Echo Energy PLC Egypt Divestment (1242I)
15 June 2017 - 4:00PM
UK Regulatory
TIDMECHO
RNS Number : 1242I
Echo Energy PLC
15 June 2017
15 June 2017
Echo Energy plc
("Echo" or the "Company")
Egypt Divestment
Further to the announcement on 18 April 2017 and consistent with
the Company's strategy to build a LATAM exploration business, the
Company is pleased to confirm it has now sold its legacy Egyptian
business.
The Company has entered into an agreement to sell its 25%
effective working interest in its Egyptian East Ghazalat licence to
its Joint Venture partner, Nostra Terra plc. The sale is for a
total consideration of USD $500,000, split into three tranches. An
immediate payment of USD $100,000 is payable when the Egyptian
General Petroleum Corporation approve the registration of any
member of the buyer's Group as a party to the concession. The
balance of the consideration is payable in two tranches triggered
upon achievement of two performance milestones, namely production
of 800 bopd from the area for 30 consecutive days and production of
1,000 bopd from the area for 30 consecutive days.
The consideration is payable in either cash or shares. Where the
consideration is shares, the quantity of shares issued shall be
determined by dividing the relevant consideration by the lower of:
(i) the mid-market closing price of the buyer shares as traded on
AIM on the dealing day prior to the date of this Agreement; and
(ii) the mid-market closing price of the buyer shares as traded on
AIM on the dealing day prior to the date upon which the relevant
Consideration is payable.
James Parsons Echo Energy plc j.parsons@echoenergyplc.com
Fiona MacAulay Echo Energy plc f.macaulay@echoenergyplc.com
ZAI Corporate Finance
John Treacy Ltd. 020 7060 2220
(Nominated Adviser)
Oliver Stansfield Brandon Hill Capital
Jonathan Evans (Broker) 020 3463 5000
Patrick d'Ancona
Chris McMahon Vigo Communications
Ali Roper (PR Adviser) 020 7830 9700
This information is provided by RNS
The company news service from the London Stock Exchange
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