Echo Energy signs technical evaluation agreement for the Rio Salado Block in Bolivia

LONDON -- Echo Energy, the South and Central America focused upstream gas company, has announced the signature of a technical evaluation agreement (TEA) for the Rio Salado Block, onshore Bolivia.

The TEA between the Company, Pluspetrol and YPFB (Yacimientos Petrolíferos Fiscales Bolivianos) was signed on July 25, 2017 at the YPFB 2017 Gas & Oil Congress in Santa Cruz, Bolivia. This agreement will enable the companies to progress a technical evaluation of the block over the next 12 months. On completion of the technical evaluation, the companies will have the opportunity to negotiate a commercial agreement with YPFB, which would define a work program and is likely to include the drilling of an exploration well.

The Rio Salado Block, which surrounds the Huyaco Block, contains an extension of the structure previously identified by the Company. As a result, the Company's seismic reprocessing program for the Huayco Block will now be extended to incorporate additional data over the Rio Salado acreage for a minimal incremental cost over the greater Huayco area.

The acquisition of an interest by Echo Energy in Rio Salado remains contingent on final commercial terms being agreed and accordingly the Company does not have an interest or the right to acquire any interest at this stage during the non-exclusive evaluation period.