Echo Energy PLC Argentina Commercial Update (6855K)
January 06 2021 - 1:00AM
UK Regulatory
TIDMECHO
RNS Number : 6855K
Echo Energy PLC
06 January 2021
6 January 2021
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 further
gas sales contract at a premium to prevailing spot market rates.
This new contract, for volumes which had previously been supplied
to another party under a gas sales contract expiring in early
January 2021, is with a key gas customer for four months until end
April 2021 pursuant to which the Company will supply the customer
with approximately 1.4 MMscf/d gross (1.0 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 28% premium to
the prevailing local spot price in the fourth quarter of 2020.
The Company continues to sell gas under a combination for
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, continues be sold under secured contracts at
significant premia to the current spot price during Q1 2021.
The execution of this new contract is in line with the Company's
strategy to secure market leading pricing for its products in
anticipation of increasing production pursuant to its future work
programmes.
For further information, please contact:
Echo Energy via Vigo Communications
Martin Hull, Chief Executive Officer
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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END
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