Echo Energy PLC‘s (LON:ECHO) disappointing CLM x-1 well may still have a chance to be commercial, according to Shore Capital analyst Craig Howie.

In Wednesday’s early deals Echo shares fell 29% to trade at 1.46p.

The ‘house’ broker, in a note, highlighted that Echo is considering a test of additional targets in the CLM x-1 well.

“This work would have the objective of achieving aggregate flow rates which exceed the commercial threshold, with further technical work now to be undertaken to help consider whether testing of these additional intervals should be undertaken,” Howie said in a note.

“In the meantime, we highlight the fact that the presence of a (so far non-commercial) gas discovery at CLM x-1 should mean that the partners will now qualify for an extra year on the first Tapi Aike exploration period, enabling additional technical work to identify viable drilling locations.”

READ: Echo Energy’s CLMx-1 well disappoints

The analyst added: “In the shorter term, the partners currently anticipate drilling of a well in the western Travesia de Arriba area later this year, with Echo also confirming today that testing operations at its recently drilled Campo Limite well at Santa Cruz Sur are on track to commence later this month.”

Shore Capital currently has a ‘risked NAV’ valuation of 5p per share for Echo.

Echo this morning told investors that the Campo La Mata Exploration well (CLM x-1) in the Tapi Aike licence, in Argentina, made a non-commercial gas discovery.

The well’s primary target (Lobe C) and secondary target (Anita) both contained gas but did not flow at sufficient rates in testing to be considered commercially viable.

Lobe C flowed 0.28mln cubic feet per day, with the average estimated at 0.25mln and there was no condensate. Anita was stimulated and tested at a peak estimated rate of 0.57mln cubic feet per day, with the average estimated at 0.35mln. It also yielded condensates between 7.5 to 18 barrels per day.

The minimum threshold for the well’s commerciality was estimated at 1mln cubic feet per day.

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