terminal, with a price linked to the Brent benchmark subject to typical local discount. Following this sale, net oil stock at the Punta Loyola terminal (excluding inventory in field tanks) is currently 4,237 bbls.
Following the Company’s announcement of 24 March 2021, relating to new gas sales contracts for 2021-2022, the Company has now agreed summer and winter pricing for its annual industrial clients, with the contracted winter premium providing substantially increased cashflow in the near term for future operations and production enhancement work programmes. For the committed production over the key southern winter period (May to September), the Company will sell natural gas at an average price of $3.52 per mmbtu, which compares to $1.35 per mmbtu for industrial clients the previous year.
Martin Hull, Chief Executive Officer of Echo Energy, commented:
“Advancing into 2021, Echo has been set on optimising its existing production portfolio and low-risk development upside across the Santa Cruz Sur asset base. The benefits of these earlier efforts are now being seen. Additionally, I am pleased to report that Echo continues to benefit from increasingly strong local energy demand and pricing, which has led us to obtaining premium seasonal pricing to current prevailing spot market prices, and more than double the price of the previous winter period. Against this improving domestic energy price backdrop, we have also executed a significant domestic oil cargo sale which marks an important milestone linked to the improved economic outlook.
Furthermore, we are pleased with the progress we are making on our production optimisation activities across Santa Cruz Sur. Liquids production has recently increased in advance of the upgrades to the 23 km pipeline infrastructure which are progressing at pace. These upgrades will not only unlock previously shut-in liquids production but will also provide additional capacity with which to open up future incremental enhancement projects that have already been identified.”
For further information, please contact:
| Echo Energy
Martin Hull, Chief Executive Officer
|
via Vigo Communications |
| Vigo Communications (PR Advisor)
Patrick d’Ancona Chris McMahon
|
+44 (0) 20 7390 0230 |
| Cenkos Securities (Nominated Adviser)
Ben Jeynes Katy Birkin
|
+44 (0) 20 7397 8900 |
| Shore Capital (Corporate Broker)
Jerry Keen |
+44 (0) 20 7408 4090 |
Note
The assignment of Echo’s 70% non-operated participation in the Santa Cruz Sur 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. boe means barrels of oil equivalent; bbl/d means barrels of oil per day; boepd means barrels of oil equivalent per day; MMscf mean million standard cubic feet of gas; MMscf/d means million standard cubic feet of gas per day.
Certain of the information contained within this announcement is deemed by the Company to constitute inside information as stipulated under The Market Abuse Regulation (EU 596/2014) pursuant to the Market Abuse (Amendment) (EU Exit) Regulations 2018. Upon the publication of this announcement via a Regulatory Information Service (“RIS”), this inside information is now considered to be in the public domain.
Echo Energy #ECHO – New gas contract wins for 2021-2022 significantly above 2020 annual pricing and current spot price
Echo Energy, the Latin American focused upstream oil and gas company, is pleased to provide a commercial update regarding the Company’s gas sales from the producing Santa Cruz Sur assets, onshore Argentina.
The Company confirms that, following a successful auction process for industrial clients, it has secured two new gas sales contracts at significant premiums to both prevailing spot market rates and 2020 contracted rates (the “Contracts”).
The Contracts have a term of 12 months, with gas sales beginning in May 2021, and provide for a 126% increase over annual industrial contract pricing previously achieved by the Company in May 2020 and a 39% premium above current local spot price.
The Contracts provide gross 6.5 MMscf/d of committed production, 4.6 MMscf/d net to Echo, at an average price of $2.64 per mmbtu, with the Company able to elect to sell additional volumes of up to 1.9 MMscf/d net to Echo under the Contracts. This optionality, at the election of the Santa Cruz Sur partners, provides flexibility to respond to market conditions including rising spot prices.
As a result of the Contracts, a minimum of approximately 70% of gross daily gas production from Santa Cruz Sur allocated to industrial customers will now be committed under secured contracts until April 2022.
Martin Hull, Chief Executive Officer of Echo Energy, commented:
“We have previously commented on the improving market conditions for our business as commodity prices increase, and the Company’s ability to secure these new contracts with industrial customers via a competitive auction process reflects the increasingly supportive commercial environment. It is encouraging to now go further and see the improved market conditions translate to tangible improvements in future revenue We believe that as a result of these agreements, our contracted gas USD revenues for the year could be as much as [50] per cent higher when compared to May 2020 to April 2021, meaning they will deliver a material improvement in cashflow during 2021. We continue to pursue an innovative and flexible commercial strategy, enabling Echo to secure this type of premium pricing. These contracts also confirm that the Company is viewed as a reliable and attractive supplier to the Argentine industrial sector, and can achieve strong pricing for our output.”
For further information, please contact:
| Echo Energy
Martin Hull, Chief Executive Officer
|
via Vigo Communications |
| Vigo Communications (PR Advisor)
Patrick d’Ancona Chris McMahon
|
+44 (0) 20 7390 0230 |
| Cenkos Securities (Nominated Adviser)
Ben Jeynes Katy Birkin
|
+44 (0) 20 7397 8900 |
| Shore Capital (Corporate Broker)
Jerry Keen |
+44 (0) 20 7408 4090 |
Note
The assignment of Echo’s 70% non-operated participation in the Santa Cruz Sur 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. MMscf/d means million standard cubic feet of gas per day; and Mmbtu means million British thermal units.
The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as amended by the Market Abuse (Amendment) (EU Exit) Regulations 2019/310. Upon the publication of this announcement, this inside information is now considered to be in the public domain.