Echo Energy PLC (LON:ECHO) today extended an existing £1mln loan and, amid weak crude prices triggered by coronavirus impacts, has also decided to seek an additional standby credit facility for up to a further £1mln.
In a statement, the company noted that production in Argentina remains in line with the board's expectations.
Production from the acquired Santa Cruz Sur assets averaged 2,410 barrels oil equivalent (boe) per day in the month of February. For the period from 1 November to 29 February Echo had net production totalling 298,140 boe.
Last month, two oil cargoes were sold for a total of 33,424 barrels net to Echo with an average sale price of US$47.90 per barrel – which was a premium to prevailing local market prices.
Echo noted that it had some US$1.4mln of cash at the end of February. It is expecting to receive payments from the two February deliveries this month, and, another crude lifting is slated to take place this month.
Commenting on the decision to seek additional borrowing, Echo said: “The implementation of this facility is a proactive step intended to provide the company with access to additional working capital in the short term, if required, including in the event of a continued decline in oil demand driven by recent global events and any, as of yet unforeseen, local impacts.”