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Echo Energy #ECHO – Operational Update – Q2 Update 2021
Echo Energy, the Latin American focused upstream oil and gas company, is pleased to provide an operational update regarding its Santa Cruz Sur assets, onshore Argentina, for Q2 2021 until 14 June 2021.
Operational Update
The Company is pleased to confirm that following fabrication, installation of the pipeline infrastructure required to bring back online the liquids production previously shut in April 2020 is now complete. The schedule has been delivered in line with the timeline anticipated in the Company’s announcement of 24th February 2021.
It is expected that the first tranche of production to be brought back online will be from ten wells in the Campo Molino and Chorillos oils fields. This work to bring the initial production back online is expected to take around 15 days. When these wells were last online, the combined gross production was approximately 138 bopd gross, 96 bopd net to Echo.
This first tranche of restored production will increase the number of active producing oil wells at Santa Cruz Sur to 18. Subsequent tranches of production when brought back online should increase this active oil well stock to around 35. The programme of work to bring online the subsequent tranches of wells will be optimised both to maximise cost efficiencies and accelerate production increases.
Increasing liquids production represents delivery upon the Company’s strategy to leverage the marked upswing in global commodity prices. It is expected that the additional liquids production will contribute to a material cashflow increase.
The Company is additionally pleased to confirm that since 1 May 2021 gas production has been sold under the previously announced new gas sales agreements, with the significantly increased winter pricing. Gas volumes not sold under long term contracts are sold to the spot market.
In May 2021, the company sold a total of 18 MMscf to the spot market at an average price of $US 5 per mmbtu representing a 151% in prices compared to the March 2021 average spot price.
Daily operations in the field at Santa Cruz Sur continue with the delivery of produced gas to customers as expected. Production over the period from 1 January 2021 to 14 June 2021 reached an aggregate of 278,600 boe net to Echo, which included 33,910 bbls of oil and condensate and 1470 mmscf of gas.
Martin Hull, Chief Executive Officer of Echo Energy, commented:
“As we have moved into mid 2021, Echo has continued to deliver on its promises, with the pipeline infrastructure delivered to schedule. We are now moving into a phase of increasing liquids production enabling Echo to benefit from the upswing in global oil prices and the improved macro-outlook as demonstrated by our increased frequency of oil sales. Against this global backdrop, domestic spot market gas prices have also risen markedly, and we have been able to take advantage of this improving domestic situation. With improved economic tailwinds and new infrastructure installed in the field, we will have additional capacity to commission incremental enhancement projects within the portfolio. The increasing cashflows are expected to enable further production investments to be funded from operations. These preparations to take advantage of identified material organic growth options demonstrate Echo’s commitment to and confidence in its growth strategy in the Santa Cruz Sur assets . Our clear focus remains on creating value for our shareholders and we continue to progress opportunities to do that across the portfolio connected by our enhanced infrastructure.”
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. boe means barrels of oil equivalent; bbl/d means barrels of oil per day; boepd means barrels of oil equivalent per day; MMscf mean million standard cubic feet of gas; MMscf/d means million standard cubic feet of gas per day.
Certain of the information contained within this announcement is deemed by the Company to constitute inside information as stipulated under The Market Abuse Regulation (EU 596/2014) pursuant to the Market Abuse (Amendment) (EU Exit) Regulations 2018. Upon the publication of this announcement via a Regulatory Information Service (“RIS”), this inside information is now considered to be in the public domain.
Echo Energy #ECHO – Result of Annual General Meeting
Echo Energy, the Latin American focused full cycle energy company, advises that it held its Annual General Meeting (AGM) earlier.
The resolutions were voted on by way of a poll. Resolutions 1 to 5 were duly passed whilst resolution 6 did not meet the requisite 75% voting threshold for that special resolution to pass.
