Last checked at 5 Apr 2022 07:00
5 April 2022
Echo Energy plc
("Echo" or the "Company")
Production Update
Echo Energy, the Latin American focused energy company, is pleased to provide an operational update regarding its Santa Cruz Sur assets, onshore Argentina for Q1 2022.
Production during the period from 1 January 2022 to 31 March 2022 has continued to remain strong and reached an aggregate of 134,167 boe net to Echo during the period, including 23,830 bbls of oil and condensate and 662 MMscf of gas.
Net liquids production in Q1 2022 averaged 265 bopd, an increase of 10% over Q4 2021 levels (240 bopd). Q1 2022 represents the fourth quarter in row of liquid production increases with the annual increase since Q1 2021 of 34%.
Net gas production averaged 7.4 MMscf/d over Q1 2022 an increase compared with 7.0 MMscf/d achieved in Q4 2021.
Total net production averaged 1,491 boepd in Q1 2022, representing a 6% increase over Q4 2021 production.
The Company continues its focus on maximising revenue from production. Total liquids sales net to Echo over Q1 2022 increased to 26,096 bbls (Q4 2021: 25,881 bbls). During the quarter, two new customers signed agreements to purchase liquids from the Company, providing further sales options and flexibility as the Company seeks to increase competition and prices for its specific products.
Gas production is currently sold under existing long term contracts and pricing agreed in March 2021. As those contracts near expiry, the Company is engaged in commercial discussions around annual gas contracts for the period from May 2022 noting the marked increase in global gas prices in recent months, combined with the continued recovery in economic activity in Argentina.
The Company looks forward to continuing to update shareholders on production levels on a quarterly basis.
Martin Hull, Chief Executive, commented:
"We are pleased with operational progress in the first quarter of the year, with improvements in both liquids and gas output during that period compared to the prior quarter. This reflects the ongoing focus on making targeted investments, as cashflows allow, to drive production performance and access the identified production increase opportunities within the asset base. Coupled with stronger prevailing commodity prices, Echo continues to build firm operational and commercial foundations as it looks to grow the business further in 2022."
For further information, please contact:
Echo Energy Martin Hull, Chief Executive Officer
| via Vigo Communications |
Vigo Consulting (IR & PR Advisor) Patrick d'Ancona
| +44 (0) 20 7390 0230 |
Cenkos Securities (Nominated Adviser) Ben Jeynes Katy Birkin
| +44 (0) 20 7397 8900 |
Shore Capital (Corporate Broker)
| +44 (0) 20 7408 4090 |
Anita Ghanekar
Note
The assignment of Echo's 70% non-operated participation in the Santa Cruz Sur licences is subject to the authorisation of the Executive Branch of Santa Cruz's Province, which is part of the overall process of title transfer that is proceeding as anticipated. boe means barrels of oil equivalent; bopd means barrels of oil per day; boepd means barrels of oil equivalent per day; bbls means barrels; MMscf/d means million standard cubic feet of natural gas per day; MMscf means million standard cubic feet of natural gas.
Certain of the information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU 596/2014) pursuant to the Market Abuse (Amendment) (EU Exit) Regulations 2018. Upon the publication of this announcement via a Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.