Fracción D holds significant development, appraisal and exploration potential with a proven gas cap in place.

The block benefits from existing production facilities and an initial level of production from the Cañadón Salto field, in close proximity to existing infrastructure.


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Overview 

  • Area: 280 km2
  • Status: Concession
  • Effective Date: 1st January 2018
  • Licence Expiry: 13th November 2027

 

  • Gross 2P & 2C Reserves & Resources: 30.7 Bcfe Pmean (Gaffney Cline & Associates)
  • Interest: Echo Energy 50%
  • Seismic Available:
    • 2D: Excellent Coverage

Work Programme

The work programme will include exploration, appraisal and production of resources utilising existing production facilities and a new 28km pipeline for increased gas production. Echo will be the technical operator of the licence over an initial 18-month phase with the option to extend.

  • Workover of 3 wells
  • Drilling, testing and completion (upon success) of 1 contingent well
  • 3D Seismic Acquisition: 230 KM2 (contingent)

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Partnership

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

 

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Permit Area

Fracción D sits on the eastern coast of the Santa Cruz region approximately 55 km north of Rio Gallegos.

The licence extends across an area of 280 km2 with oil production facilities already in place. Fracción D includes the existing Cañadón Salto field which is currently oil producing.

Existing wells are focused on the oil leg. This opens up significant opportunities for appraisal and development of identified gas volumes.  

These additional, low risk opportunities could unlock over 100 Bcf of high value natural gas.

Petroleum Geology

Five gas prospects have been identified within the permit area lying at depths of around 1,300 metres below sea level. 

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Local Infrastructure

Current production facilities in place facilitate the production and transportation of oil via tanker trucks.
The major San Martin pipeline which transports natural gas to Buenos Aires lies to the east, running through an adjacent block.

The presence of more than 10 Bcf of gas initially in place would enable the sanctioning of a 28km link pipeline to a nearby gas entry point.

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Upside Potential

Within Fracción D Echo has identified significant development, appraisal and exploration potential, both on the Cañadón Salto field and across the licence. The company initially estimates the block to hold up to 90.5 Bcfe Pmean, gross unrisked prospective resources, (62.4 Bcfe mid-case, 187.5 Bcfe high-case). Gaffney Cline & Associates.

Future plans for the block include an initial workover of 3 existing wells and the drilling, testing and completion of another well subject to results arising from the initial workovers. Satisfactory results from workovers will also lead to the acquisition of 230 km2 of 3D seismic.