Echo Energy (LSE:ECHO) released news on three developments this morning. Firstly, the Latin America focused company reported the signing of a Technical Evaluation Agreement (TEA) with Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) for the Rio Salado Block, onshore Bolivia. The work programme will include the interpretation of three 2D seismic lines, acquired in 2015 / 2016 which transect part of the block. These will be important in further refining the definition of a deep structure mapped across the Rio Salado and Huayco blocks.
At the end of the TEA period the Company will have the right to negotiate contract terms with YPFB for the licence should it elect to do so. Management estimates for Gas In Place are 1.75 TCF (mean) for the whole structure, this includes both blocks. The acquisition of an interest by Echo in Rio Salado is subject to final commercial terms being agreed. Echo also announced that it is continuing the Joint Evaluation Agreement with Pluspetrol regarding the Huayco block. The company has spent the past year reprocessing 3D data across Huayco and also part of Rio Salado.
The final piece of new from Echo concerns the EMS-1001 well in the Fraccion C licence. The Company has now perforated and performed inflow tests on two representative intervals and today reports that the results confirm they are suitable for mechanical stimulation. The rig is now off contract and has been demobilized following completion of all anticipated rig based activities. The company expects to return to EMS-1001 and to coordinate that activity with the planned stimulation of the ELM-1004 anticipated to commence by year end.