Echo Energy PLC Extension to publication of 2021 Accounts (2588Q)
27 Junio 2022 - 1:00AM
UK Regulatory
TIDMECHO
RNS Number : 2588Q
Echo Energy PLC
27 June 2022
27 June 2022
Echo Energy plc
(" Echo " or the " Company ")
Operational and Commercial update
Extension to publication of 2021 Audited Report and Accounts
Echo Energy plc, the Latin American focused upstream energy
company, announces that AIM Regulation has granted the Company an
additional period of up to two months to publish its annual audited
accounts for the year ended 31 December 2021. The Company must
therefore publish its annual audited accounts for the year ended 31
December 2021 (the "2021 Annual Report") by 31 August 2022 but will
endeavour to do so as soon as possible.
This additional period is in view of the adverse impact of
COVID-19 having resulted in delays in the ability of the local
Argentinian Santa Cruz Sur joint venture entity in which Echo holds
a 70% interest (the "SCS JV") to provide information to its
Argentinian auditor. As a result, the Argentinian auditor has been
delayed in the finalisation of the SCS JV audit, which the Company
now expects to be concluded during July 2022. The Company remains
in constant dialogue with both the Argentinian auditor and Echo's
UK auditor to seek to conclude and publish the 2021 Annual Report
as soon as is possible.
The Company is also pleased to provide a production and
commercial update regarding its Santa Cruz Sur assets, onshore
Argentina, where production during the period from 1 January 2022
to 18 June 2022 reached an aggregate of 243,230 boe net to Echo
during the period, including 44,905 bbls of oil and condensate and
1,190 MMscf of gas.
Net liquids production in Q2 to 18 June 2022 averaged a 267
bopd, a slight increase on Q1 levels despite a 35-day maintenance
and upgrade programme on the Oceano field during Q2, when oil and
gas production from the field was temporarily brought offline.
Net gas production averaged 6.7 MMscf/d in Q2 to 18 June 2022, a
reduction compared to the Q1 2022 figure of 7.4 MMscf/d as a result
of the Oceano field production being brought temporarily offline
for maintenance and upgrades to the compressor and associated
infrastructure.
Production from Oceano remains strong and with production
increases remaining sustainable. In the 40 days post-maintenance
commissioning, production from Oceano average 2.15 MMscf/d,
representing an increase of 46% in daily gas production at Oceano
when compared to the 40-day period immediately prior to maintenance
operations.
Gas sold since the start of May 2022 has been sold under the new
2022-2023 contracts announced by the Company on 3 May 2022, with
flexibility to capitalise on periods of attractive spot pricing. In
May, gas revenue net to Echo (inclusive of VAT) is expected to be
c.US$1.0m, an increase of more than 160% over gas sales in
April.
Total liquid sales net to Echo in 2022 to 23 June were 45,847
bbls. In Q2 2022 an additional new customer signed an agreement to
purchase liquids from the Company, providing further sales options
and competitive leverage in the domestic market. In May total net
liquids revenue was c.US$0.4m.
It is anticipated that these increased revenues over the course
of the annual gas contracts are capable of being applied towards
the acceleration of the Company's operational programme to increase
production whilst also being applied to the outstanding Santa Cruz
Sur Joint Venture historical creditor balances. As of 30 April
2022, this SCS JV current liabilities were estimated (unaudited) at
US$13.9m gross (US$9.7m net to Echo's 70% interest). This is
slightly up compared with the (unaudited) balances at 31 Dec 2021
of US$13.8m (US$9.6m net to Echo's 70% interest). The Santa Cruz
Sur Joint Venture balances are prior to Argentinian VAT credits due
to the Company.
The Company's cash balances as at 30 April 2022 stood at
c.US$1.6 million (including US$1.0 million of Echo's 70% interest
of SCS JV cash balances in Argentina). Echo's consolidated cash
position as at 31 December 2021 was US$0.9m, up 28% from US$0.6m as
at 31 December 2020.
Whilst remaining subject to audit, the Company confirms that it
expects to report revenues for the year ended 31 December 2021 of
US$11.1m (2020: US$11.1m) and net long-term debt of US$29.0m as at
31 December 2021 (2020: $30.0m). As announced by the Company on 14
January 2022, total 2021 cumulative production from Santa Cruz Sur
net to Echo's 70% interest in the Santa Cruz Sur assets was 567,370
boe (including 2,920 MMscf of gas).
For further information please contact:
Echo Energy plc Via Vigo Communications Ltd
Martin Hull, Chief Executive
Officer
Cenkos Securities plc (Nominated Tel: 44 (0)20 7397 8900
Adviser)
Ben Jeynes
Katy Birkin
Vigo Consulting Ltd (IR/PR Tel: 44 (0)20 7390 0230
Advisor)
Patrick d'Ancona
Chris McMahon
Shore Capital (Corporate Broker) Tel: 44 (0)20 7408 4090
Anita Ghanekar
Boe means barrels of oil equivalent; MMscf means million
standard cubic feet; MMscf/d means million standard cubic feet per
day; bopd means barrels of oil per day; and boe means barrels of
oil equivalent.
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