Echo Energy PLC - Latin American-focused upstream oil and gas firm - Secures new gas contract with a "key gas customer" for a period of four months, ending in April 2021. Says it will supply the customer with approximately 1.8 million standard cubic feet per day gross, or 1.3 million standard cubic feet per day net to Echo Energy, of natural gas. Notes the gas price under the contract is a flat USD2.00 per million British Thermal Unit, which represents "a significant 26% premium to the prevailing local spot price in November," it says.
Says the result of the new contract is that approximately 60% of daily gas production from Argentinian Santa Cruz Sur assets will be sold under secured contracts at "significant premia to the current spot price during the first quarter of 2021."
Notes Hadron Capital LLP takes its stake in Echo Energy to zero from 9.6%.
Current stock price: 0.60 pence
Year-to-date change: down 74%
By Zoe Wickens; zoewickens@alliancenews.com
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Echo Energy (ECHO)