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Echo Energy PLC (ECHO)

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Thursday 17 December, 2020

Echo Energy PLC

Argentina Commercial Update

RNS Number : 9282I
Echo Energy PLC
17 December 2020
 

17 December 2020

 

 

 

Echo Energy plc

("Echo" or "the Company") 

 

Argentina Commercial Update

 

New gas contract at premium to prevailing spot pricing

 

Echo Energy, the Latin American focused upstream oil and gas company, is pleased to provide a commercial update regarding the Company's gas sales from the producing Santa Cruz Sur assets, onshore Argentina.

 

The Company is pleased to confirm that it has secured a new contract at a premium to prevailing spot market rates with a key gas customer for four months until end April 2021 pursuant to which the Company will supply the customer with approximately 1.8 MMscf/d gross (1.3 MMscf/d net to Echo) of natural gas. In the absence of the new contract these volumes would have been sold to the spot market. The gas price under the contract is a flat $2.00 per mmbtu representing a significant 26% premium to the prevailing local spot price in November 2020.

The Company continues to sell gas under a combination of secured contracts of up to a year in duration and spot sales and the result of the new contract is that approximately 60% of daily gas production from Santa Cruz Sur, under current market conditions, will be sold under secured contracts at significant premia to the current spot price during Q1 2021.

 

For further information, please contact:

 

Echo Energy

Martin Hull, Chief Executive Officer

 

via Vigo Communications

Vigo Communications (PR Advisor)

Patrick d'Ancona

Chris McMahon

 

+44 (0) 20 7390 0230

Cenkos Securities (Nominated Adviser)

Ben Jeynes

Katy Birkin

 

+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.

 

 

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