Page 15 - LatAmOil Week 08 2021

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UPSTREAM

Echo Energy announces

operational update

Echo Energy, the Latin American focused
upstream oil and gas company, has provided an
update on operations at its Santa Cruz Sur assets,
onshore Argentina.
Investment in facilities to enable increased
liquids production: Following continued
improvements in market conditions the Com-
pany has agreed, together with the Santa Cruz
Sur partners, to capital expenditure to upgrade
and debottleneck the existing liquids pipelines in
the Santa Cruz Sur assets to accelerate the return outlook and, specifically, the increase in oil last 26 years and three months as of the final
to full oil production and to bring the remain- prices from the start of 2021, there has been an acceptance of the unit, scheduled for 2024.
ing volumes previously shut in in Q2-2020 back increased demand for Santa Cruz Sur oil, result- The project foresees the interconnection of
online. The pipeline upgrades will also pro- ing in improved pricing and, as a result, more 15 wells to the FPSO, being six oil producers, six
vide additional capacity for future production frequent oil sales. Oil sales to date in 2021 have water and gas injectors, one gas injector and two
enhancement projects that have been identified totalled 17,600 barrels net to Echo. convertible wells, through a subsea infrastruc-
in the Company’s opportunity portfolio at Santa Martin Hull, Echo’s Chief Executive Officer, ture composed of rigid production and injection
Cruz Sur. commented: “We are very pleased to be making pipelines and flexible service pipelines.
Capital expenditure net to Echo’s 70% work- continued progress across the portfolio as mar- Petrobras, February 24 2021
ing interest of around $275,000 will be injected ket conditions continue to improve. The Com-
by the Company to replace and upgrade parts pany’s investment in improved and renewed
of the infrastructure primarily in the Chorillos, infrastructure at Santa Cruz Sur is both consist- PERFORMANCE
Campo Molino and Cerro Convento fields with ent with Echo’s commitment to HSE in the field
installation expected to take approximately 45 and provides additional capacity for the oppor- GeoPark announces 2020
days from conclusion of successful procure- tunities the portfolio holds to increase produc-
ment. Ten individual upgrade projects will be tion and revenue. certified 2P reserves of
completed to enable the upgrade of around 23 “With stable production and several growth
km of pipeline. opportunities to pursue, we feel positive about 175mn boe
It is anticipated that once the pipelines are the Company’s prospects for 2021, especially
fully operational, gross daily liquids production having announced earlier this week, pending GeoPark, a leading independent Latin Ameri-
will be restored to levels of between 480-600 bpd noteholder approval, progress in the restruc- can oil and gas explorer, operator and consoli-
(336-420 bpd net Echo). The actual level of pro- turing of the Company’s balance sheet. With a dator with operations and growth platforms in
duction resumed will be dependent on reservoir firmer financial footing and material operational Colombia, Ecuador, Chile, Brazil and Argen-
behaviour and pressure build up since this ele- upside which we are actively pursuing, I look tina, has announced its independent oil and gas
ment of production was shut in in April 2020. forward to updating shareholders with further reserves assessment, certified by DeGolyer and
In light of current attractive market condi- good news in due course.” MacNaughton (D&M), under PRMS methodol-
tions, this infrastructure project is considered an Echo Energy, February 24 2021 ogy, as of December 31, 2020.
attractive investment with the ability to result in All reserves included in this release refer to
strong cashflow generation and a short payback GeoPark working interest reserves before roy-
period of months. SERVICES alties paid in kind, except when specified. All
Production Update: Daily operations in the figures are expressed in US Dollars.
field at Santa Cruz Sur continue with the delivery Petrobras on charter of the Building on GeoPark’s core base Llanos 34
of produced gas to customers as expected. Pro- block (GeoPark operated, 45% WI), adding
duction levels remained in line with the Compa- sixth module for Búzios Amerisur’s growing production and reserves,
ny’s expectations with average daily production, and following a limited 2020 work programme
net to Echo’s 70% interest, from Santa Cruz Sur Petrobras informs that today it signed a letter of with a focus on lower risk projects, the Company
throughout 2020 of 1,966 boepd (including 10.2 intent with SBM Offshore for the chartering and reports:
mcf per day of gas). Total cumulative produc- provision of services for the FPSO (floating pro- Colombia Reserves: PD Reserves: Proven
tion from Santa Cruz Sur during 2020 net to duction storage and off-loading unit) Almirante developed (PD) reserves in Colombia increased
Echo was 720,000 boe (including 3,750 mcf of Tamandaré, to be installed in the Búzios field, 13% to 48.0mn boe, with a PD reserve life index
gas) and 2021 production remains strong. Gross located in the Santos Basin pre-salt area. (RLI) of 3.9 years. 1P Reserves: Proven (1P)
cumulative production from Santa Cruz Sur for The FPSO will be the sixth unit of the defini- reserves in Colombia remained steady at 95.2mn
the period 1 January 2021 to 14 February 2021 tive system to be installed in the Búzios field and boe, with a 1P RLI of 7.8 years. Net present value
was 116,040 boe (net 81,230 boe). will be capable of processing 225,000 barrels per after tax discounted at 10% (NPV10 after tax) of
Increased frequency of Oil Sales: Given the day (bpd) of oil and 12mn cubic metres of gas 1P reserves decreased by 6% to $1.5bn due to a
indications of an improving macro-economic per day. The charter and service contracts will lower price deck.

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