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Echo Energy says production uninterrupted by coronavirus and remains in-line with expectations

The group anticipates average production of around 2,250 barrels oil equivalent per day

Echo Energy PLC - Echo Energy says production unimpacted by coronavirus and remains inline with expectations

Echo Energy PLC (LON:ECHO) has told investors that its production and operations have continued uninterrupted amid the coronavirus (COVID-19) pandemic and remains in-line with expectations.

In a statement on its operations in Argentina, Echo said that net production averaged 2,250 barrels oil equivalent (boe) per day or 310,474 boe in aggregate in 2020 to date.

"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,” Martin Hull, Echo's chief executive added. “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."

READ: Echo could up output after tax change in Argentina

Hull added: “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 Eco Energy TA Op Limited subsidiary and this will positively impact cash flow."

VAT retention on domestic sales revenues has been reduced to 10.5%, from 21%.

Echo noted the recent changes by the Argentinian government for domestic oil price support, and reiterated that it is assessing the extent of the positive impact for the Santa Cruz Sur assets.

Potential benefits could include the prospect of increasing oil production by bringing online previously shut-in wells., it added.

Quick facts: Echo Energy PLC

Price: 0.3635 GBX

AIM:ECHO
Market: AIM
Market Cap: £2.93 m
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