Echo Energy, the Latin American focused upstream oil and gas company, announces the conditional placing of new ordinary shares in the Company to raise gross proceeds of £475,000.
 
Pursuant to the Placing Echo Energy has conditionally issued 95,000,000 new Ordinary Shares at a placing price of 0.5p per Placing Share, with warrants attached to the Placing Shares on a 1-for-1 basis. As a result, the Company has also conditionally issued 95,000,000 warrants to subscribe for new Ordinary Shares at a price of 1.0p per new Ordinary Share (being a 54 per cent premium to the closing mid-market price per Ordinary Share price on Friday 24 July 2020) at any time until the second anniversary of issue.  In addition to the Placing Warrants, the Company has also conditionally issued 5,700,000 warrants to subscribe for new Ordinary Shares at any time until the second anniversary of issue and with an exercise price of 0.8p per Ordinary Share in respect of fees incurred in connection with the Placing.
 
Admission is expected to take place on or around 8.00 a.m. on 10 August 2020.

The net proceeds of the Placing of approximately £450,000 will strengthen the Company's cash position, will enable acceleration of prioritised activities in respect of the previously announced initial portfolio of workover and intervention operations at Santa Cruz Sur in Argentina and be applied towards the Group's general working capital requirements.