(Alliance News) - Phoenix Global Resources PLC said Monday it agreed to extend the deadline for Echo Energy PLC to satisfy all conditions for its up to USD8.5 million acquisition of some of its Argentina production blocks.
In late October, Phoenix and Echo agreed a deal which would see Echo pay up to USD8.5 million in cash and shares for the 70% stake owned by Phoenix in the Santa Cruz Sur production blocks in Argentina.
Echo now has until Wednesday to secure the waiver from the minority stakeholder in the Santa Cruz Sur assets.
"Substantial progress in obtaining the waiver has been achieved and the extension is intended to provide sufficient time for the waiver to be delivered," Echo said in a statement. "The company expects to receive the waiver shortly."
Despite this, Echo warned that if the waiver was not received by Wednesday - and no further extensions granted - the acquisition would terminate.
Shares in Phoenix were untraded at 17.00 pence in London on Monday, shares in Echo were unchanged at 3.00p.
By Ahren Lester; ahrenlester@alliancenews.com
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Phoenix Group Holdings (PHNX)
Echo Energy (ECHO)