Echo Energy PLC - Argentina Operational Update
("Echo" or "the Company")
Argentina Operational Update
Daily production and operations in the field have continued uninterrupted, delivering produced gas to customers. Production levels remain, and are expected to remain, in line with the Company's expectations with net production 2020 year to date, over the period from 1 January to 17 May 2020, of an aggregate of 310,474 barrels of oil equivalent (including 59,779 barrels of oil and condensate and 1,504 million standard cubic feet of gas), an average production rate of 2,250 barrels of oil equivalent per day.
Following the recently announced Argentinian Government's domestic oil price support measures, the Company is currently assessing the positive implications for its
The Company is also pleased to confirm that it has secured extensions or volume increases to existing contracts with two key gas customers for May and June. As a result the weighted average contracted gas sales price for these months, of
The Company also confirms a change in VAT status to its subsidiary,
"Having moved quickly to implement measures to protect our staff, contractors and operations from the impact of COVID-19, I am pleased to report that production at Santa Cruz Sur has continued without interruption and is in-line with Company expectations.
The extension of contracts with two key customers, at a premium to the April price, highlights the demand for our produced gas and provides a considerable boost to near term revenues.
We have been working closely with the local tax authorities for a number of months to secure the change to the VAT status for our
For further information, please contact:
+44 (0) 20 7390 0230
Cenkos Securities (Nominated Adviser)
+44 (0) 20 7397 8900
Shore Capital (Corporate Broker)
+44 (0) 20 7408 4090
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
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.
This information is provided by RNS, the news service of the
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