LONDON (ShareCast) - (Sharecast News) - Echo Energy has identified "significant hydrocarbons" in the EMS-1001 onshore well on the Fraccion C licence in Argentina, the company told investors on Thursday.
The AIM traded upstream oil and gas firm said the significant gas and hydrocarbon shows were recorded in the drilling of the well to a depth of 2,460 metres, cutting through the Upper Jurassic Tobifera formation.

The formation was encountered between depths of 1,722 metres and 2,220 metres, possibly indicating that the well hit a 500-metre oil column.

Fiona MacAulay, chief executive of Echo Energy, said: "We are delighted that initial interpretation of our third well suggests a material and potentially transformational light oil column in the emerging Tobifera play of the basin, exceeding our high case expectations. We can already consider results for this well to date to be very encouraging from a volumetric and value perspective."

With a testing rig due to arrive in July, the well is now being completed and suspended before the commencement of a testing programme.

"Testing is the critical next step to establish the effectiveness and deliverabilty of the reservoir and we caution that any conclusions prior to test results would be premature. The company will now take the time required to confirm the early interpretation of the wireline logs and design an effective test program with a view to confirming the scale of our new oil discovery," said MacAulay.

In the meantime, the drilling rig is to move on to the Fraccion D asset where the fourth and final well of Echo Energy's current drilling campaign is located.

As of 1117 BST, Echo Energy's shares were up 20.65% at 14.90p.

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