President, Echo Upbeat about Argentina (Update)
Two UK-listed juniors with interests in Argentina have presented upbeat announcements about their interests there.
AIM-listed President Energy said April 16 it will drill three to four wells starting June 2018 at its Estancia Vieja gas field, starting June 2018, the results of which will help President determine how best to market the gas. This follows commercial gas flows at its recent tests on Estancia Vieja, announced a month ago.
President also said it will begin a $3mn, six to eight well workover at its Puesto Flores oil/gas concession next month, followed by a three-well drilling programme there in 3Q 2018. President has a 90% operating interest in Puesto Flores/Estancia Vieja, in the onshore Neuquen Basin where the Vaca Muerta shale is.
AIM-listed Echo Energy, announcing 2017 results on April 16, also listed its acquisition of a 50% working interest across four onshore blocks in the Santa Cruz province, in southern Argentina with Compania General de Combustibles (CGC) completed January 3 2018 among its recent highlights. It said the four blocks have gas-in-place (gross at 100%, unrisked) of up to 4.8 trillion ft3, and will be conducting a four-well exploration campaign there starting next month. Also a three-well workover on its Fraccion D (one of the four blocks) has begun; initial results will be disclosed during May and June 2018, the firm said.
Echo’s full year loss in 2017 was £7.5mn ($10.7mn), up slightly from its 2016 net loss of £6.4mn.
Update April 18: Echo said it sold its first export cargo of oil from Argentina's Fraccion C & D, which loaded last weekend, to Vitol at a $6/bl discount to Brent. It also said that its 1Q2018 gas sales from Argentina (245.1mn ft3 net to Echo) were sold into the local market at an average realised price of US$4.21/mn Btu. In addition 81.5mn ft3 were produced at the wellhead and used as fuel and power. Total sales receipts net to Echo before royalty, tax and operating expenses for Q1 2018 are expected to be $2.7mn.