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Echo Energy managing costs in Argentinean production business

Snapshot

  • Portfolio boosted by Santa Cruz Sur deal
  • Seeks to manage costs
oil workers

Quick facts: Echo Energy PLC

Price: 0.375 GBX

AIM:ECHO
Market: AIM
Market Cap: £3.03 m
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What it does

Echo Energy PLC (LON:ECHO) is a full cycle, exploration led, gas-focused AIM-listed exploration and production company with assets in Bolivia and Argentina.

Among its key assets there is Santa Cruz Sur, comprising five production concessions with 12 producing oil and gas fields.

 

How it is doing

In July Echo restructured its relationship with Argentinean firm Compañia General de Combustibles (CGC): under the new terms, it can cease commitments to ongoing pre-drill expenditure at Tapi Aike. It will at least temporarily withdraw from the project, which was 19% owned by Echo. It will retain an ability to re-enter the ‘western cube’ of the licence area.

In the first quarter of 2020 average production was 2,394 barrels oil equivalent per day as production was not interrupted amid the pandemic.

 

What the boss says: Martin Hull, chief executive

"We have taken a series of steps in recent months to reinforce our financial platform and deliver innovative mechanisms to reduce upfront cost while maintaining both exploration and development optionality.”

“We continue to adapt Echo's strategy for the current oil and gas price environment, with a clear focus on production, cost reduction and on investing where we can most effectively add value for shareholders."

“We are therefore delighted to have restructured our relationship with CGC which will enable us to sharpen our near term strategic focus on our low-risk production and substantial development and exploration opportunities at Santa Cruz Sur."

 

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