Egypt Divestment

RNS Number : 1242I

Echo Energy PLC

15 June 2017

 

15 June 2017

Echo Energy plc

("Echo" or the "Company")

Egypt Divestment

Further to the announcement on 18 April 2017 and consistent with the Company's strategy to build a LATAM exploration business, the Company is pleased to confirm it has now sold its legacy Egyptian business.

The Company has entered into an agreement to sell its 25% effective working interest in its Egyptian East Ghazalat licence to its Joint Venture partner, Nostra Terra plc.  The sale is for a total consideration of USD $500,000, split into three tranches.  An immediate payment of USD $100,000 is payable when the Egyptian General Petroleum Corporation approve the registration of any member of the buyer's Group as a party to the concession.  The balance of the consideration is payable in two tranches triggered upon achievement of two performance milestones, namely production of 800 bopd from the area for 30 consecutive days and production of 1,000 bopd from the area for 30 consecutive days.

The consideration is payable in either cash or shares.  Where the consideration is shares, the quantity of shares issued shall be determined by dividing the relevant consideration by the lower of: (i) the mid-market closing price of the buyer shares as traded on AIM on the dealing day prior to the date of this Agreement; and (ii) the mid-market closing price of the buyer shares as traded on AIM on the dealing day prior to the date upon which the relevant Consideration is payable. 

James Parsons		Echo Energy plc	[e-mail]
Fiona MacAulay		Echo Energy plc	[e-mail]
John Treacy		ZAI Corporate Finance Ltd. (Nominated Adviser)	020 7060 2220
Oliver Stansfield Jonathan Evans		Brandon Hill Capital (Broker)	020 3463 5000
Patrick d'Ancona Chris McMahon Ali Roper		Vigo Communications (PR Adviser)	020 7830 9700

 

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