Page 15 - LatAmOil Week 27 2022

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.

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