Page 15 - LatAmOil Week 27 2022
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LatAmOil                                    NEWS IN BRIEF                                          LatAmOil








       Following receipt of a second RAR on June   As previously announced, the successful  portfolios of well workover candidates in respect
       24, 2022, Touchstone has submitted a partial  upgrade to the compressor was an important  of Santa Cruz Sur resource/reserves not cur-
       response and will be meeting with the EMA to  and planned operational milestone and has  rently in production.
       clarify the remaining aspects to ensure that the  resulted in substantial increases to production   The additional producing wells will be sup-
       queries are addressed by the Company. Touch-  from the Oceano field since being being brought  ported by infrastructure upgrades to sustain
       stone will provide further feedback to the EMA  back on line, with the full impact expected to be  and contribute to elevated production levels.
       as appropriate following this meeting. The EMA  seen in future quarterly production figures.  Intended infrastructure upgrades under the
       has noted that a determination will be made   Santa Cruz Sur, Production and Infrastruc-  Enhancement Plan will be focused around three
       within thirty working days of receiving a com-  ture Enhancement Plan: The Company is addi-  operational priorities.
       plete response to the second RAR.   tionally pleased to announce that the Santa   The first is the installation of additional
         The EIA application was initially submitted  Cruz Sur joint venture partners have agreed to a  electrical power generation capacity across the
       on December 23, 2021, and pursuant to applica-  detailed plan to materially increase production  Cerro Molino Oeste, El Indio Oeste and Oceano
       ble legislation was to be determined by the EMA  at Santa Cruz Sur and to improve the quality of  fields. Installation is anticipated to take a month
       within 80 working days, unless extended while  sales liquids from the Santa Cruz Sur assets.  from commencement. A second set of planned
       the EMA seeks further information or clarifi-  Over a six-month period, anticipated to com-  infrastructure improvements will be focused on
       cations. The latest RAR represents the second  mence in Q3-2022, the Santa Cruz Sur partners  the maintenance and optimisation of the com-
       extended date from the EMA beyond the orig-  intend to seek to increase production by approx-  pressors at Cerro Norte and Campo Bremen to
       inal 80 working days review period.  imately 40% from the levels previously achieved  enable the increased volumes of associated gas
         As noted in the Company’s announcement  over H1-2022. If achieved, the Enhancement  to be processed and then sold into the main gas
       on June 27, 2022, the forecasted onstream date of  Plan would increase total daily production from  export line. This operation is anticipated to take
       the Cascadura facility will be established by the  Santa Cruz Sur to around 2,000 boepd, net to  approximately three months from commence-
       timing of receipt of the approved EIA applica-  Echo’s 70% interest in Santa Cruz Sur.  ment and will be carried out with the intention
       tion, and the Company will update stakeholders   Under the newly agreed Enhancement Plan,  of minimising any disruption to existing gas
       as appropriate.                     the Santa Cruz Sur partners will seek to increase  production, although some temporary impact
       Touchstone Exploration, July 6 2022  production levels through the recommission-  is expected.
                                           ing and bringing into production of existing oil   The third set of infrastructure upgrades will
       Echo Energy announces               wells currently offline. Around 30 or more wells  prioritise a substantial increase of quality of
                                           from the existing well stock are intended to be  Santa Cruz liquid blends. This will be achieved
       H1-2022 production and              gradually brought back into production over the  through the the installation of mercury removal
                                           six-month period utilising an existing pulling rig  facilities at Cerro Norte. When operational, this
       operational update                  and field personnel owned and employed by the  facility will enable premium export pricing to be
                                           Santa Cruz Sur joint ventures. The re-opening  achieved for a higher volume of liquids than is
       Echo Energy, the Latin American-focused  of the existing wells could increase production  currently the case.
       energy company, has provided an operational  levels by up to circa 240 bpd of oil of liquids and   During H1-2022, the higher-quality export
       update regarding its Santa Cruz Sur assets,  2 mcf per day of associated gas, net to Echo.  liquid blends achieved on average a premium
       onshore Argentina for H1-2022 to June 30, 2022.   The plan to bring existing wells in to pro-  of $21 per bbl over lower-quality blends. The
       In addition, the Company confirms the agree-  duction under the Enhancement Plan is in  operation from installation to commissioning
       ment by the Santa Cruz Sur partners to a plan to  addition to, and will come ahead of, previously  is anticipated to take around four months from
       materially increase Santa Cruz Sur production  announced intentions regarding identified  commencement.
       by circa 40% above average H1-2022 production
       levels.
         H1-2022 Production and  Operational
       Update: Production over the period from Jan-
       uary 1, 2022, to June 30, 2022, has continued
       to remain strong and reached an aggregate
       of 261,290 boe net to Echo during the period,
       including 48,600 barrels of oil and condensate
       and 1,280 mcf of gas.
         Net liquids production in Q2-2022 aver-
       aged 272 bpd of oil, an increase over Q1 levels
       (Q1-2022: 265 bpd of oil) despite, as previously
       announced, a 35-day maintenance and upgrade
       programme on the Oceano field during the
       quarter, when oil and gas production from the
       field was temporarily brought offline.
         Net gas production averaged 6.8 mcf per day
       during Q2-2022 (Q1-2022: 7.4 mcf per day),
       with Q2-2022 production again impacted as
       a result of the Oceano field production being
       brought temporarily offline for maintenance
       and upgrades to the compressor and associated
       infrastructure.



       Week 26   30•June•2022                   www. NEWSBASE .com                                             P15
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