StockMarketWire.com - Oil and gas company Echo Energy confirmed that the pipeline infrastructure work to bring back online the liquids production previously shut in April 2020 was now complete, paving the way of material increase in cash flow.

'Increasing liquids production represents delivery upon the company's strategy to leverage the marked upswing in global commodity prices. It is expected that the additional liquids production will contribute to a material cashflow increase,' the company said.

It is expected that the first tranche of production to be brought back online will be from ten wells in the Campo Molino and Chorillos oils fields its Santa Cruz Sur assets, onshore Argentina.

This work to bring the initial production back online is expected to take around 15 days.

'When these wells were last online, the combined gross production was approximately 138 bopd gross, 96 bopd net to Echo,' the company said.

'This first tranche of restored production will increase the number of active producing oil wells at Santa Cruz Sur to 18. Subsequent tranches of production when brought back online should increase this active oil well stock to around 35,' it added.

The company also confirmed that since 1 May 2021 gas production had been sold under the previously announced new gas sales agreements, with the significantly increased winter pricing. Gas volumes not sold under long term contracts are sold to the spot market.

In May 2021, the company sold a total of 18 MMscf to the spot market at an average price of $US 5 per mmbtu representing a 151% in prices compared to the March 2021 average spot price.

Production over the period from 1 January 2021 to 14 June 2021 reached an aggregate of 278,600 boe net to Echo, which included 33,910 bbls of oil and condensate and 1470 mmscf of gas.






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