Echo Energy enters Bolivia's gas market with 80% interest in Hauyco block


LONDON -- Further to the Company’s recently announced onshore gas strategy across Latin America, Echo is delighted to announce the signature of its first transaction in Bolivia.

The Company has signed a binding joint evaluation agreement with Pluspetrol Bolivia Corporation SA which positions the Company to secure an 80% operated interest in the Huayco block in southern Bolivia.

The Huayco block lies within the Tarija basin, benefits from full 3D seismic coverage and, critically, the Company internally estimates it has significant multi-Tcf gas potential. The block spans 75 km2 and is close to key export gas pipeline infrastructure which would connect any discovery to high value gas markets in Brazil and Argentina.

The agreement commences with a technical evaluation after which, subject to the usual regulatory approvals, Echo will take an 80% operated position (Pluspetrol currently holds a 100% operated position). Whilst Echo will pay 100% of the first well (and 80% of the wells thereafter), the evaluation agreement only commits Echo to fund the agreed technical studies and as such no back costs or consideration is payable.

Both companies view this as the start of a longer-term partnership in which other potential opportunities may be explored in country.

The Company also confirms it is close to securing other exploration and production assets in the region, which will be subject to separate announcements.

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