LONDON (Alliance News) - Echo Energy PLC said on Friday it intends to raise GBP8.5 million through a placing and subscription of 71.2 million shares at a price of 12.0 pence per share.
The placing price reflects a discount of 17% to its closing price on Thursday of 14.5 pence. Shares in the South America-focused upstream gas company were down 14% at 12.52 pence on Friday.
Proceeds from the issue will go towards increased short-term commitments relating to the Tapi Aike seismic programme as well as working capital requirements.
This follows the completion of the workover of three wells at Fraccion D in Argentina, and a back-to-back four exploration well drilling campaign at Fraccion C and Laguna Los Capones.
With the drilling of the first well, ELM-1004 at Fraccion C, Echo Energy and asset operator Compania General de Combustibles SA will accelerate their commitment to the 2,000 square kilometre seismic acquisition campaign over the Tapi Aike asset to secure favourable current pricing terms.
Should the share issue go through, Echo Energy will have 474.9 million shares issued overall.
Echo Energy (ECHO)