Fracción C, which surrounds the Laguna de los Capones licence, is the largest of Echo's Argentinian assets. The block benefits from existing production facilities and a gas export pipeline connecting directly to the main pipeline to Buenos Aires.

On top of existing gross production, exceeding 10 million cubic feet of gas equivalent per day, the block holds significant multi Tcf exploration potential.


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Overview

  • Area: 5,288 km2
  • Status: Concession
  • Effective Date: 1st January 2018
  • Licence Expiry:
    • 18th April 2026 (Laguna de los Capones)
    • 13th November 2027 (Fracción C)

 

  • Gross 2P & 2C Reserves & Resources: 47.6 Bcfe (Gaffney Cine & Associates) 
  • Interest: Echo Energy 50%
  • Seismic Available:
    • 2D: Extensive Coverage
    • 3D: 1200 km2
  • Production Facilities: 3
  • Existing Gas Export Pipelines
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Work Programme

The initial work programme is designed to include exploration, appraisal and production, in which Echo will be the technical operator.

  • 3D seismic reprocessing (Laguna de los Capones)
  • 3D seismic acquisition in Fracción C: 500 km2
  • Drilling and completion of 4 exploration wells with the first well ELM 1004 spud in May 2018.

 Partnership

  • CGC - Compañía General de Combustibles S.A. (50% Interest)

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Permit Area

Fracción C surrounds the Laguna de los Capones licence and lies along the eastern coast of the Austral basin, approximately 60km northwest of Rio Gallegos.

Fracción C is the largest of Echo's assets and covers an area of 5,288 km2.

The licence areas include the existing gas fields of Campo Bola, Laguna de los Capones and Ototel Aike, and the oil fields of Estancia la Maggie and Laguna Maria. Existing net production is 5.4 MMscfe per day.

Petroleum Geology

Seven drill ready prospects have been identified targeting the Springhill and the Serie Tobífera with a combined 2P and 2C net reserves and resources of 23.8 Bcfe. Unrisked gross prospective hydrocarbons initially in place are estimated at 1.3 Tcfe (Pmean).

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Local Infrastructure

  • 3 underutilised production facilities already in place within the licence area.
  • Existing gas export pipelines are present including the main San Martin natural gas trunkline delivering gas to Buenos Aires.
  • Campo Bola production facility has a capacity of 35 million cubic feet per day however is only utilised at 16.5%.

 

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Upside Potential

On top of existing production, Fracción C and Laguna de los Capones offer an exciting low risk, low cost, appraisal and exploration opportunity in which the company estimates to hold up to 1.3 Tcfe Pmean, unrisked hydrocarbons initially in place (0.9 Tcfe mid-case and 2.5 Tcfe high case), in a combination of oil and gas prospects (Gaffney Cline & Associates).

Echo plans to continue exploration through reprocessing of the existing Laguna de los Capones licence as well as further acquisition of 3D seismic (500 square kilometres) in the Fracción C licence. This will be followed by the drilling and testing of 4 exploration wells on the Fracción C licence and their completion as producing wells following success.