Echo Energy : Santa Cruz Sur Operational Update

RNS Number : 2419A

Echo Energy PLC

20 January 2020

20 January 2020

Echo Energy plc

("Echo" or "the Company")

Santa Cruz Sur Operational Update

Echo Energy, the La n American focused upstream oil and gas company, is pleased to announce that the Campo Limite explora on well (CLix-1001) in the Palermo Aike concession of Santa Cruz Sur has been drilled to a total measured depth ("MD") of 2,247 metres and wireline logging has now been completed.

On the basis of encouraging ini al data from drilling and logging opera ons, a decision has been made with the Operator, Selva Maria Oil and Gas S.A.*1 to move to the next stage of operations to complete and test the well.

The target Springhill Forma on was encountered at 2,124 metres. Ini al analyses of the wireline log data have been completed and have highlighted a zone of interest comprised of fine grained sandstones. This unit also coincided with elevated gas shows of 193,000 parts per million ("ppm") against a background of 20,000 ppm.

The presence of elevated gas shows in the target sec on combined with wireline log data is posi ve and has resulted in the Company and the Operator taking the decision to move to comple on and tes ng. The Company cau ons that comple on of the well test and analyses of the results is needed to conclusively establish the presence of producible gas.

The well will be completed by the Petreven H-205 rig followed by conven onal inflow tes ng with a workover rig. Mobilisation is currently being scheduled and further announcements will be made, as appropriate, in due course.

For further information, please contact:
Echo Energy	via Vigo Communications
Martin Hull, Chief Executive Officer
Vigo Communications (PR Advisor)	[phone]
Patrick d'Ancona
Chris McMahon
Cenkos Securities (Nominated Adviser)	[phone]
Ben Jeynes
Katy Birkin
Shore Capital (Corporate Broker)	[phone]
Jerry Keen

The informa on contained in this announcement has been reviewed by Echo Energy's Vice President, Explora on, Dr. Julian Bessa Msc, DPhil, a Fellow of the Geological Society and a Member of the Petroleum Explora on Society of Great Britain.

*1 IOG Resources S.A. and Interoil Argen na S.A. have completed a transac on with Roch S.A., the previous operator, to acquire a 21.66% interest and an 8.34% interest, respec vely, in the Santa Cruz Sur assets. Following these transac ons, the licence is operated by Selva Maria Oil and Gas S.A., whilst Interoil Argen na S.A. is a non-opera ng partner. Selva Maria Oil and Gas S.A. is a subsidiary of Integra Oil and Gas S.A., which has guaranteed the obliga ons of IOG Resources S.A. and Interoil Argen na S.A. under the transac on. Selva Maria Oil and Gas S.A. will remain Operator until Interoil Argentina S.A. is granted an operator licence from the Argentinian authorities.

Note

The assignment of Echo's 70% participation in the Palermo Aike licence is subject to the authorisation of the Executive Branch of Santa Cruz's Province, which is part of the overall process of title transfer that is proceeding as anticipated.

The informa on communicated within this announcement is deemed to cons tute inside informa on as s pulated under the Market Abuse Regula on (EU) No. 596/2014. Upon the publica on of this announcement, this inside information is now considered to be in the public domain.

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