Echo has announced that the CLM x-1 well has drilled to 2,513m and that logging has been completed. On the basis of ‘encouraging ‘ data a positive decision has now been made to move to the next stage of operations to complete and test the well.
The primary target was successfully encountered at 2,181m with two cores taken and will be analysed further but the lower of the cores showed a well developed fine-grained sand in the bottom ten metres. The upper and lower secondary targets were both encountered with the lower demonstrating el3vated gas shows indicating that the measurement system had become saturated as a result of the inflow of gas.
The company has released plenty of initial data but correctly caution that while the presence of gas shows in target sections has resulted in the company and operator taking the decision to move to completion and testing ‘gas shows can be a result of various processes ‘. As a result caution should be needed to conclusively establish the presence of producible gas. However this looks extremely promising given the information we have so far and whilst caution is clearly the watchword shareholders can remain optimistic about the Tapi Aike after this first well. The rig now moves to the Santa Cruz Sur to spud in the next few days.
Confirmation today that PetroTal is paying the dividend promised at the time of the placing in May. The company has declared an interim dividend of 0.1p being a third of the envisaged total the remainder coming with the final results in April. The yield is intended to give an annualised yield of around 4% based on the placing price of 15p.
CEO Manolo Zuniga releases a confident statement saying that operations in Bretana have exceeded expectations and is ‘delighted to share that success with dedicated shareholders ‘.