29 June 2020
Echo Energy plc
("Echo" or "the Company")
Argentina Commercial Update
Echo Energy, the Latin American focused upstream oil and gas company, is pleased to provide an commercial update regarding the Company's gas sales from the producing assets at Santa Cruz Sur.
Further to the announcement made on 20 May 2020, the Company is pleased to confirm that it has secured further extensions to existing contracts with two key gas customers for a further six months until 17 December 2020. These two extensions provide a weighted average contracted gas sales price of US$4.37 per mmbtu (where applicable, converted using the official exchange rate of the Government of Argentina) for combined net sales volume of 5.6 MMscf/d. The successful contract extensions pricing represents a significant premium to the current spot market of approximately US$1.95 per mmbtu which has increased by 45% per cent since 20 May 2020.
For further information, please contact:
Echo Energy Martin Hull, Chief Executive Officer
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via Vigo Communications |
Vigo Communications (PR Advisor) Patrick d'Ancona Chris McMahon
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+44 (0) 20 7390 0230 |
Cenkos Securities (Nominated Adviser) Ben Jeynes Katy Birkin
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+44 (0) 20 7397 8900 |
Shore Capital (Corporate Broker) Jerry Keen |
+44 (0) 20 7408 4090 |
Note
The assignment of Echo's 70% non-operated participation in the Santa Cruz Sur licences is subject to the authorisation of the Executive Branch of Santa Cruz's Province, which is part of the overall process of title transfer that is proceeding as anticipated. Mmbtu means million British thermal units.
The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.