Amerisur Resources, Echo Energy, Range Resources
Amerisur has announced this morning that the Pintadillo-1 discovery well is ahead of expectations and will pay back in ‘under a year ‘. The T sand interval has flow tested under natural flow at 590 b/d of light 30.4 API crude oil under a choke of 18/64” with strong wellhead pressure of 110 psi. Water cut is only 1% and decreasing and an interval of 9 feet was perforated within the 15 feet of net pay. Oil is being evacuated through the OBA pipeline and add to production soon.
There are two important points to add, firstly the company will now remap the T and U sands assessing the potential for more wells from the Pintadillo pad in the future. Secondly, at present no T or U sand reserves are attributed but they will be included after a production history is established. AMER has had a rough time lately but this is a welcome piece of genuinely good news with potentially a lot more to come.
An operational update from Argentina as Echo progresses well and announces that pulling jobs/well intervention have now been completed in four oil wells in the Fraccion D, Canadon Salto field in order to increase field production. The four wells are now being commissioned with the first, CSo-96 well now connected for production with the rest to follow shortly.
The company are able to say that ‘successfull completion of well intervention activity has meant that the first well in the series is already been hooked up and contributing to production and the remaining wells are expected to come on line in the coming month ‘. The remaining contracted time will be used to perform an initial inflow test at the EMS-1001 well following additional cementing operations in the well bore.
This is a positive statement from Echo as it moves fast and efficiently in these areas as well as being close to seismic acquisition on Tapi Aike the potential jewel in the crown. Within a couple of weeks I expect an update on production added after rates stabilise, COO Geoff Probert, an industry legend is in the field handing activities which is very comforting.
Range has announced its annual report with some very good news on production but a disappointing miss on year end production targets. The good news is that production is up 25% at 650 b/d with revenues up 55% at 13.1m, the realised oil price was up to $55 and opex down 43% to $26 pb. The positive steps that the company has taken bode well for the longer term but there is a short term cost to pay.
The infrastructure upgrade programme is running behind its original schedule and accordingly the previous production target of 1/- b/d by the end of this year will slip into 2019. Clearly this is a disappointment but the company is focusing in the short term on getting the work done enabling the drilling programme to continue.