Echo in Argentina farm-in

Echo Energy has agreed to farm into four blocks spanning 11,153 square kilometres onshore Argentina, the company announced on Wednesday.

Echo struck a deal with Compañía General de Combustibles for the acquisition of a 50% interest in the Fracción C, Fracción D, Laguna de los Capones and Tapi Aike licences located in the Austral Basin.

“Echo was launched in March this year to secure multi Tcf potential onshore gas assets across South and Central America counter cyclically,” CEO Fiona MacAulay said in a statement. “This transaction is a transformational acquisition in the region and will form the backbone of our gas business, blending exploration, appraisal and production.”

The deal, subject to regulatory approvals, is valued at up to USD 44 million. It is expected to close by December 29, 2017, and to progress in several stages, with the first well drilled in Q1 2018.