Shares in Echo Energy jumped 25%, gaining 0.01p, after confirming the partial sale of its working interest in the Santa Cruz Sur project.
The Latin American-focused energy company is looking to sell 65% of its 70% stake in the project for £1.725mln to provide ‘much-needed funding.’
Echo said the transaction would address its near-term funding challenges while continuing to provide exposure to the Santa Cruz portfolio.
There is also an option to repurchase a 5% stake further down the line for £100,000, it said.