Echo Energy announces that the Campo Limite exploration well (CLix-1001) in the Palermo Aike concession of Santa Cruz Sur has been drilled to a total measured depth ("MD") of 2,247 metres and wireline logging has now been completed.

Map source: Echo Energy

On the basis of encouraging initial data from drilling and logging operations, a decision has been made with the Operator, Selva Maria Oil and Gas S.A.*1 to move to the next stage of operations to complete and test the well.

The target Springhill Formation was encountered at 2,124 metres. Initial analyses of the wireline log data have been completed and have highlighted a zone of interest comprised of fine grained sandstones. This unit also coincided with elevated gas shows of 193,000 parts per million ("ppm") against a background of 20,000 ppm.

The presence of elevated gas shows in the target section combined with wireline log data is positive and has resulted in the Company and the Operator taking the decision to move to completion and testing. The Company cautions that completion of the well test and analyses of the results is needed to conclusively establish the presence of producible gas.

The well will be completed by the Petreven H-205 rig followed by conventional inflow testing  with a workover rig. Mobilisation is currently being scheduled and further announcements will be made, as appropriate, in due course.

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