Echo Energy upgrades to the workover rig successfully completed

Echo Energy plc (LON:ECHO), the Latin American focused energy company, has provided an operational update regarding further progress in the execution of the Santa Cruz Sur assets production and infrastructure enhancement plan first announced by the Company on 7 July 2022.

Upgrades to the workover rig owned by the Santa Cruz joint venture partners have now been successfully completed.

As previously announced, the Enhancement Plan is targeting a total of approximately 30 or more wells with interventions to commence on mobilisation of the workover rig to the field. The scheduling of activities, on a well-by-well basis, remains dependent on the availability of materials required for individual well interventions and operational activities, including the timing of the future mobilisation of the now upgraded workover rig, will also be optimised from cash flow at the asset level in order to maximise the benefit of funds available.

Detailed scheduling and optimisation of the well re-opening programme under the Enhancement Plan has been undertaken and three additional oil wells have been identified which do not require the mobilisation of the workover rig. These wells have been offline for four years due to surface constraints. However, recently completed infrastructure upgrades have now removed these constraints and enable these wells to now be reactivated with the objective of bringing them back into production.

These three additional wells will be prioritised by the Santa Cruz Sur partners in  seeking to further increase liquids production from the Chorillos field. This three well programme has now commenced and operations are expected to take around three weeks.

Following the previously announced successful completion of the first phase of the Enhancement plan focused on the power generation facilities, the already commenced programme to upgrade compressor capacity across the Santa Cruz Sur assets remains ongoing. Efforts continue to optimise the balance between maximising production and cashflow, minimising disruption and shortening the time required to complete the upgrades.      

Production at Santa Cruz Sur in the first month of Q4 2022 has been strong with average daily production in October of 1,610 boe, net to Echo’s 70% interest. This represents the highest monthly average production achieved in 2022 and a 13% increase over the monthly average during Q3 2022.

These increased production levels demonstrate the positive impact of the successful implementation of the initial phases of the Enhancement Plan.

Corresponding net gas production for October was 7.7 MMscf/d with liquids production of 325 bopd. This represents the highest monthly average achieved for liquids in 2022, and a 27% increase over the levels achieved in January 2022, as the Company has prioritised liquids production given current commodity markets.

Echo Energy looks forward to continuing to update shareholders on further operational progress.

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