- Echo Energy said it entered into a binding agreement to buy a 70% stake in Santa Cruz Sur assets with Petrolera El Trebol SA, a subsidiary of Phoenix Global Resources.

The acquisition would add material production to the company's portfolio, resulting in a diversified portfolio with a blend of significant production, low risk production enhancement opportunities and multi-tcf exploration potential at Tapi Aike, Echo said.

The Santa Cruz Sur Assets were located in the Austral Basin, adjacent to the company's existing Tapi Aike exploration permit, in the Santa Cruz province in southern Argentina.

The initial consideration for the acquisition was US$7m in cash and a further US$1.5m, which would be satisfied by the issue of 39,958,443 new shares in Echo at a price of 2.91 pence per share, representing a 6.6% premium to the closing mid-market price of 2.73p a share on 18 October.

At 10:29am: [LON:ECHO] Echo Energy Plc share price was +0.08p at 2.8p

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