As a result of the continued improvement of market conditions, the Company continues to successfully bring oil wells back into production that had been shut in earlier this year. Since
In addition, post-shut in production levels at the Palermo Aike field suggests that new opportunities may be available to capture additional production potential. In this field, post-shut in pressure and production data indicate the potential for significantly increased production levels through a combination of production optimisation on the existing field and, later, with new development wells. With just the existing well stock, the data indicates a gross production potential of between 126 bopd and 189 bopd (88 bopd to 132 bopd net to Echo's 70% interest) subject to availability of increased liquid storage and separation facilities at the field. This compares to an estimated restricted gross production rate of 31 bopd pre-shut in earlier this year.
The Palermo Aike field was historically overlooked due to a lack of infrastructure in the area, which restricted production rates. However, the seven-month shut in period and subsequent production start up has provided important subsurface data to assess the field's potential in more detail. The Company now believes that there is also exciting commercial potential with future development wells targeting other parts of the field. These will be assessed and included in the portfolio of production opportunities across the Santa Cruz Sur assets as the 2021 operational plan is progressed.
Across these fields, we are pleased to have seen no evidence of any reservoir deterioration as a result of the shut in periods and in the case of the Palermo Aike field, we have in fact seen a material increase in production levels. We see significant potential for further field reopenings and production optimisation activity across our production assets both this year and throughout 2021 in what is shaping up to be a busy operational period for the Company.'
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