Echo Energy PLC Issue of Equity and Tapi Aike Option Update (5596J)
December 22 2020 - 8:00AM
UK Regulatory
TIDMECHO
RNS Number : 5596J
Echo Energy PLC
22 December 2020
THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN (THE
"ANNOUNCEMENT") IS RESTRICTED AND IS NOT FOR RELEASE, PUBLICATION
OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN,
INTO OR FROM THE UNITED STATES, CANADA, AUSTRALIA, JAPAN, SOUTH
AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO MIGHT CONSTITUTE A
VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH
JURISDICTION.
THIS ANNOUNCEMENT DOES NOT CONSTITUTE OR CONTAIN ANY INVITATION,
SOLICITATION, RECOMMENDATION, OFFER OR ADVICE TO ANY PERSON TO
SUBSCRIBE FOR, OTHERWISE ACQUIRE ANY SECURITIES OF THE COMPANY.
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY
THE GROUP TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE
MARKET ABUSE REGULATION (EU) NO. 596/2014. UPON THE PUBLICATION OF
THIS ANNOUNCEMENT VIA REGULATORY INFORMATION SERVICE, THIS INSIDE
INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.
22 December 2020
Echo Energy plc
("Echo" or "the Company")
Issue of Equity
Tapi Aike Option Update
Echo Energy, the Latin American focused upstream oil and gas
company, announces that, as a result of additional demand following
the Company's fundraising announced on 1 December 2020, the Company
has raised additional gross proceeds of GBP856,000 through the
issue of 167,843,138 new ordinary shares (the "Subscription
Shares") at 0.51 pence per share (the "Subscription Price") with
warrants attached to new investors pursuant to a direct
subscription with the Company (the "Subscription"), conditional on
admission of the Subscription Shares to trading on AIM. The Company
also provides an update in respect of its option to re-acquire a
19% participating interest in the Tapi Aike asset.
The Subscription Shares will, when issued, rank pari passu in
all respects with the Company's existing ordinary shares of 0.25
pence each ("Ordinary Shares") and application will be made for the
Subscription Shares to be admitted to trading on AIM ("Admission").
Admission is expected to take place on or around 8.00 a.m. on 11
January 2021.
The net proceeds of the Subscription of approximately GBP800,000
will add to the Company's working capital resources and be applied
towards a range of near term growth projects within the existing
portfolio designed to deliver production uplift in response to
improved market conditions. This will serve as a platform for cash
generation to underpin future growth, both strengthening the
Company's balance sheet and also providing support for Echo to
pursue value accretive transactions.
With the Subscription Shares issued with warrants to subscribe
for new Ordinary Shares attached, the Company has also
conditionally issued 167,843,138 warrants to subscribe for new
Ordinary Shares at any time until the second anniversary of issue
(the "Subscription Warrants"). 83,921,569 of the Subscription
Warrants are exerciseable at 0.7 pence per new Ordinary Share and
83,921,569 of the Subscription Price are exerciseable at 0.75 pence
per new Ordinary Share. Whilst 50% of the Subscription Warrants
have been conditionally issued subject to Admission, the issue of
the remaining 50% of the Subscription Warrants will be subject to
receipt of necessary share issuance authorities at the Company's
2021 annual general meeting.
Tapi Aike Option
On 16 July 2020 the Company announced the terms of an option
pursuant to which Echo has had the right to re-acquire a 19%
participating interest in the Taki Aike exploration asset, onshore
Argentina (the "Option").
The Company announces that on 22 December 2020 it received
notification from the operator of the Tapi Aike asset that, should
the drilling of the next exploration well in the Tapi Aike Western
Cube drill programme begin on its intended commencement date in Q1
2021, the Option is now no longer capable of exercise and will
lapse. The decision by the Company to allow the Option to lapse is
inkeeping with Echo's ongoing focus on high impact cash generative
production and on the identified and lower risk potential upside in
the Santa Cruz Sur portfolio.
Following the issue of the Subscription Shares, the Company's
issued share capital will consist of 1,207,894,058 Ordinary Shares.
Each Ordinary Share has one voting right and no shares are held in
treasury and this figure may be used by shareholders in the Company
as the denominator for the calculation by which they will determine
if they are required to notify their interest in, or a change to
their interest in, the share capital of the Company under the
Financial Conduct Authority's Disclosure Guidance and Transparency
Rules.
For further information, please contact:
Echo Energy via Vigo Communications
Martin Hull, Chief Executive Officer
Vigo Communications (PR Advisor)
Patrick d'Ancona
Chris McMahon +44 (0) 20 7390 0230
Cenkos Securities (Nominated Adviser)
Ben Jeynes
Katy Birkin +44 (0) 20 7397 8900
Shore Capital (Corporate Broker)
Jerry Keen +44 (0) 20 7408 4090
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END
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