The proxy votes cast prior to the AGM were as follows:
|
Resolutions |
For |
% |
Against |
% |
Withheld |
|
1 |
140,309,493
|
99.87
|
186,808 |
0.13 |
0 |
|
2 |
137,434,846 |
97.82 |
3,061,455 |
2.18 |
0
|
|
3 |
137,088,704 |
97.60 |
3,368,783 |
2.40 |
38,814 |
|
4 |
80,078,956 |
57.01 |
60,388,574 |
42.99 |
28,771 |
|
5 |
136,502,821 |
97.20 |
3,925,895 |
2.80 |
67,585 |
|
6 |
78,704,196 |
56.05 |
61,724,520 |
43.95 |
67,585 |
A “Vote withheld” is not a vote in law and is not counted in the calculation of the percentage of shares voted “For” or “Against” any resolution
|
Echo Energy PLC (ECHO) – Further re Issue of Warrants
Echo Energy, the Latin American-focused full cycle energy company, announced on 22 December 2020 that, in connection with a subscription and warrant issue then announced, the issue of 83,921,568 warrants to subscribe for new ordinary shares in the Company would be subject to receipt of share issuance authorities.
As a result of the Company having sufficient share issuance authorities to allow the issue of the Warrants ahead of the Company’s 2021 annual general meeting, the Board has now issued the Warrants. The Warrants expire two years after the date of issue, with 50% of the Warrants exerciseable at 0.7 pence per new ordinary share and 50% of the Warrants exerciseable at 0.75 pence per new ordinary share.
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 |
Echo Energy Plc #ECHO – Argentina: VAT Update
Argentina: VAT Update
Echo Energy, the Latin American focussed energy company, is pleased to provide an update on the Argentine value added tax (“VAT) reclaim process, and the successful monetisation of a further proportion of the Argentine VAT owed to the Company.
Disbursements totalling Ars$ 48.4 million (approximately US$ 0.5 million), consisting of Ars$ 33.1 million plus interest of Ars$ 15.3 million of PP&E VAT owed to Eco Energy TA Op Limited (the “Subsidiary”), the Company’s subsidiary which holds a 25% interest in the Santa Cruz Sur assets (of Echo’s total 70% interest), have now been received. This cash payment demonstrates the continuing successful processing of VAT refunds owed to the Company by the Argentine authority, AFIP, as it resumes normal activity following months of COVID – 19 related shut down.
Following these most recent disbursements, historical reclaims regarding VAT owed to the Echo group related to operations at Santa Cruz Sur totalling approximately US$0.7 million remain in progress.
The Company is also pleased to announce that the 2020 PP&E VAT claim of Ars$ 54.8 million (approximately US$ 0.6 million) for Eco Energy TA Op Limited has been accepted by the Argentine VAT office. The Company’s subsidiary, Eco Energy CDL Op Ltd, which holds Echo’s remaining 45% interest in Santa Cruz Sur, has also had its 2020 PP&E VAT claim of Ars$ 8.1 million approved. Further processing of these claims will now take place ahead of future expected reimbursement.
The Argentine VAT office has also separately now approved the Free VAT application Eco Energy CDL Op Ltd of Ars$ 9.5 million and Echo have completed a sale of this VAT credit in exchange for cash.
The unlocking of the Argentine VAT refund process is, and is expected to continue, to provide material cash funds in the coming months and provides further evidence of the normalisation of in country activities following delays in 2020 caused by COVID 19 restrictions.
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 |
Echo Energy #ECHO – Director/PDMR Shareholding
Echo Energy, the Latin American-focused full cycle energy company, announces that on 18 May 2021 it was notified that Nusakan plc (“Nusakan”) had on that same day, as part of a broader realisation of that investment vehicle, distributed the entirety of its 3.1% shareholding in Echo, being 40,118,865 ordinary shares in the Company (“Ordinary Shares”), directly to Nusakan’s own shareholders for no consideration (the “Nusakan Distribution”). Marco Fumagalli, a Non-Executive Director of the Company, is a 25% shareholder of Nusakan.
Marco Fumagalli’s beneficial interest in the Company is unchanged as a result of the Nusakan Distribution, with Mr. Fumagalli now holding a direct interest in 10,029,716 Ordinary Shares, representing approximately 0.77% of the Company’s issued ordinary share capital, in his own name.
The notification below, made in accordance with the requirements of the UK Market Abuse Regulation, provides further details.
