Argentina: Echo Energy secures new gas sales agreement for its Santa Cruz Sur assets, onshore Argentina
17 Dec 2020
Echo Energy, the Latin American focused upstream oil and gas company, has provided a commercial update regarding the Company's gas sales from the producing
Santa Cruz Sur assets, onshore Argentina.
The Company is pleased to confirm that it has secured a new contract at a premium to prevailing spot market rates with a key gas customer for four months until end April 2021 pursuant to which the Company will supply the customer with approx. 1.8 MMscf/d gross (1.3 MMscf/d net to Echo) of natural gas. In the absence of the new contract these volumes would have been sold to the spot market. The gas price under the contract is a flat $2.00 per mmbtu representing a significant 26% premium to the prevailing local spot price in November 2020.