StockMarketWire.com - Phoenix Global Resources said it had agreed to sell its stake in some non-core assets in Argentina to Echo Energy.

The company would sell its 70% non-operating interest in the Santa Cruz Sur package of five mature production blocks to Echo.

The initial consideration for the sale was $7m in cash plus applicable local taxes and a further $1.5m, which would be satisfied by the issue of new Echo shares at 2.95p each.

The sale also provided for further contingent deferred cash consideration of $1.5m, subject to an increase in the proven reserves attributable to the Santa Cruz Sur assets.

Echo had also agreed to reimburse 60% of the cost, up to a maximum of $1.1m, of the Campo Limite well on one of the Santa Cruz assets, which was due to be spudded during the fourth quarter of 2019 -- constituting $500k in cash and the balance in Echo shares.

'This transaction represents the sale of a non-core asset, in line with the company's strategy to restructure Phoenix's portfolio, to focus the company's resources on the development of its significant unconventional oil and gas portfolio,' Phoenix said.

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