RE: Target price 0,50 GB6 May 2023 18:42
Echo Energy PLC, down 40% at 0.04p, 12-month range 0.04p-0.6p. The Latin America-focused energy company reports falling production and a cash shortage. In the first quarter of 2023, average net gas production fell to 6.3 million standard cubic feet per day from 7.3 million in the final quarter of 2022. Net liquids production averaged 213 barrels of oil per day, down 29% from the quarter before. Says reduction in liquid sales volumes during the quarter and elevated Argentinian inflation levels have "significantly" weakened the group. At April 17, its UK cash balances stood at less than GBP100,000. Echo expects around ARS135 million, about GBP500,000, in revenue receipt in Argentina towards the end of April. Continues to explore financing options. Notes proposal from "significant" Argentine investor with potential to inject cash and an asset into the business, but discussions are at a "very early stage".