With the wonders of modern science I am writing this whilst returning from Egypt, more about that later. In the meantime I’m aware of a couple of important Stories in the sector.
Echo has updated on its recently acquired 70% non-operated working interest in the Santa Cruz Sur assets onshore Argentina. Average daily production in the period 1/11/10 – 31/1/20 was 2,481 boepd ( 560 barrels of oil and condensate per day and 11.5mmscf/d of gas, net to Echo.
This means that in the period, Echo received a net of 27,082 barrels of liquids getting a price of $52.1 boe for the four liftings with a fifth cargo being loaded at the moment. It is worth noting that deliveries of gas to clients continue even at the summer season discounted rates which is very respectable. News from Echo with the drill bit seems imminent.
News whilst on the move in Egypt yesterday that RRE has acquired 100% of Speedwell Energy who are the holder of a 100% interest in the Cotton gas field in the Southern North Sea.
Price is for ‘ a limited initial consideration ‘ with a larger part of consideration becoming due at FID. This is a 2009 discovery which encountered a gas column of up to 1,260 feet over six gas bearing sandstone units. Speedwell estimates that Cotton contains recoverable gas resources of 97Bcf and has the potential to produce at a peak rate of up to 70mmscf/d from two horizontal development wells.
Whilst it is clearly early days for this deal one should consider it a potentially very useful add-on of what looks like not only a significant amount of production in the SNS where RRE is already represented in its portfolio. Expect some hard horse trading given the usual demands for ‘robust’ project economics and what are described as ‘current challenging gas price’.