Echo Energy

Echo has announced that its CLMx-1 well is a non-commercial gas discovery following completion of testing on the lower secondary target and the primary target.

The secondary Anita target, following perforation flowed at surface an estimated rate of up to 0.57 MMscf/d with an estimated average rate of 0.35 MMscf/d. The Anita target also yielded condensate with an API gravity of 50 degrees of 7.5-18 bbls/d in line with expectations. The primary target flowed up to 0.28 MMscf/d with no condensate.

The shallower Magallenes 60 (M60) interval is now under consideration with the objective including the M-40 interval as they may exceed the commercial threshold although the company stress that there can be no assurance that further testing and/or commerciality will follow.

Whilst the initial news is disappointing there has been discovery of a working petroleum system with flow of gas and condensate. The data recovered should be able to be used by the company to identify future drilling locations and the second Tapi Aike exploration well will spud in H2 2020. In the meantime the testing at CLix-1001 is expected to commence 2H February.