UK-listed South American gas explorer Echo Energy said July 26 it had signed a technical evaluation Agreement for Rio Salado Block, onshore Bolivia.
The agreement is a long way short of a full exploration agreement. However, on completion of the 12-month evaluation, the companies involved will have a chance to negotiate a commercial agreement with state-owned Ypfb to define a work programme that could include drilling an exploration well.
Echo said its agreement was signed with YPFB and Argentinian producer Pluspetrol at Santa Cruz, Bolivia on July 25.
The Rio Salado block surrounds the Huyaco Block where Echo previously identified potential resources. "This agreement enables the Company to evaluate the highly prospective and potentially multi TCF exploration area which extends around the Huayco block," said Echo CEO Fiona MacAulay.
Leading foreign gas producers in Bolivia include Repsol, Total and Petrobras; Repsol's partners are BP-run Pan American Energy and Shell.
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