Echo Energy preps for stimulation programme at Argentine asset

Echo Energy plans to launch a two-well stimulation programme at one of its Argentine assets within the next "three to four weeks".

The AIM-listed explorer, which has already drilled four wells across its onshore portfolio in the South American nation in 2018, revealed that two of recently drilled wells within the Fracción C licence had been successful.

Echo will follow up with a programme of stimulation, before shifting its focus on to well testing.

Equipment required to stimulate the wells is expected to be made available to the group at the beginning of December.

In other news, Echo revealed that production levels at Fracción D had been "stable" at around 876 barrels of oil per day thanks to a recent series of workovers, while in the Tapi Aike area, it intends to start an exploration drilling programme during the second half of 2019.

Echo said: "The company believes that the Tapi Aike licence offers a compelling proposition with a likely 4 well drilling programme targeting multi Tcf potential with each well estimated to cost between $2M and $5M net to Echo."

As of 0930 GMT, Echo shares had ticked up 1.12% to 7.23p.