Page 13 - LatAmOil Week 40 2021

LatAmOil NEWS IN BRIEF LatAmOil

UPSTREAM
Echo Energy provides update

on Santa Cruz Sur assets

onshore Argentina

Echo Energy, the Latin American focused
upstream oil and gas company, has provided an
operational update regarding its Santa Cruz Sur
assets, onshore Argentina for Q3-2021.
Operational Update: The Company has
announced that further to the announcement
dated August 26, 2021, a further three wells from
the Campo Molino oilfield have been brought
online. All the recently reactivated wells are
producing in-line with expectations. Maximum
daily reported production achieved after these
wells have been online has been around 350
bpd (net to Echo) This represents a further 20%
increase from production levels announced on cashflows as we head towards the end of the to execute on those local projects.
August 26. year.” Manuel Pablo Zuniga-Pflucker, President
In the month of September, liquids produc- Echo Energy, October 5 2021 and CEO, commented: “Well 8H is an example
tion net to Echo averaged approximately 290 of a fantastic well performing at the most oppor-
bpd. This continues to represent an almost 50% PetroTal reports initial tune time of the year, and it has also provided
increase in the total daily liquid production rate a wealth of reservoir data. We aim to continue
at Santa Cruz Sur when compared to the period production rate for BN-8H delivering this type of operational quality in the
immediately prior to the restoration of produc- future. PetroTal is also pleased to represent an
tion from the Campo Molino field just over a development well at important liaison in ongoing community and
month ago. Production levels from the seven government social agenda matters, promoting
reactivated wells continue to indicate that the more than 7,700 bpd some of their key initiatives such as Social Prof-
shut-in period has not had a detrimental impact itability under a fair and just distribution of the
on reservoir behaviour in the Campo Molino PetroTal has announced the 30-day initial pro- central and regional government’s fiscal share.”
oil field, with those wells now being managed duction rate of over 7,700 bpd for Bretaña field PetroTal, October 5 2021
to deliver the same average monthly rate as had development well BN-8H. Well 8H delivered
been achieved prior to shut in in April 2020. over 7,700 bpd average production during its
Liquids produced at Santa Cruz Sur can first 30 days of operation, with the most recent DOWNSTREAM
cater for a variety of blend types, as and when rate at 7,575 bpd.
required from customers. Given the opportunity As of October 3, 2021, during its first 30 days Petrobras comments on
presented by improving markets, and increases of operation, the well has produced 231,000
in realisable prices for higher quality products, barrels. Well 8H is outperforming management failed sale of REFAP refinery
the Company has optimised its commercial expectations. Based on the 8H well’s ongoing
position by focussing production and sales on performance and an expected $45 per barrel oil Petrobras, following up on the release disclosed
the highest quality blends, the prices of which netback, the 8H well should pay out in approxi- on January 19, 2021, informs that it has finalised
have increased more quickly than other blends. mately 45 days, overall. without success the negotiations with Ultrapar
As a result of the demand and increased real- Backstopping 2022 cash flow with additional Participações for the sale of Alberto Pasqualini
ised prices of higher quality blends, production hedging: PetroTal is also pleased to announce Refinery (REFAP) in Rio Grande do Sul.
from Santa Cruz Sur will, in the short term, be it has entered into additional put options with Despite the efforts made by both companies
managed to focus upon production to deliver the strike prices of $70 per barrel Brent oil for in this process, certain critical conditions were
highest quality and highest-priced blend which approximately 25% of the H1-2022 management not met for an agreement and the decision was
can be delivered from existing producing wells. production profile. made to close the negotiations in progress, with
Martin Hull, CEO of Echo Energy, com- Government and local community align- no penalties for either party.As a result, Petro-
mented: “Our pursuit of value for shareholders ment update: PetroTal continues to play a key bras will timely start a new competitive process
continues as we look at ways of maximising the role in bridging communication efforts between for this refinery.
price of our sales. The work we have done in the government and local residents by promot- The competitive processes for the sale of the
recent months has borne fruit and we are now ing some of their key initiatives directly into the Gabriel Passos Refinery (REGAP), in Minas
seeing materially higher prices for our high- community. In order to create alignment with Gerais, Lubrificantes e Derivados de Petróleo do
er-quality blend. This, coupled with increased all stakeholders, PetroTal’s efforts include local Nordeste (LUBNOR), in Ceará, and the Unidade
production levels from the reactivated wells at labor allocation, financial support to develop de Industrialização do Xisto (SIX), in Paraná,
Campo Molino, means we are seeing stronger sustainable projects, and intellectual resources are still underway, aiming for the signing of the

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