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 |
Link here to view the TR1
Echo Energy #ECHO – Publication of Annual Report and Notice of Annual General Meeting
Echo Energy plc, the Latin American focused upstream oil and gas company, announces that its Annual Report and Accounts for the year ended 31 December 2020 together with a notice convening the Company’s Annual General Meeting (“AGM”) has today been published.
The AGM is to be held on Wednesday 16 June 2021 at 12 noon at the offices of Fieldfisher LLP, Riverbank House, 2 Swan Lane, London EC4R 3TT.
As a result of current UK Government COVID-19 restrictions, which includes banning gatherings of more than six people, the Company’s AGM will not be held in its usual format. The Company has arranged, in line with current COVID-19 restrictions, for the AGM to be held with only directors and such number of shareholders in attendance as is required to ensure that the AGM is quorate. As a result shareholders are advised not to attend, and should shareholders do so it is likely that they will be not be permitted entry.
The Company plans to hold an online investor event ahead of the AGM to enable shareholders to ask any questions they may have. Details of the event will be provided nearer the time.
Copies of the Annual Report and Accounts and notice of AGM are available on the Company’s website at www.echoenergyplc.com .
For further information please contact:
|
Echo Energy plc Martin Hull, Chief Executive Officer
|
Via Vigo Communications Ltd
|
|
Cenkos Securities plc (Nominated Adviser) Ben Jeynes Katy Birkin
|
Tel: 44 (0)20 7397 8900 |
|
Vigo Communications Ltd (PR Advisor) Patrick d’Ancona Chris McMahon
|
Tel: 44 (0)20 7390 0230 |
|
Shore Capital ( Corporate Broker) Jerry Keen
|
Tel: 44 (0)20 7408 4090 |
Alan Green discusses Echo Energy #ECHO in Part 1 of his weekly Stockbox Media Research talk
Alan Green discusses Echo Energy #ECHO in Part 1 of his weekly Stockbox Media Research talk
Echo Energy plc (ECHO) – Final results
Final Results
Echo Energy plc, the Latin American focused full cycle energy Company, is pleased to announce its audited results for the financial year ended 31 December 2020.
2020 Highlights:
- Fourfold increase in revenue to US $11.1 million (2019: US $2.6 million)
- Favourable fiscal environment have led to the receipt of certain VAT payments, improving business cashflow.
- Santa Cruz Sur net daily production in 2020 totalled 1,966 boepd:
- 10.2 mmscf/d of natural gas
- 259 bbls/d of oil and condensate
- In 2020, Echo’s net cumulative production was 0.72 MMboe:
- 3,750 mmscf of natural gas
- 94,693 bbls oil and condensate
- Company estimated reserves and resources as at 31 December 2020 net to Echo’s 70% interest:
- 1P (Proved): 3.13 MMBoe
- 2P (Proved & Probable): 4.06 MMboe
- Contingent Resources (High estimate): 7.20 MMboe (Best estimate 6.51 MMboe)
- Adapted swiftly during the period to challenges presented by COVID-19, reorganisation along value chains enabled Echo to lower operating costs and improve efficiencies
Post period end
- Company successfully completed the restructuring of both the Company’s EUR 20.0m 8.0% secured notes and the Company’s EUR 5.0m 8.0% secured convertible debt facility loan. This represented a landmark step for the business by materially improving the financial outlook through the deferral of maturity until Q2 2025 and no cash interest payments prior to the maturity date. The agreement, with the support of the debt holders not only substantially strengthens the balance sheet it enables for the reinvestment of cashflow into the business to drive further growth.
- Secured new gas sales contracts at premium rates to the prevailing spot markets in early Q1 2021.
- Echo entered into a cooperation agreementwith GTL International S.A. (“GTLI”) to seek future opportunities in Bolivia.
