The South and Central American-focused upstream gas company Echo Energy signed a Technical Evaluation Agreement (TEA) for the Rio Salado Block, onshore Bolivia, the company announced on Wednesday.
The agreement between the London-listed Echo Energy, Pluspetrol and YPFB (Yacimientos Petrolíferos Fiscales Bolivianos) signed on July 25, 2017 in Bolivia will enable the companies to undertake a technical evaluation of the block over the next 12 months, the company said.
Pluspetrol is a privately held independent oil and gas company while YPFB is a Bolivian state-owned oil company.
The Rio Salado block, which surrounds Echo's Huyaco block, contains an extension of Echo Energy's structure. As a result, the company's seismic reprocessing program for Huayco will now be extended to include additional data covering the Rio Salado acreage for a minimal incremental cost over the Huayco area.
"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 company noted.
The acquisition of Echo Energy's interest in Rio Salado is contingent on the agreement of final commercial terms, the company added.
By Ebru Sengul