Upstream gas company Echo Energy has reached an agreement for work in connection with its Rio Salado Block, onshore Bolivia.
The company signed the technical evaluation agreement (TEA) with Pluspetrol and state oil company Yacimientos PetrolíferosFiscales Bolivianos (YPFB) at the YPFB 2017 Gas & Oil Congress in Santa Cruz, Bolivia.
Surrounding the Huyaco Block, the Rio Salado Block contains an extension of the structure previously identified by Echo Energy.
Under the agreement, the companies will undertake a technical evaluation of the block over the next 12 months.
Once the technical evaluation is completed, the companies will initiate a negotiation process regarding a commercial agreement with YPFB, leading to the framing of a work programme comprising the drilling of an exploration well.
Echo Energy CEO Fiona MacAulay said: "This agreement enables the company to evaluate the highly prospective and potentially multi tcf exploration area, which extends around the Huayco block.
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By GlobalData“This is the second of many pre-identified strategic transactions in Bolivia demonstrating Echo's ability to move quickly and deliver on its stated strategy.”
The company is planning to extend its seismic reprocessing programme for the Huayco Block to incorporate additional data over the Rio Salado acreage over the greater Huayco area.
Additionally, the company indicated that its acquisition of an interest in Rio Salado is dependent on final commercial terms being agreed.
It also holds interests in non-core assets across Egypt, Tunisia and Italy.
The assets in these countries are expected to be sold, with Echo Energy conducting a strategic review of the assets in Tunisia.