Martin Hull, Echo’s Chief Executive, commented:
“Echo’s resilience during a very challenging year has ensured that we have been able to continue our operations efficiently and build firm foundations commercially and operationally despite the difficult external conditions. Not only have we made significant cost-saving efforts across the Company and rebalanced our financial position to provide increased flexibility, but we have also achieved tremendous operational progress across our SCS assets where we currently benefit from a favourable fiscal environment and attractive gas sales agreements with key customers. Moving forward, we are excited by the continuing expansion opportunities at our SCS assets, where we aim to maximise production potential, and we are also encouraged by the potential for new hydrocarbon and/or renewable energy prospects in neighbouring Bolivia and elsewhere in the Region. The framework for 2021 and beyond has now been set in place, and we look forward to capitalising on our various growth catalysts.”
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 |
Link to the full announcement and statements here.
Alan Green talks Echo Energy #ECHO, Emmerson #EML & Ananda Developments #ANA on the Vox Markets podcast
Alan Green discusses Echo Energy #ECHO, Emmerson #EML & Ananda Developments #ANA with Justin Waite on the Vox Markets podcast. Interview is 9 minutes in.
Echo Energy #ECHO – Operational and Commercial Update Q1 2021
Echo Energy, the Latin American focused upstream oil and gas company, is pleased to provide an operational and commercial update regarding its Santa Cruz Sur assets, onshore Argentina, for the quarterly period ended 31 March 2021.
Operational Update
Daily operations in the field at Santa Cruz Sur continue with the delivery of produced gas to customers as expected and without interruption. Production over the period from 1 January 2021 to 31 March 2021 reached an aggregate of 152,673 boe net to Echo, which included 17,814 bbls of oil and condensate and 809 mmscf of gas.
As a result of a series of optimisation activities being implemented in the field around the current production, average net daily liquids production in March 2021 increased to 230 bbls/d, a 24% increase over production in February 2021.
The Company is pleased to confirm that the materials required for the infrastructure upgrades of 23 km of pipeline, announced on 24 February 2021, are now being fabricated by the supplier in Buenos Aires following contract execution and the installation schedule remains in line with that announcement.
Commercial Update
Domestic energy demand in Argentina has continued to improve through 2021 to date and the Company has recently sold a significant domestic cargo of 8,812 bbls of oil net to Echo, at the Punta Loyola terminal, with a price linked to the Brent benchmark subject to typical local discount. Following this sale, net oil stock at the Punta Loyola terminal (excluding inventory in field tanks) is currently 4,237 bbls.
Following the Company’s announcement of 24 March 2021, relating to new gas sales contracts for 2021-2022, the Company has now agreed summer and winter pricing for its annual industrial clients, with the contracted winter premium providing substantially increased cashflow in the near term for future operations and production enhancement work programmes. For the committed production over the key southern winter period (May to September), the Company will sell natural gas at an average price of $3.52 per mmbtu, which compares to $1.35 per mmbtu for industrial clients the previous year.
Martin Hull, Chief Executive Officer of Echo Energy, commented:
“Advancing into 2021, Echo has been set on optimising its existing production portfolio and low-risk development upside across the Santa Cruz Sur asset base. The benefits of these earlier efforts are now being seen. Additionally, I am pleased to report that Echo continues to benefit from increasingly strong local energy demand and pricing, which has led us to obtaining premium seasonal pricing to current prevailing spot market prices, and more than double the price of the previous winter period. Against this improving domestic energy price backdrop, we have also executed a significant domestic oil cargo sale which marks an important milestone linked to the improved economic outlook.
Furthermore, we are pleased with the progress we are making on our production optimisation activities across Santa Cruz Sur. Liquids production has recently increased in advance of the upgrades to the 23 km pipeline infrastructure which are progressing at pace. These upgrades will not only unlock previously shut-in liquids production but will also provide additional capacity with which to open up future incremental enhancement projects that have already been identified.”
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. boe means barrels of oil equivalent; bbl/d means barrels of oil per day; boepd means barrels of oil equivalent per day; MMscf mean million standard cubic feet of gas; MMscf/d means million standard cubic feet of gas per day.
Certain of the information contained within this announcement is deemed by the Company to constitute inside information as stipulated under The Market Abuse Regulation (EU 596/2014) pursuant to the Market Abuse (Amendment) (EU Exit) Regulations 2018. Upon the publication of this announcement via a Regulatory Information Service (“RIS”), this inside information is now considered to be in the public domain.