Echo Energy exports first oil cargo from Argentina projects

Echo Energy exports first oil cargo from Argentina projects

Echo Energy Plc said it exported its first cargo of oil produced at the Fraccion C and Fraccion D projects on 14 April 2018.

The AIM-listed oil and gas company said its share of oil production in the first quarter of 2018 from the two sites was around 25,000 barrels, with a final realised sale price based on the average Brent crude price (currently US$71.6 per barrel) for the 5 days following cargo loading with a US$6 discount per barrel. 

The group added that it had sold all its sales gas produced in the first quarter, totalling a net of 245.1mln standard cubic feet, to the Argentinian market for an average price of US$4.21 per million British thermal units (mmbtu).

Echo estimated that net sales receipts for the first quarter before royalty, tax and operating expenses will be around US$2.7mln.

Echo Energy chief executive, Fiona MacAulay, said: “Loading our first cargo was a significant step for Echo, particularly with Brent currently trading at a sustained US$70 / barrel for the first extended period during 2018.

She added: “We are also delighted that gas sales have remained strong and our realised blended price for those has been in excess of US$4.20 per mmbtu throughout the summer season in Argentina. Receipt of maiden LATAM revenues in Q1 marks an important milestone in the Company’s mission to become an exploration-led gas-focused mid-cap E&P, delivering value for shareholders.”