The Company confirms that daily gas production has materially increased in the Oceano field, following a successful facilities maintenance and upgrading programme focussed on improvements in efficiency, reliability and load capacity of the gas facilities at Oceano, which delivers gas to residential suppliers. As part of the Company’s plan to increase production, the Oceano field was temporarily shut-in in April 2022 to allow for maintenance and upgrades to the compressor and associated infrastructure.
In Q1 2022, the Oceano field produced an average of 1.72 MMscf/d of gas (net to Echo) and is now producing at an average rate of 2.63 MMscf/d of gas (net to Echo) over the 12 days following the maintenance and upgrades. This represents an increase of 53% in daily gas production at the Oceano field and markedly exceeds the Company’s expectations prior to the operations being undertaken.
Following post-maintenance commissioning, total average daily gas production (net to Echo) across the Santa Cruz Sur assets, for the 12 days prior to 21 May 2022, increased to 8.4 MMscf/d being a 14% increase over the average daily gas production levels achieved in Q1 2022.
As previously announced, the Company has identified an extensive programme of production enhancement opportunities across its portfolio of assets at Santa Cruz Sur, including infrastructure and facility improvements, well interventions and well workovers.
Martin Hull, Chief Executive Officer of Echo Energy, commented:
“The increase in production from the Oceano field is clearly encouraging and is a further demonstration of the significant potential that we believe exists within the Company’s Santa Cruz Sur assets. We continue our focus, as cashflow allows, on making targeted and cost effective investments to drive production performance and improving revenues in an environment of sustained elevated commodity prices. We remain committed to building value for our shareholders and look forward to reporting further progress”