Business
Portfolio Restructuring and appointment of CEO
Portfolio Restructuring and appointment of CEO.
About this update from Nativo Resources Plc
[{"type":"text","content":"\n \nRNS Number : 4818Z Echo Energy PLC 20 May 2019 \n\n20 May 2019\n \nEcho Energy plc\n(\"Echo\" or the \"Company\")\n \nArgentinian Portfolio Restructuring and appointment of Chief Executive\n \nEcho Energy plc, the Latin American focused upstream oil and gas company, is pleased to provide an update on the Tapi Aike seismic acquisition programme and to announce a restructuring of the Company's onshore Argentinian portfolio, pursuant to which the Company will consolidate its focus on the Tapi Aike licence and its multi Tcf exploration potential.\n \nHighlights:\n \n· Strong progress on Tapi Aike seismic acquisition reinforcing the exciting Tapi Aike prospectivity.\n \n· Restructued Compañía General de Combustibles S.A. (\"CGC\") relationship following a portfolio review which was focused on establishing the best way forward in terms of risk/reward balance and capital allocation for the Company.\n \n· The new relationship terms with CGC, the Company's Argentinian partner, will result in additional funding for the Company's Tapi Aike drilling campaign, a material reduction of the Company's near term capital expenditure requirements and represents a significant improvement on the original Tapi Aike acquisition economics. This consists of:\n \n1. Restructured participation in the Tapi Aike licence, under which Echo will now hold an 19% interest and pay 19% of costs in Tapi Aike, ending the previous CGC carry arrangement and significantly lowering the Company's capital obligations. CGC will additionally release US$2.06m of Echo cash previously earmarked for Fracción C, Fracción D, Laguna Los Capones (\"CDL\") which Echo will direct towards the Tapi Aike drilling campaign costs.\n \n2. Decision not to proceed to the second phase of work at CDL leading to a relinquishment of the Company's interests in the concessions and the associated liabilities including avoiding a seismic commitment which was estimated to cost the Company approximately US$11 million.\n \n· As a result of the new arrangements the Company and CGC are now in a position to accelerate the exploration program and confirm plans to drill the first well in Tapi Aike in Q4 2019.\n \nTa...