(Alliance News) - Oil & gas company Echo Energy PLC on Friday said production in Argentina has been in line with expectations since the acquisition of a 70% stake in the Santa Cruz Sur assets.
The company also said it has extended its GBP1.0 million loan with Spartan Fund Ltd - due to be repaid on March 9 - by two years. In connection with the extension, Spartan Class O, a sub-fund of Spartan Fund, has been issued 3.6 million warrants at 1.4 pence each, with an expiry date of March 9, 2022.
The stock was trading 15% lower at 0.85p each on Friday morning in London.
Echo Energy said that production at Santa Cruz Sur from November 1, 2019, to February 29 reached 298,140 barrels of oil equivalent including 67,823 barrels of oil & condensate and 1,382 million standard cubic feet of gas. During the period, an aggregate net 215 million standard cubic feet of gas was utilised in the field for fuel and power.
In February, two cargoes of oil and condensate were sold, with cumulative sales of 33,424 barrels at an average sales price of USD47.90 per barrel of oil.
The company said it delivered produced gas to customers at an average price of USD2.72 per million british thermal units.
Separately, Echo said that due to recent movements in oil prices and the potential for volatility in the short term, it intends to secure an additional unsecured standby credit facility, initially of GBP400,000 and up to GBP1 million.
As at the end of February, the company had cash balances of around USD1.4 million. It said it expects to receive additional revenues before the end of March.
By Ife Taiwo; ifetaiwo@alliancenews.com
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Echo Energy (ECHO)