RE: Echo28 Mar 2023 13:42
The Company confirms that, following a successful commercial process for industrial clients, it has secured two new gas sales contracts (the "Contracts") for the upcoming 2023-2024 period with materially improved terms compared with the contracts announced on 3 May 2022.
The Contracts have an initial term of 12 months, with gas sales under the Contracts beginning in May 2023. The Contracts provide gross 6.8 MMscf/d of committed production (4.8 MMscf/d net to Echo) at an increased average price of US$4.48 per Mmbtu for the 2023-2024 period (compared with US$4.33 per Mmbtu for the previous period). In addition, an upfront gross cash payment of US$1 million (US$0.7 million, net to Echo) will immediately be paid and applied towards the working capital of the Santa Cruz joint venture.