Echo Energy PLC Bolivian Market Entry (6446I)

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         [e-mail] 
Fiona MacAulay          Echo Energy plc         [e-mail] 
                        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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June 21, 2017 02:00 ET (06:00 GMT)