Echo Energy signs technical evaluation agreement for Rio Salado block

Echo Energy has signed a technical evaluation agreement (TEA) with Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) for the Rio Salado block in Bolivia.

Under the agreement, Echo Energy will perform works at the block, including the interpretation and integration of three 2D seismic lines.

First acquired in 2015 and only made available recently, the seismic lines transect part of the block.

Interpretation and integration are intended to further refine the definition of a deep structure mapped across the Rio Salado and Huayco blocks.

Based on management estimates, the whole structure contains 1.75 trillion cubic feet of original gas in place.

Once the TEA period is complete, Echo Energy will have the right to negotiate contract terms with YPFB for the Rio Salado licence.

The acquisition of stake in Rio Salado by Echo is subject to final commercial terms being agreed.

In addition, Echo stated that it is continuing the joint evaluation agreement with Pluspetrol over the Huayco block.

Over the past year, the company completed a full reprocessing of a 250km² cube of 3D data across Huayco and part of Rio Salado.

Echo Energy chief executive Fiona MacAulay said: “We are delighted to have signed the TEA with YPFB for the Rio Salado block, as well as extended our agreement with Pluspetrol regarding Huayco, given the potential we see running across both blocks.

“Much technical work has been done and we are pleased that by extending our agreement with Pluspetrol, we have given ourselves time to further analyse what we still believe to be exciting potential as we evaluate newly available industry data across the licence areas.”