Echo Energy PLC Bolivian Market Entry (6446I)
21 June 2017 - 4:00PM
UK Regulatory
TIDMECHO
RNS Number : 6446I
Echo Energy PLC
21 June 2017
21 June 2017
Echo Energy plc
("Echo" or the "Company")
Bolivian Market Entry
Further to the Company's recently announced onshore gas strategy
across Latin America, Echo is delighted to announce the signature
of its first transaction in Bolivia.
The Company has signed a binding joint evaluation agreement with
Pluspetrol Bolivia Corporation SA ("Pluspetrol") which positions
the Company to secure an 80% operated interest in the Huayco block
in Southern Bolvia.
The Huayco block lies within the Tarija Basin, benefits from
full 3D seismic coverage and, critically, the Company internally
estimates it has significant multi-Tcf gas potential. The block
spans 75 square kilometres and is close to key export gas pipeline
infrastructure which would connect any discovery to high value gas
markets in Brazil and Argentina.
The agreement commences with a technical evaluation after which,
subject to the usual regulatory approvals, Echo will take an 80%
operated position (Pluspetrol currently holds a 100% operated
position). Whilst Echo will pay 100% of the first well (and 80% of
the wells thereafter), the evaluation agreement only commits Echo
to fund the agreed technical studies and as such no back costs or
consideration is payable.
Both companies view this as the start of a longer-term
partnership in which other potential opportunities may be explored
in country.
The Company also confirms it is close to securing other
exploration and production assets in the region which will be
subject to separate announcements.
James Parsons, Chairman, commented
"We are delighted to reveal our first transaction in Bolivia as
part of our recently announced Latin American upstream gas
strategy. We are confident in the multi Tcf scale and technical
quality of this acreage and believe it will also be of interest to
strategic partners in due course.
We understand the strategic value of establishing relationships
with key regional industry participants, and see Pluspetrol as a
long-term partnership across the region who can assist Echo whilst
we build our operating capability.
This initial move also demonstrates our ability to move quickly
in securing access to world class assets as we build a broad
exploration portfolio in the gas hungry Central and South American
region. The transaction comes quickly after our recent appointment
of senior members of our new executive team, and I am very pleased
that we are continuing to build momentum."
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
END
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