First Oil Export Cargo and Gas Sales Update

RNS Number : 2418L

Echo Energy PLC

18 April 2018

 

18  April 2018

Echo Energy plc

("Echo" or the "Company")

First Oil Export Cargo and Gas Sales Update

Echo Energy plc, the Latin American focused upstream oil and gas company, is pleased to announce that its first export cargo of oil was loaded from the Punta Loyola terminal, Rio Gallegos, on to the New Conquest tanker over the weekend of 14 April 2018.

Echo's share of the cargo from Q1 oil production from Fracción C and Fracción D was approximately 25,000 barrels and the cargo was sold to Vitol. The final realised sale price is based upon the average Brent price for the 5 days following loading and will be at a discount of approximately US$6 per barrel to the average Brent price during that period which is currently sitting at over US$ 71.5 per barrel.

Additionally, during Q1 all sales gas produced in the period (245.1 million standard cubic feet net to Echo) has been sold into the Argentinian market at an average realised price of US$4.21 per mmbtu (pricing ranging from US$3.04 to US$5.53 per mmbtu during the period). An additional 81.5 million standard cubic feet produced at the wellhead has been utilised in field for fuel and power.

Total sales receipts net to Echo before royalty, tax and operating expenses for Q1 2018 are therefore anticipated to be approximately US$2.7 million.

Fiona MacAulay, Chief Executive Officer of Echo, commented:

'Loading our first cargo was a significant step for Echo, particularly with Brent currently trading at a sustained US$70 / barrel for the first extended period during 2018. We are also delighted that gas sales have remained strong and our realised blended price for those has been in excess of US$4.20 per mmbtu throughout the summer season in Argentina. Receipt of maiden LATAM revenues in Q1  marks an important milestone in the Company's mission to become an exploration-led gas-focused mid-cap E&P, delivering value for shareholders.'

For further information please contact:

Echo Energy plc Fiona MacAulay, CEO Will Holland, CFO	[e-mail] [e-mail]
Smith & Williamson (Nominated Adviser) Azhic Basirov David Jones Ben Jeynes	[phone]
Hannam & Partners (Corporate Broker) Giles Fitzpatrick Andrew Chubb Ernest Bell	[phone]
Vigo Communications (PR Adviser) Patrick d'Ancona Chris McMahon Kate Rogucheva	[phone]

mmbtu means million British thermal units.

Certain of the information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

 

END

 

 

DRLEAPLXFSAPEFF