(Alliance News) - Echo Energy PLC said Tuesday the Argentinian government has signed a decree setting the price of oil at USD45 per barrel.
Shares in Echo were 16% higher in London on Tuesday afternoon at 0.55 pence each.
Echo said the price - which is "significantly above current international prices" - will allow local producers to increase cash flows.
Echo continued: "The legislation is effective immediately and will last until the earliest of either December 31 2020, or until such point ICE Brent exceeds a price of USD45 per barrel for more than 10 consecutive days. This price is subject to periodic review.
"Furthermore, mandatory requirements have been set, subject to demand, for refiners to pay producers on a fixed price basis and refiners are prohibited from importing crude oil from abroad, providing that certain terms and conditions are met which include supporting local demand."
By Paul McGowan; paulmcgowan@alliancenews.com
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Echo Energy (ECHO)