Excitement is building about where Echo EnergyPLC (LON:ECHO), the latest vehicle of the team behind the success story that is Sound Energy PLC (LON:SOU), is going to start to invest some of the £26mln it has raised.
Oil commentator Malcolm Graham-Wood has spoken to the management team recently and expects action soon, he tells Proactive.
“Word is they are quite close to a first major acquisition but two or three may be in the pipeline as these people don’t let grass grow under their feet.”
WATCH: Echo Energy 'quite close' to first major acquisition - Malcolm Graham-Wood
Gas in South America will be the target, he said, with Brazil, Bolivia and Colombia the most likely places for a deal.
“South America is very exciting for gas. The infrastructure is in place. A number of players have exited in last few years and Echo can build quickly by taking on these licences.”
To speed up the process, Graham-Wood also suggests Echo may take a stake in assets or companies with an on-the-ground team in place already and he expects interesting senior managerial appointments to follow once the deals start to be done.
Eventually, and once it gets to a decent size, Graham-Wood can see Echo being taken over by a major.