Echo Energy positive on production at Santa Cruz Sur

Latin America-focussed upstream oil and gas company Echo Energy updated the market on production from its recently-acquired 70% non-operated working interest in the Santa Cruz Sur assets, onshore Argentina on Wednesday.

The AIM-traded firm said average net daily production, net to Echo's 70% interest, from Santa Cruz Sur for the period from 1 November - the effective date of the acquisition - to 31 January was 2,481 barrels of oil equivalent per day, including 560 barrels of oil and condensate per day and 11.5 million standard cubic feet of gas per day.

Total production from Santa Cruz Sur in the period net to Echo was 228,249 barrels of oil equivalent, including 51,561 barrels of oil and condensate and 1,060 million standard cubic feet of gas.

During the period, an aggregate of 165 net million standard cubic feet of gas produced at the wellhead was used in the field for fuel and power.

Between 1 November and 31 January, there were a total of four cargo liftings of oil and condensate, of an aggregate of 27,082 barrels net to Echo, with an average sales price - including, where applicable, VAT recovery - of $52.1 per barrel of oil equivalent.

In addition, the company said a fifth cargo of oil and condensate, of more than 15,000 barrels of oil equivalent net to Echo, was currently in the process of being loaded at port, and was expected to be completed in the coming days.

Delivery of produced gas to customers had continued without interruption, at an average realised price, reflective of the current season of $2.21 per million British thermal units.

“As is typical of the Argentina gas market current summer gas prices are at a discount to annual averages,” the Echo board said in its statement.

“The company expects to achieve higher realised prices in winter months.”

The firm said it was “looking forward” to updating shareholders on testing operations at the Campo Limite well at Santa Cruz Sur, which was expected to begin in the second half of February, and on the results of the Campo La Mata x-1 well at Tapi Aike in due course.

At 1514 GMT, shares in Echo Energy were up 21.62% at 2.25p.