(Alliance News) - Latin-American focused upstream energy company Echo Energy PLC said on Tuesday that it secured two new gas sales contracts at significant premiums to 2021 contracted rates.
The company said the success in obtaining the contracts reflected strong competition amongst customers to secure gas supplies from the company for the coming year.
The contracts have a term of 12 months, with gas sales starting in May. They provide for a 65% increase over average annual contract pricing previously achieved by the company in March 2021 and over double the current summer pricing until end-April under those same March 2021 contracts.
Chief Executive Martin Hull said: "The successful negotiation of the new gas contracts, at large premiums to last year's pricing, represents an important step forward for Echo.
"Increased revenues will provide further funds to drive forward growth whilst also providing additional Argentinian cash flows with which to tackle the ongoing historical Santa Cruz Sur creditor position.
"We continue to identify means to enhance cash generation at these fields both through commercial and operational means, and in combination these are strengthening Echo's financial platform as the commodity tailwinds remain strong."
Echo Energy shares were down 3.5% at 0.52 pence on Tuesday afternoon.
By Xindi Wei; xindiwei@alliancenews.com
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Echo Energy (ECHO)