LONDON (ShareCast) - (Sharecast News) - Upstream oil and gas firm Echo Energy on Friday announced its intention to accelerate its drilling programme at the Fraccion D asset following a successfully extended test on well CSo-85.
The AIM traded company said it will drill the CSo 111-I well at the asset, targeting a total gross prospective resource of 18.8bn cubic feet of gas, confirming existing contingent resources of 19.0bn cubic feet.

The decision to drill the CSo 111-I well effectively substitutes the firm's plan to drill the Los Joquines well which will now be targeted as the first well in the second phase of exploration drilling.

Fiona MacAulay, chief executive of Echo, said: "We are delighted to be able to advance the drilling of CSo 111-1 well, as this will greatly enhance our understanding of the developable asset base in Fracción D and enable the optimised design of pipeline and processing facility capacities."

Success on the well would increase the likelihood of Echo Energy making an early decision on future gas development at Fraccion D.

The CSo-85 well, meanwhile, saw its workover completed at the Fraccion D asset, in joint venture between Echo and its Argentine partner Compañía General de Combustibles S.A.

"The recent positive results from the extended testing at CSo-85 of the Springhill reservoir, mean that prior to sanction of any development plan the company and its partner would like to understand the potential scale of development including contribution of gas from the Tobifera formation," said MacAulay.

As of 1453 BST, Echo Energy's shares were up 1.50% at 11.87p.

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