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Santa Cruz Sur: Monte Aymond Gas Project
Santa Cruz Sur: Monte Aymond Gas Project.
About this update from Nativo Resources Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 3630A\n Echo Energy PLC\n 29 September 2020\n \n \n \n 29 September 2020\n \n Echo Energy plc\n (\"Echo\" or \"the Company\")\n \n Santa Cruz Sur : Monte Aymond Gas Project\n \n Echo Energy, the Latin American focused upstream energy company, is pleased to announce the completion of an initial assessment by the Company of the Monte Aymond gas project in Santa Cruz Sur, Argentina.\n \n \n The Monte Aymond project, located 5.2 km to the west of Campo Limite\n on the Company's existing Palermo Aike licence at Santa Cruz Sur, involves working over the Monte Aymond well which was drilled successfully in 1984, targetting a Springhill reservoir structure imaged on 3D seismic. The well successfully discovered and tested gas and condensate at an initial flowrate of 2.4 MMscf/d, and subsequently at an average rate of 5 MMscf/d over a longer 10 month period of production. Whilst this well was previously abandoned, the Company believes that the now improved local infrasucture and prevailing gas prices mean Monte Aymond is now an exciting commercial project. \n \n \n \n \n \n In 2019, a conceptual study was undertaken by the then Santa Cruz Sur Joint Venture partners around the export of Monte Aymond gas with a proposed 2.6 km flow line and associated infrastructure to processing facilities across the border in Chile at a gross cost of US$570,000 and with an economic payback period of 3 months. This assumed a realised sales price of US$42/bbl of oil and a gas price of US$3.5/mmbtu. \n \n \n \n \n \n Building upon this historical work, Echo has also commenced a feasibility study to explore the option for micro-LNG (compression and liquefaction of natural gas) at Monte Aymond which would increase the Company's ability to sell gas directly to clients in remote areas via truck transportation (a virtual pipeline) with the potential to achieve materially higher sales prices. \n \n \n \n \n \n As an alternative to the micro-LNG option, the Company is considering the development of Monte Aymond via both the aggregation of the volumes of Campo Limite, and Monte Aymond via a hub development approach to potentially lower development costs and increase the returns from both projects and also a standalone development. \n \n \n \n \n \n The Company also c...