Key points:
- Echo Energy shares surged 12% on an upbeat Q3 operations update.
- The Latin American energy firm recently upgraded its infrastructure.
- In addition, the firm expects to report better production figures in Q4.
The Echo Energy PLC (LON: ECHO) share price surged 12% after its Q3 operations update, which showed that its net liquids production volumes had improved for the eighth consecutive quarter that ended on 30 September 2022.
The energy company noted that it had produced 392,253 net barrels of oil equivalent (boe) from January 2022 to September, which includes 74,127 barrels of oil and condensate and 1,909 MMscf of gas.
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Echo Energy’s oil production in Q3 averaged 276 barrels daily (bopd), increasing to the 272 bopd produced in Q2 2022. The company also produced 6.9 MMscf/d of net gas in Q3 2022, an improvement on the 6.8 MMscf/d of gas produced in Q2 2022.
The Latin-America-focused energy company’s overall production was negatively affected by the additional infrastructure upgrades it was conducting on its Oceano oil field, which meant that it was temporarily taken offline for q while.
Echo Energy wants to increase the amount of gas produced at the field by reconfiguring the compressor to use electric power from a newly-installed generator instead of gas. Production was impacted during the installation of the brand-new generators and their commissioning, which is now completed.
The firm noted that gas production increased substantially after the generators were commissioned, averaging 7.9 MMscf/d, while the net liquids production rose to 320 bopd, which should be reflected in the next quarterly results.
Investors cheered that the company plans to reopen shut-in wells after completing the workover drill rig’s upgrade. As a result, the firm expects production to initially rise to 1,638 boepd from 1,398 boepd for Q2 2022 after the infrastructure upgrades.
*This is not investment advice.
Echo Energy share price.
The Echo Energy share price surged 12% to trade at 0.28p, rising from Monday’s closing price of 0.25p.