The companys view of the project is influenced by recent improvements to local infrastructure and prevailing gas pricing in the region.
Monte Aymond project, which is located some 5.2 kilometres from the companys Palermo Aike licence area, is host to historic wells which were drilled successfully in the mid-1980s.
It is envisaged that an existing well will be worked-over to target the Springhill reservoir structure, seen in 3D seismic data.
A previously abandoned well discovered, tested and produced gas and condensate. The well initially flowed 2.4mln cubic feet of gas per day during testing and subsequently produced for ten months at 5mln cubic feet per day.
Echo noted that a 2019 concept study looked at a possible 2.6 kilometre connection to gas processing facilities across the border in Chile, at a gross cost of US$570,000 – allowing economic payback over three months, based on benchmark prices of US$42 per barrel oil and US$3.5 per mmbtu gas.
The company has now launched a feasibility study to explore the option for micro-LNG at Monte Aymond, to enable gas sales directly to customers in remote areas via truck transportation. It noted that this creates the potential for materially higher sales prices.
Chief executive Martin Hull described the project as being “of great interest” highlighting that it requires only limited amounts of capital and presents limited technical risk.
“Echo Energy is once again entering a phase of enhanced activity as we progress various workstreams to deliver maximum value from our existing portfolio with a balanced risk-reward ethos, ensuring prudent financial management while also keeping our options open to further opportunities in the region," Hull said.
Other options being considered include the development of Monte Aymond as part of a hub development, via the aggregation of the volumes of both Campo Limite and Monte Aymond assets.
At Campo Limite testing of the CLix-1001 well is due to Read More – Source