Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.
Echo Energy (LON: ECHO) investors will be feeling optimistic this morning after its share price rallied on the news it has completed the first of 16 well interventions and workovers.
The program aims to bring non-producing reserves back into production at Santa Cruz Sur in Argentina.
The first intervention was completed on a well in the Chorillos block. A surface hydraulic pumping unit was used to induce flow, and over 100 hours, the well delivered a cumulative 305 barrels of ‘high-quality' oil, a rate equivalent to around 76 barrels of oil per day (bopd).
Before the intervention, the field was producing 17 bopd from a small number of active wells.
Echo said it intends to plan when the well is brought into full production to maximise cost and operational efficiencies within the more extensive Santa Cruz Sur assets program.
The intervention and workover program is in addition to Echo's previously announced plan of reactivating previously shut-in wells at the Campo Molino oilfield.
“This well delivered high-quality production capacity and demonstrates the quality and production potential of opportunities available from our assets at Santa Cruz Sur,' said Martin Hull, CEO of Echo Energy.
The company's shares are currently priced at 0.66p, up 6.45% after initially climbing to 0.70p shortly after the open.
Echo Energy shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are ECHO shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
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